What Is One of the Best Artificial Intelligence (AI) Stocks to Buy Now?

Source The Motley Fool

Key Points

  • The artificial intelligence industry continues to remain hot, elevating stock valuations.

  • Reasonably priced stocks are out there, but it's getting more difficult to identify them.

  • One AI company is growing revenue and continues to sport a compelling valuation.

  • 10 stocks we like better than Micron Technology ›

The frenzy around artificial intelligence (AI) stocks continues unabated. A prime example is Nvidia. Its shares hit an all-time high on Oct. 9 after the U.S. government approved the sale of its AI semiconductor chips to the United Arab Emirates.

AI's popularity means many stocks in the sector are expensive. Finding a solid AI stock at a fair price can prove challenging. But there's one spectacular AI company with shares at a reasonable valuation that I'm watching.

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That company is Micron Technology (NASDAQ: MU). Here are the factors that make this one of the best AI stocks to scoop up right now.

A Micron Technology sign in front of the company's office building.

Image source: Micron Technology.

Why Micron Technology stock is a buy

Micron is a maker of computer memory and storage products. AI systems depend on these components to store and retrieve the data needed to execute tasks.

As a result, Micron's business is on fire. In its 2025 fiscal year, ended Aug. 28, revenue hit $37.4 billion, a significant jump from $25.1 billion in the prior year.

Not only is revenue rising, Micron is also doing an excellent job managing its expenses. Consequently, its fiscal 2025 diluted earnings per share (EPS) saw a jaw-dropping increase to $7.59, compared to $0.70 last year.

Micron's spectacular business performance led to a rise in its stock price. However, shares retain a reasonable valuation for an AI stock based on the price-to-earnings (P/E) ratio. Here's how Micron compares to Nvidia.

MU PE Ratio Chart

Data by YCharts.

The chart above shows Micron's P/E ratio is about half that of Nvidia's, indicating it's a better value. Also, while Micron's earnings multiple is rising, it's still below where it was at the start of the year.

Micron's strong business performance and appealing valuation make it a solid AI stock to buy.

Should you invest $1,000 in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $657,979!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*

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*Stock Advisor returns as of October 7, 2025

Robert Izquierdo has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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