Is MU a good stock to buy now? We came across a bullish thesis on Micron Technology, Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on MU. Micron Technology, Inc.’s share was trading at $418.69 as of March 11th. MU’s trailing and forward P/E were 39.80 and 13.07 respectively according to Yahoo Finance.
Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products in the United States and internationally. MU has emerged as a structural winner in the memory market as artificial intelligence fundamentally reshapes demand dynamics. Unlike traditional workloads, AI workloads—spanning inference, video generation, and autonomous vehicles—are memory-bound rather than compute-bound, driving unprecedented demand for high-bandwidth memory (HBM).
This shift has disrupted the 40-year boom-bust memory cycle: supply cannot respond quickly due to CoWoS packaging limits, extended qualification timelines of 18–42 months, and multi-year fab construction. Additionally, HBM production cannibalizes standard DRAM supply at a 3:1 ratio, amplifying shortages and giving Micron pricing power in a market that was historically fungible and cyclical.
Geopolitical fragmentation further enhances Micron’s position. As the only major U.S.-based memory manufacturer, the company benefits from “secure supply” status for government and defense customers, while Chinese restrictions and export controls limit competition. Coupled with co-development agreements and multi-year customer lock-ins, Micron’s memory offerings are now highly differentiated, reducing interchangeability and creating structural pricing advantages.
Financially, Micron has demonstrated rapid margin expansion, with gross margins rising from negative territory in 2023 to 68% guidance in FY2026, supported by strong revenue growth and locked-in HBM agreements. The company is aggressively investing in capacity expansion, including its Idaho fab and Singapore packaging facilities, though new supply will only come online in 2027–2028.
Bullishly, if AI demand continues to accelerate and supply constraints persist, Micron could sustain gross margins of 50–55% with 12–15% annual revenue growth, positioning the company as a critical infrastructure provider rather than a cyclical commodity. At the current valuation, the market has yet to fully price in the durability of these structural advantages, offering significant upside potential for investors who recognize the long-term transformation in the memory landscape.
Previously, we covered a bullish thesis on Micron Technology, Inc. (MU) by Oliver | MMMT Wealth in April 2025, which highlighted MU’s technological edge in AI memory, strong revenue and EBITDA growth, and historically low valuation. MU’s stock price has appreciated by approximately 496.33% since our coverage. Nikhs shares a similar view but emphasizes AI-driven structural shifts, supply constraints, HBM cannibalization of DRAM, and Micron’s geopolitical advantage as the only major U.S.-based memory supplier.
Micron Technology, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 137 hedge fund portfolios held MU at the end of the fourth quarter which was 105 in the previous quarter. While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
