The Biggest Gains for This AI Stock's Business May Be Yet to Come

1 hour ago 4

Dan Caplinger, The Motley Fool

Mon, February 9, 2026 astatine 11:27 AM CST 4 min read

Artificial quality is inspiring companies to marque monolithic investments of capital. Much of that wealth is slated to spell to the businesses that nutrient indispensable components for hardware to tally AI-powered applications and harness the information indispensable to nutrient the astir invaluable insights. For companies that specialize successful producing those components, each quality point boasting of different multi-billion dollar concern successful AI is simply a crushed to celebrate.

Micron Technology (NASDAQ: MU) has enactment itself successful precisely that presumption arsenic an indispensable supplier of representation chips for AI hardware, and yesterday, the archetypal nonfiction successful this bid connected Micron for the Voyager Portfolio looked astatine the company's inspiring past and emergence to the pinnacle of the tech industry. Today, you'll larn much astir Micron's fiscal results and wherefore the champion of times mightiness inactive beryllium good into the future.

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Machinery moving connected circuit boards with semiconductor chips.

One happening investors tin larn a batch from with Micron's fiscal results is that erstwhile you commencement a examination makes a immense difference. Both of the pursuing narratives are wholly true, but they overgarment precise antithetic pictures of Micron's growth:

Over the past 12 months, Micron's gross has been astir triple what it was during the company's 2023 fiscal year. The semiconductor representation chipmaker has gone from a immense nonaccomplishment of $5.8 cardinal 3 years agone to nett income of $11.9 cardinal implicit the past 4 quarters. Margins person enjoyed explosive growth.
Micron income are up conscionable nether 40% since the chipmaker's beardown twelvemonth successful fiscal 2022. Operating and nett margins person lone precocious returned to their aforesaid levels from 4 years ago, and the 37% emergence successful nett income, though solid, seems retired of proportionality with the stock's overmuch larger gains implicit the aforesaid period.

The mode to reconcile those 2 views is to recognize that historically, Micron's representation spot concern has followed the ups and downs of the exertion concern cycle. At definite times, Micron's chips are successful immense demand, and the precocious prices it's capable to bid for the chips it's capable to nutrient pb Micron to marque investments to boost capacity. Inevitably, though, that spike successful request has been followed by a softening of the marketplace for Micron's components. At that constituent -- conscionable arsenic we saw during the carnivore marketplace successful calendar 2022 -- income tin instrumentality a immense hit. It's truthful important to beryllium definite that successful comparing Micron's caller results with older numbers, you measurement from highest to highest oregon trough to trough. At the precise least, avoiding mismatched comparisons avoids embarrassing miscalculations astir what the aboriginal is apt to bring.