Several leading semiconductor companies have experienced significant sell-offs in 2025. This year has proven challenging for technology stocks, with the semiconductor sector facing notable declines. As of market close on March 21, Nvidia’s shares had decreased by 12% this year, while Taiwan Semiconductor Manufacturing and Broadcom saw declines of 10% and 17%, respectively.
Conversely, Micron Technology has outperformed many of its peers in 2025, achieving a gain of around 12%. Despite these gains, Micron remains relatively unnoticed in the artificial intelligence (AI) sector, presenting an attractive investment opportunity.
Micron is becoming increasingly significant in AI workloads due to its advanced high-bandwidth memory (HBM) technology. This technology enables AI chips to process data much faster than traditional memory and storage solutions. As AI applications evolve beyond basic functions like chatbots to more complex areas such as autonomous driving, machine learning, and robotics, the demand for HBM is expected to grow substantially.
Micron’s growth trajectory is impressive, showing consistent improvement in revenue and profitability over recent years, driven by widespread AI adoption. In the second quarter of fiscal 2025, Micron reported encouraging earnings and provided optimistic guidance for future revenue and profitability, as stated by CEO Sanjay Mehrotra.
When evaluated against other leading chip stocks based on the forward price-to-earnings (P/E) ratio, Micron is the least expensive, indicating significant potential for investors. Despite trading near a 52-week low at $94 per share, the company’s record sales and improving financial health are not fully reflected in its current valuation.
Micron presents a compelling investment opportunity in the rapidly advancing AI chip industry. For those seeking long-term growth potential in AI-related stocks, Micron’s current market position may be highly attractive.