Micron has been one of the best tech performers this year.
It was another stock market selloff on Friday, with the major indexes all plummeting. It’s a continuation of what has occurred over the past month or so, as investors de-risk as they brace for impact with Trump administration tariffs just around the corner. Also, some major companies, including Nike (NYSE:NKE) and FedEx (NYSE:FDX) shook investors with shaky outlooks based on tariffs and macroeconomic uncertainty.
The market even brought down Micron Technology (NASDAQ:MU), a company that actually posted excellent quarterly earnings and had a robust outlook. Micron stock was down about 8% on Friday to around $94 per share, amid the selloff.
Considering that Micron is one of the cheapest big tech stocks on the market already and has been one of the top performers in the sector already this year, this selloff could present investors with an excellent buying opportunity.
Data center revenue triples
Micron stock, even with Friday’s selloff, is still up 14% year-to-date, making it one of the top performing tech stocks. It is also one of the cheapest in the sector, with a P/E ratio of just 24 and a forward P/E of 14. Those are both below the median P/E on the Nasdaq Composite. Further, its five-year P/E-to-Growth (PEG) ratio is just 0.21, indicating a stock that is a bargain based on its long-term earnings expectations.
When you factor in its blowout earnings and robust outlook, you have a stock that should be on investors’ radar.
Micron, a leading manufacturer of memory and computer storage chips and drives, posted $8.05 billion in revenue in its fiscal second quarter, which was up 38% year over year. That beat estimates of $7.89 billion, although it was lower than the $8.71 billion the firm made in Q1 of 2025.
Micron generated net income of $1.58 billion, or $1.41 per share, which was nearly double the $793 million, or 71 cents per share from the same quarter a year ago. Adjusted earnings were $1.56 per share, which was better than the $1.42 adjusted EPS estimates.
The major revenue driver for Micron was its explosive growth in providing chips for AI data centers.
“Micron delivered fiscal Q2 EPS above guidance and data center revenue tripled from a year ago,” Sanjay Mehrotra, chairman, president and CEO of Micron Technology, said. “We are extending our technology leadership with the launch of our 1-gamma DRAM node.”
As Mehrotra mentioned, the data center revenue tripled and Micron’s line of HBM (high bandwidth memory) chips crossed the $1 billion mark in revenue.
Is this a buying opportunity?
Micron also provided guidance for the fiscal third quarter, calling for record revenue of $8.80 billion, which would be up 9.3% from Q2. However, the diluted EPS is projected to be $1.37 per share in Q3, down from $1.41 in Q2. The gross margin is anticipated to be down to 35.5%, from 36.8% in Q2. This indicates that the company projects higher expenses, and that could be part of the reason for the selloff.
But the CEO said the company is on track for record revenue in fiscal 2025 and “significantly improved” profitability in fiscal 2025.
The vast majority of analysts see Micron stock as a buy, with a price target of $130. That would represent a 36% increase over the current share price. Some Wall Street analysts did lower their price targets post-earnings, but most still had it pegged as a buy, even with slightly lower targets.
J.P. Morgan, for example, lowered expectations by $10, but still had the price target at $135 per share, which is higher than the median. Morgan Stanley raised its price target by $21 per share, tagging it at $112 per share.
It is hard not to like this stock, for its growth potential, leadership, and valuation, particularly after this selloff.
