Why Micron Stock Can Continue to Soar

• The information halfway roar and the propulsion toward agentic AI are giving Micron a tailwind dissimilar immoderate it's ever experienced.

• As with Nvidia successful caller years, beardown lawsuit request is lifting nett margins beyond belief.

• 10 stocks we similar amended than Micron Technology ›

It took machine representation institution Micron Technology (NASDAQ: MU) 20 years to regain the highs it had achieved during the dot-com bubble astatine the crook of the century. But since yet hitting a caller all-time precocious again successful 2021, Micron's banal has continued to soar. It is up astir 400% successful conscionable the past 3 years.

With the shares soaring to caller highs, investors are intelligibly enthusiastic. But connected Dec. 17, the institution reported fiscal results for its fiscal archetypal 4th of 2026. And it turns retired that investors really whitethorn not beryllium enthusiastic enough.

The concern trends are truthful favorable for the institution close present that investors whitethorn beryllium underappreciating its imaginable implicit the adjacent 3 to 5 years. And it's wherefore Micron banal could inactive bask immoderate much upside from here.

Investors thin to beryllium cautious astir buying Micron Technology banal due to the fact that it's a historically cyclical business. The illustration beneath illustrates the fluctuations from 2005 to 2020.

If the boom-and-bust financials continue, past this full treatment falls apart. However, a important inclination is presently underway that whitethorn yet assistance Micron's banal interruption escaped from its humanities cyclicality.

The secular inclination is artificial quality (AI), of course. Investors person heard plentifulness astir it successful caller years, but determination is simply a batch of enactment inactive to beryllium done to physique retired the AI infrastructure needed to execute the goals laid retired by tech giants.

These large tech companies are gathering caller information centers and filling them with graphics processing units (GPUs) from Nvidia. These GPUs proviso the computing powerfulness needed to bash utile things with AI. However, determination is overmuch much to the AI exertion stack than conscionable GPUs.

It has frankincense acold centered connected generative AI. In these applications, the models find generalities from ample information sets and usage them to make caller things. But generative AI is starting to instrumentality a backmost spot to agentic AI. And this is fueling caller hardware needs successful information centers.

The displacement to agentic AI -- wherever it is moving connected behalf of the idiosyncratic successful a much progressive and personalized mode -- requires much machine representation than before. And it's wherefore machine representation businesses person much request than they tin grip close now.

For the archetypal quarter, Micron's gross was up a stunning 57% twelvemonth implicit twelvemonth and much than 20% conscionable from the erstwhile quarter. And this isn't a one-off; it could beryllium the caller normal.