Micron Technology Is Having Its Nvidia Moment. Is It Still a Buy?
A few years back, watching Nvidia churn out triple-digit revenue growth felt almost like watching a magic trick—too good to be true. At the time, we didn’t realize we were witnessing the opening act of the artificial intelligence revolution. Investors who stayed on the sidelines back then are likely nursing some serious regret today. History doesn’t always repeat, but it certainly rhymes. Micron Technology has recently turned in an eye-popping earnings report that echoes those early Nvidia days. Sales hit $23.8 billion for the quarter, a staggering jump from the $8 billion reported just a year ago. It begs the question: is Micron technology a buy, or are we chasing a ghost?
Micron’s business is essentially going bananas because it sits at the heart of the hardware stack. The company produces high-bandwidth memory (HBM), which is the lifeblood for Nvidia’s GPU AI accelerator chips. These chips are useless without enough fast memory to process data at lightning speed. As AI models grow more sophisticated, the hunger for HBM becomes bottomless. Micron technology is a buy for many analysts precisely because it is catching a tidal wave of demand similar to what Nvidia saw at the start of the data center boom. This isn’t just a lucky fluke; it’s a structural shift in how computing hardware is built.
Global memory shortages are the new reality.
Micron noted on its recent earnings call that it can currently meet only half to two-thirds of customer demand, creating a backlog that looks destined to grow. Meanwhile, Nvidia is moving full steam ahead; its Blackwell architecture is performing well, and the successor, Rubin, has already entered full production. For investors, the math is getting interesting. Micron technology is a buy in many portfolios because the stock trades at less than 7 times 2026 earnings estimates. Analysts are projecting earnings to grow by an average of 90% annually over the next five years. Honestly, that kind of growth profile at this valuation is rare in the current tech landscape.
Of course, nothing in the market is guaranteed, and the risks are real. If supply finally catches up to demand, Micron’s pricing power and those juicy profit margins could begin to erode. Furthermore, the stock took a bit of a hit after Google Research published a paper suggesting new algorithms might eventually reduce the need for massive chip memory caches. It’s a reminder that tech shifts can happen overnight. Still, when you look at the big picture—with hyperscalers planning to spend roughly $700 billion this year—the narrative behind Micron technology is a buy signal for those who believe this supercycle has plenty of runway left through 2027.
