NASDAQ:MU Stock: A Strategic Buy Amid the Market Drop?
Micron Technology Inc. (NASDAQ:MU) is currently facing significant volatility, with its stock price plummeting by over 35% from its highs. Despite this, many experts, including myself, still see immense long-term potential in NASDAQ:MU, driven by its solid fundamentals and strong growth prospects, especially in the growing sectors of AI and data centers. As of today, NASDAQ:MU trades around $67, representing a critical buying opportunity, as the stock has dropped well below its historical price-to-earnings ratio.
The question on many investors’ minds is: Is now the right time to buy NASDAQ:MU, or should you wait for further dips? Given the broader market downturn and specific challenges in the semiconductor sector, Micron Technology has seen its stock price dragged down, despite showing impressive growth in key business segments. But should investors be cautious, or is this the opportunity to dive in at an undervalued price?
Why the NASDAQ:MU Stock Dip Might Be a Buying Opportunity
Micron Technology has faced substantial market corrections recently, as the semiconductor industry is highly cyclical, and stock prices tend to follow a similar pattern during these down periods. However, NASDAQ:MU’s historical performance during these downturns tells a different story. Typically, when Micron’s price has dropped this drastically, it has marked a bottom point, which has then been followed by strong recoveries. For instance, when NASDAQ:MU was last trading at similar low points, it recorded significant gains in the following years. Investors familiar with Micron’s cyclical nature understand that timing the market is difficult, but NASDAQ:MU has repeatedly proven to be a strong long-term investment, especially when bought during such downturns.
As of the latest fiscal reports, NASDAQ:MU saw $8.1 billion in revenue for Q4 2025, with a 38% year-over-year increase. Data center DRAM revenue hit record highs, and its High Bandwidth Memory (HBM) sales surpassed $1 billion for the first time, a 50% quarter-over-quarter increase. This shows that Micron is strategically positioned in critical growth markets like AI and data centers, areas that will continue to see exponential demand in the years to come. NASDAQ:MU’s focus on advanced memory solutions like DRAM and NAND is likely to yield long-term dividends as AI development accelerates. These segments made up a significant 76% of its revenue in Q2 2025, signaling strong reliance on cutting-edge technology and market leadership.
Despite these successes, NASDAQ:MU’s stock price has been hampered by various factors, including falling NAND prices and a slight decline in margins. Micron reported a 17% quarter-over-quarter drop in NAND sales, and its gross profit margins decreased by 160 basis points. However, these results still exceeded Wall Street’s expectations and are expected to rebound, especially with increased investment in high-margin memory solutions like HBM. Micron's ongoing $14 billion CapEx plan for FY2025 will help expand its capacity to meet rising demand for AI-related technologies, which should further boost its performance and profitability over the long term.
The Impact of Tariffs on NASDAQ:MU Stock
One of the key risks for NASDAQ:MU is the uncertainty surrounding global trade, particularly the tariffs imposed by the U.S. government. The recent increase in tariffs could potentially impact NASDAQ:MU’s cost structure and sales, especially given the reliance on its manufacturing facilities in China. However, Micron has stated that it is well-positioned to absorb the impact of these tariffs and will pass any additional costs onto its customers. Furthermore, NASDAQ:MU remains one of the few companies not significantly affected by the new semiconductor tariffs, which bodes well for its short- to mid-term stability.
While the current geopolitical landscape and potential tariff escalation could cause some volatility in the near future, NASDAQ:MU's leadership in memory solutions remains a critical asset, particularly in data centers and AI applications. The company's ability to navigate such challenges through strategic pricing and diversification of its manufacturing base will likely mitigate the impact of tariffs.
What’s Next for NASDAQ:MU?
Looking forward, the fundamentals for NASDAQ:MU continue to shine. Analysts forecast that NASDAQ:MU will reach $35.42 billion in revenue for FY2025, a 41% year-over-year increase. This growth is expected to be driven by the demand for high-performance memory chips, particularly in the data center and AI markets. With NASDAQ:MU’s forward EV to EBITDA multiple sitting at just 4.8x, the stock looks exceptionally cheap when compared to the broader semiconductor sector, which makes it an attractive option for value-driven investors.
The company’s substantial market share in the DRAM and NAND segments, along with its rapidly expanding presence in HBM, puts NASDAQ:MU in a strong position to capitalize on the booming demand for memory solutions. Even if tariffs and economic headwinds cause short-term volatility, NASDAQ:MU's solid financials and growth prospects make it a prime candidate for long-term gains. The current price offers a compelling risk/reward scenario for investors willing to hold through the potential volatility.
The Bottom Line: NASDAQ:MU as a Buy
Given NASDAQ:MU's strong position in the memory and storage markets, its solid financials, and its strategic investments into AI and data centers, the stock presents a compelling buy opportunity at its current valuation. Despite the near-term risks posed by tariffs and market fluctuations, NASDAQ:MU's growth prospects remain robust, particularly with the AI revolution gaining momentum.
The recent price drop in NASDAQ:MU has made it more affordable for long-term investors, making this an attractive point to accumulate shares. As the company continues to expand its product offerings and capitalize on the increasing demand for advanced memory solutions, NASDAQ:MU has the potential to deliver solid returns for investors who are patient and willing to ride out short-term volatility. As such, I maintain my "Buy" rating for NASDAQ:MU and consider it a strong investment opportunity moving forward.
If you're ready to make an informed decision on NASDAQ:MU, check out the latest real-time stock chart here: NASDAQ:MU Stock Chart.
