1. Micron Technology, Inc. (NASDAQ:MU)
Year-to-Date Returns as of December 3: 174.2%
Micron Technology, Inc. (NASDAQ:MU) is among the best dividend stocks to beat the S&P 500.
On November 24, Morgan Stanley raised its price target on Micron Technology, Inc. (NASDAQ:MU) to $338 from $325 while maintaining an Overweight rating. The analyst noted that while memory stocks have recently declined amid concerns about higher capital spending and easing shortages, these factors do not change the firm’s positive outlook. Reports of tightening memory supply suggest very strong earnings ahead, making the recent selloff appear unwarranted.
Micron Technology, Inc. (NASDAQ:MU) is scheduled to release its fiscal 2026 first-quarter results on December 17. Management has guided for $12.5 billion in revenue for the quarter, representing a 45% increase from the same period last year. Non-GAAP earnings are expected to reach $3.75 per share, more than double the $1.79 reported in the year-ago quarter.
This robust growth is being driven by a favorable demand-supply environment in the memory market, fueled by AI. Chip designers are increasingly integrating high-bandwidth memory (HBM) into AI chips to boost computing power and reduce latency. Micron Technology, Inc. (NASDAQ:MU) recently announced plans to invest 1.5 trillion yen ($9.6 billion) in a production facility in western Japan to manufacture AI-focused chips. The move, aimed at diversifying advanced chip production away from Taiwan, will focus on next-generation HBM chips, which are essential components for AI computing.
Micron Technology, Inc. (NASDAQ:MU) designs, develops, and manufactures memory and storage products, including DRAM and NAND flash memory, which are used in a wide range of applications.
While we acknowledge the potential of MU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MU and that has 100x upside potential, check out our report about this cheapest AI stock.
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