NVIDIA and Advanced Micro (AMD) supply some of the world’s most powerful data center chips for artificial intelligence (AI).
Micron Technology supplied with memory and storage chips is also very important for AI workloads in data centers, computers and smartphones.
Currently, Micron’s shares are trading a very attractive assessment, providing investors with great potential purchase.
10 shares we like more than Micron Technology ›
When it comes to artificial intelligence (ai) chips, most investors usually think about graphics processing devices (GPU) Nvidia(NASDAQ: NVDA) and Advanced micro devices(NASDAQ: AMD); GPU sales have grown to both companies over the last couple of years, and in the case of NVIDIA, they added trillions to their market capitalization.
But Micron technology(Name: MU) It also deserves recognition for their memory and storage chips, which are increasingly important for AI workloads in data centers, personal computers and even smartphones. The company has just announced its financial fiscal 2025. The results of the third quarter (which ended on May 29), revealing the constant demand for AI related memory capabilities.
2025 Micron Stock increased by 42%, but that’s why it can still be a screaming purchase.
Image Source: Getty Images.
The GPU data center is intended for parallel processing, which means they can make several calculations at the same time and manage the giant data sets needed to install AI models. However, these workloads also require a high -level memory (HBM), which stores information in the prepared state, so that GPU can call it instantly.
The Micron HBM3E solution to the Data Center determines industrial activities and efficiency. In fact, NVIDIA has selected it for its latest Blackwell and Blackwell Ultra GPUS, while Advanced Micro devices (AMDs) will also use it in the future MI355X GPU. Micron is now preparing to produce commercial quantities of the new HBM4 data center solution next year, which will increase the increase in productivity above HBM3E and consume 20% less power, making it ideal for the next generation “reasoning” for AI models.
In this calendar year, Micron estimates that the HBM market addressed to it will be worth $ 35 billion, hoping that the number by 2030 will be worth it. It will increase to $ 100 billion, so the company will have a huge opportunity.
However, some workloads are now processed on personal computers (PCS) and smartphones without the need for external calculation of data centers. This trend will accelerate when the chips become more powerful, which is already increasing the demand for drams. Micron says that PCS is usually required for the minimum drama capacity-16 gigabytes compared to 12 gigabytes of its colleagues, not Ai, and Smart phones show a similar increase.
Micron earned $ 9.3 billion in total income in the third 2025. A fiscal quarter ending on May 29th. It was 37% more than the year, as well as conveniently exceeding the highest range of leadership instructions, which was $ 9 billion. However, the true growth history is after the headline number surface.
The Micron Counting and Network Development segment, where he takes into account HBM sales of his data center, earned $ 5.1 billion revenue, which increased by 97% more than the year. The income from the mobile segment was $ 1.6 billion, and although it decreased by 2% per year, it increased by 45% (compared to the second quarter of 2025 in the second quarter of the 2025 quarter three months earlier).
The rapidly increasing Micron revenue also produced a strong result in a quarter. Its generally accepted accounting principles (GAAP) profit per share (EPS) increased by 460% per year to $ 1.68.
Looking at the fourth quarter (which will end on August 31), Micron predicts a record $ 10.7 billion revenue and EPS-2.29, which would increase by 38% and 190%, respectively.
Despite the 42% increase in 2025, Micron Stock is still relatively cheap. Based on the company’s 12-month EPS-$ 5.55, the shares trade in 22.5 prices to force (P/E). This is 55% off NVIDIA shares that currently sell at a ratio of 50.9 p/e:
NVDA PE ratio data according to ycharts
Given that the Micron Hbm3e solution is integrated into all the latest NVIDIA GPU, Micron data centers sales should grow LOCKSTEP as NVIDIA data centers are sold here. When a possible AMD demand for the latest GPU and memory demand from AI PC and smartphone manufacturers is also reasonably reasonably concluded that Micron’s stock deserves a greater rating.
As a result, Micron Stock can currently be a great purchase, especially investors who already own NVIDIA and AMD and want to diversify their AI semiconductor estate.
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Anthony di Pysio has no position in any of the above shares. Motley Fool has positions and recommends advanced micro devices and NVIDIA. The Motley fool has a disclosure policy.
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