Should You Invest $1,000 in Micron Technology (MU) Stock Right Now?
Key Points
Micron has been riding the artificial intelligence (AI) wave.
Its memory chips are vital for AI processes.
Its future seems bright.
- 10 stocks we like better than Micron Technology ›
If you've got $1,000 burning a hole in your pocket and you're looking for a promising investment, you might consider shares of Micron Technology (NASDAQ: MU), the memory chip specialist.
After all, headlines about it -- such as "Is Micron Technology Stock the Next Nvidia?"-- look quite promising.
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Image source: Getty Images.
Here's one reason investors are so interested in it lately:
|
Time Period |
Average Annual Return |
|---|---|
|
Past 1 year |
352% |
|
Past 3 years |
91% |
|
Past 5 years |
36% |
|
Past 10 years |
45% |
|
Past 15 years |
27% |
Source: Data from Morningstar.com as of Feb. 12, 2026.
Yowza, right? You don't see numbers like that very often. Micron's stock has been soaring, especially over the past year.
Here's why you might want to invest in Micron:
- It's benefiting heavily from the boom in artificial intelligence (AI), which requires not only processing chips, but also memory chips.
- It's growing its revenue and net income robustly, with first-quarter numbers up 57% and 180%, respectively.
- It's poised to continue growing, with AI spending expected to top $2.5 trillion this year and soar to $3.3 trillion next year, per Gartner. Micron CEO Sanjay Mehrotra has said: "Micron's technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler, and we are investing to support our customers' growing need for memory and storage."
I'm afraid the news isn't all rosy, though -- because Micron's stock isn't exactly cheap, with a recent price-to-sales (P/S) ratio of 11.1 well above its five-year average of 3.6. The forward-looking price-to-earnings (P/E) ratio of 10.6, though, is a mite below its five-year average of 11.6.
Take a closer look at Micron and see what you think. You might buy some shares now if you plan to hold them for many years, or buy into it incrementally. Or add the stock to your watch list, hoping for a pullback. Remember, too, that it's not the only promising tech stock around.
Should you buy stock in Micron Technology right now?
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Selena Maranjian has positions in Micron Technology and Nvidia. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
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