After Surging 918%, Is Micron Stock Still a Buy? Here's What History Says.

Micron Technology (NASDAQ: MU) has been one of the breakout successes in an otherwise volatile year for artificial intelligence (AI) stocks.

The semiconductor company -- which makes high-bandwidth memory (HBM) chips and solid-state drives for AI accelerators, data centers, computers, automotive systems, and smartphones, among others -- has been on a rocket ride.

The stock soared to $1,079 per share on June 3, up 278% from the start of the year and up a staggering 918% over the past 12 months.

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As one of just a handful of leaders in providing HBM chips for data centers and AI accelerators, Micron has been in high demand as the explosion in data centers has facilitated the need for memory chips. Micron has already sold out of its HBM chips for 2026, and the massive demand has allowed Micron to raise its prices, which has led to surging revenue and margins.

In the most recent quarter (Q2 2026), Micron's revenue surged 195% year over year to $23.9 billion. Just in the quarter alone, revenue spiked 76% from the previous quarter. Its gross margin in the cloud memory business increased to 74%, up from 55% in the same quarter a year ago. Within the data center space, it was also 74%, up from 47%.

In the upcoming fiscal third quarter, Micron anticipates revenue of $33.5 billion, which would be up 40% from the last quarter. The gross margin is expected to spike to 81%, and earnings are targeted at $18.90 per share, up from $12.07 per share last quarter.

Micron is still a good value

It's kind of hard to believe that Micron remains not just a good buy, but a good value, even after a 900%-plus increase.

It became an even better buy on June 5, when the stock tanked about 12%, down to $874 per share. The good news is that it really didn't have anything to do with Micron -- it was more spillover from the market's negative reaction to Broadcom's recent earnings report. This report beat estimates, but its guidance for growth was a little lower than investors expected. There was also some reaction to a strong jobs report, which meant that the case for lowering rates got harder to make.

More than anything, it may be in relation to investors seeing tech and AI stocks at super-high valuations and deciding to cash out.

But Micron is that rare AI stock that is still a bargain even after its meteoric growth. Now, after this 12% sell-off, itʻs an even better deal. That's a testament to the company's ridiculous earnings power. It got even stronger when Nvidia confirmed that Micron will be an HBM memory chip supplier for its Vera Rubin AI chip architecture.

Micron is trading at 50 times trailing earnings, but its forward price-to-earnings (P/E) ratio is just 10 -- which is in value territory. Its five-year price/earnings-to-growth (PEG) ratio is below 1 at 0.37, meaning it is undervalued relative to its long-term earnings expectations.

The last time Micron's forward P/E was this low was at the end of August 2025, when it was trading at $119 per share. It proceeded to rise 135% to close 2025 at $285 per share.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.