In 2025, leading semiconductor companies have experienced significant sell-offs in the market. As of March 21, shares in Nvidia have declined by 12% for the year. Similarly, Taiwan Semiconductor Manufacturing’s shares have fallen by 10%, and Broadcom has seen a 17% decrease in its stock price.
In contrast, Micron Technology has managed to outperform many of its industry counterparts, achieving a gain of approximately 12% this year. Despite these positive developments, Micron has remained relatively unrecognized in the artificial intelligence (AI) sector, but its stock is considered to be an attractive investment at present.
Micron Technology is increasingly gaining attention for its role in supporting AI workloads. Efficiently moving large data sets is crucial for developing AI applications, such as processing data in large language models and other AI-driven processes. Micron addresses this need with high-bandwidth memory (HBM), which enables AI chips to process data at significantly faster speeds compared to older memory and storage solutions. As AI applications advance into more complex areas like autonomous driving, machine learning, and robotics, the demand for HBM is expected to grow substantially.
Micron’s revenue and earnings trends over the past three years indicate a period of sustained acceleration, largely driven by widespread AI adoption. This strong demand has enabled the company to transition from operating at a loss to achieving consistent profitability. Recently, Micron reported its fiscal second-quarter results for 2025, with CEO Sanjay Mehrotra announcing that the next quarter could see record revenue, and the company expects improved profitability for the full year.
The company’s accelerating revenue, improved economics, and unique position in the chip industry make it an appealing opportunity for long-term investors. When evaluated on a forward price-to-earnings (P/E) basis, Micron emerges as the most affordable among its peers, despite showing significant multiple compression over the past year. At $94 per share, the stock is trading near its 52-week low, which seems inconsistent with its record sales and profitability. The fundamentals of Micron’s business are seen as largely disconnected from its market valuation, presenting the stock as a potential bargain for those interested in the AI sector’s growth.
Industry analysts believe that investors seeking less obvious opportunities in the AI chip market should consider investing in Micron, given its current valuation and the potential for long-term growth.
