15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip

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

Micron Technology, Inc. is a developer, designer, manufacturer, and supplier of storage and memory products. It operates in the Storage Business Unit, Mobile Business Unit, Compute and Networking Business Unit, and Embedded Business Unit. The company sells its products through distributors, direct sales forces, retailers, and independent sales representatives. The stock is up 6.78% in the last week against the S&P 500’s 1.13% gains and is on course to be an outperformer this year, especially in the second half.

Micron stock was hammered after the company gave poor guidance for the fiscal second quarter in December. The stock has been volatile since and has provided a couple of buying opportunities as well. As the Q2 earnings approach, the stock is slowly inching back to its December highs, and for good reason.

In the second half of the fiscal year (March onwards), the company is expected to enjoy strong demand for DRAM. The NAND oversupply is also set to diminish, which should help the company’s topline. These normalizing inventory levels have come just in time as the demand for Micron’s memory products in PCs and smartphones is expected to pick up.

On the flip side, with the demand picking up in low-margin products, the company expects its gross margins to go down sequentially. Due to the NAND oversupply, the manufacturing facility is also not operating at optimal levels, further eating into the margins. As AI spending continues unabated, Micron should keep enjoying strong demand for its DRAM products, helping it survive the downturns of the cyclical industry.