10 Best Semiconductor Stocks to Buy for the AI Boom

5. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 107

Micron Technology, Inc. (NASDAQ:MU) is a leading global semiconductor company specializing in memory and storage chips, with its primary revenue driven by DRAM and additional exposure to NAND flash chips. Serving a diverse global market, Micron supplies chips for data centers, mobile devices, consumer electronics, industrial applications, and automotive use, leveraging its vertically integrated business model.

Micron Technology, Inc. (NASDAQ:MU) had a strong start to FY2025, with revenue, gross margin and EPS at or above the midpoint of the guidance range. The bulk of strength comes from data center revenue growing over 400% YoY and 40% sequentially, reaching a record level, with data center revenue mix surpassing 50% of the company’s revenue for the first time. MU also delivered record amounts of SSDs, while high-bandwidth memory (HBM) shipments were ahead of schedule, with revenue more than doubling sequentially. The company also rides the effects of Chips and Science Act, finalizing an agreement with the US Department of Commerce for an award of up to $6.1 billion to support advanced DRAM manufacturing fabs in Idaho and New York.

Management of Micron Technology, Inc. (NASDAQ:MU) provided detailed commentary on its HBM potential, which is central to the growth story, during the Q1 2025 earnings call. Here is what they said:

“The HBM market will exhibit robust growth over the next few years. In 2028, we expect the HBM total addressable market (TAM) to grow four times from the $16 billion level in 2024 and to exceed $100 billion by 2030. Our TAM forecast for HBM in 2030 would be bigger than the size of the entire DRAM industry, including HBM, in calendar 2024. This HBM growth will be transformational for Micron, and we are excited about our industry leadership in this important product category.”