We just covered Avoid SpaceX and Buy These 11 Stocks Instead. Micron Technology (NASDAQ:MU) ranks #3 (see Avoid SpaceX and Buy These 5 Stocks Instead).
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Redditors are dismissing space stocks as today’s hype cycle. What’s actually happening right now is an AI revolution, and every major tech company is in dire need of memory chips. That’s where Micron comes in. Micron Technology (NASDAQ:MU) is experiencing unprecedented demand for DRAM, NAND, and HBM memory as hyperscalers race to build out AI data centers. But here’s the problem: Micron can only fulfill 50 to 66 percent of actual demand in the medium term. Management expects supply and demand to stay tight beyond 2026.
To buffer against cyclical downturns, Micron has signed multi-year Strategic Customer Agreements with major cloud providers. They’re five-year agreements with take-or-pay provisions, meaning Micron Technology (NASDAQ:MU) gets paid regardless of whether customers actually take the product. The company is benefiting from massive price increases across the board. In Q2 2026, DRAM prices jumped 58 to 63 percent quarter over quarter. NAND Flash prices rose 70 to 75 percent. Enterprise SSD prices climbed 80 percent in a single quarter. These are not one-time spikes. TrendForce expects prices to stay elevated through Q4 2026 and beyond.
Burke Wealth Management stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q1 2026 investor letter:
“In an otherwise dismal quarter for growth equities, shares of ASML and Micron Technology, Inc. (NASDAQ:MU) delivered strong returns gaining +24% and +18% respectively during the first quarter. Both of these companies are essential players in delivering the compute power necessary to drive the AI revolution. Had the market displayed any sort of rational behavior during the first quarter, Nvidia would have joined this list of gainers after announcing the strongest results in the history of results and providing the strongest guidance in the history of guidance in late February, but near-term market absurdities prevented this outcome for the time being. The fundamental driver for both ASML and Micron is a seemingly insatiable demand for more compute power. Saying the world is compute constrained without proving it doesn’t get you far these days. We live in a world where many analysts are focused on calling out a peak in CAPEX spending and making the claim that the spending to date on AI has created a bubble that will take years to digest. This may still be the case, but if it is, executives from Amazon, Alphabet, Microsoft, and Meta are going to have a lot of explaining to do because collectively, these four companies committed to spend over $600 billion on AI related CAPEX this year. ..” (Click here to read the full text) (Click Here to Read the Letter in Detail).
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 the cheapest AI stock.
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