President Trump Sells Micron Stock and Buys Another Mega-Cap Artificial Intelligence (AI) Stock

Source The Motley Fool

Key Points

  • President Trump’s recent disclosures indicate that his accounts sold shares of Micron and bought shares of Meta Platforms in August.

  • Micron has benefited greatly from a memory chip supply shortage, but history says earnings will decline during the next industry downturn.

  • Meta reported mixed second-quarter financial results due to legal and severance expenses, but the stock looks attractive at its current price.

  • 10 stocks we like better than Micron Technology ›

A financial disclosure from the Office of Government Ethics shows that President Trump's brokerage accounts executed over 500 trades in August. Those accounts are managed by third-party institutions, meaning Trump himself was not responsible for the decision to buy or sell any security.

However, the trades are still worth examining. In August, the president's accounts sold Micron Technology (NASDAQ:MU), with net sales totaling $251,000 to $515,000. Meanwhile, the largest buy was Meta Platforms (NASDAQ:META), with net purchases totaling $5.1 million to $25.3 million.

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Here's what investors should know about these artificial intelligence stocks.

Donald Trump stands at the White House press briefing podium with a U.S. flag behind him.

President Donald J. Trump stands at a podium during a White House press briefing. Image source: Official White House Photo by Andrea Hanks.

Micron Technology: The stock President Trump's accounts sold in August

Micron manufactures memory and data storage solutions built on DRAM and NAND flash technology. CPUs store information on NAND (long-term memory) and use DRAM (working memory) to perform tasks. Also, GPUs use a specialized type of DRAM called high-bandwidth memory (HBM), which accelerates complex tasks like artificial intelligence by rapidly feeding data to processor cores.

Micron has benefited greatly from a critical supply shortage in memory chips fueled by the AI boom. However, the company ranks third in DRAM, HBM, and NAND market share after Samsung and SK Hynix, and it lacks a durable competitive advantage because memory chips are considered commodities, as wafers from different suppliers are interchangeable.

"We do not believe Micron has an economic moat," wrote William Kerwin at Morningstar. "We view DRAM and NAND as commodity-like products prone to market supply/demand dynamics and steady pricing erosion." However, Kerwin also thinks the AI boom will create a strong tailwind for the company in the medium term.

Micron reported strong financial results in the fourth quarter of fiscal 2026, which ended in September. Revenue increased 379% to $54 billion, driven by strong growth across every business segment. Non-GAAP net income soared to $33.42 per diluted share, an 11-fold increase from $3.03 per diluted share last year.

Micron should benefit as the AI build-out continues to drive demand for memory across GPUs, servers, and storage. Next year, the company expects volume production of its 512GB DDR5 DRAM server modules, which reduce operating power by 60% versus four 128GB modules. Micron also expects volume production of HBM4E, an enhanced version of the HBM4 memory it began shipping earlier this year.

So, why did President Trump's accounts sell Micron in August? I can only guess, but one possibility is concern that memory prices -- and Micron's earnings -- will decline when the supply shortage eases. The stock looks cheap today at 12 times earnings, but earnings have historically fallen sharply during industry downturns.

Meta Platforms: The stock President Trump's accounts bought in August

Meta Platforms owns the three most popular social media networks in terms of monthly active users in Facebook, WhatsApp, and Instagram. The company uses consumer data generated by those platforms to recommend content and target ads, creating a network effect that makes its social media properties increasingly engaging.

Meta Platforms reported mixed second-quarter financial results, missing estimates on the bottom line due to severance and legal expenses. Revenue increased 28% to $60.8 billion, driven by an increase in advertising impressions and price per ad. But GAAP diluted earnings fell 13% to $6.18 per diluted share, partly due to higher spending related to legal proceedings and severance costs.

However, Meta's AI spending -- from custom silicon to proprietary models -- is paying off, with increased ad impressions and prices. Also, the company recently introduced Muse, an AI agent that automates tasks for businesses and consumers. Morgan Stanley analysts believe Meta is uniquely positioned to be a winner in consumer AI agents due to its data.

So, why did Trump's accounts buy Meta in August? One possibility is the relatively cheap valuation. The stock was down nearly 30% from its high in August because investors were worried about heavy spending on AI. Shares have since rebounded, but still look attractive at 27 times earnings, as Wall Street expects 20% annual earnings growth over the next three years.

Should you buy stock in Micron Technology right now?

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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms and Micron Technology. The Motley Fool has a disclosure policy.

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