Everybody and his uncle is looking for the “new” or “next” Nvidia (NASDAQ:NVDA). I’m telling you right now, it’s Micron Technology (NASDAQ:MU). The artificial intelligence hardware industry is booming and if you really want to participate and build wealth, look at Micron Technology stock.
Micron isn’t currently a member of the Magnificent Seven. However, if there’s a reshuffling of the Mag-7 or some other elite group replaces it, Micron should definitely be included. I assure you, once you’ve seen Micron’s recent financial results, you’ll be a believer.
Micron Technology Stock Decisively Breaks Through $100
Clearing the $100 level was a sticking point for many years, but the Micron Technology stock buyers finally achieved this in March. It’s not a bubble but a well-deserved milestone moment as Micron rides the AI-infrastructure wave to the top.
Just to recap, Micron doesn’t specialize in AI-compatible graphics processing units like Nvidia does. That’s good news for Micron, as it means that the company doesn’t have to compete directly with the all-powerful Nvidia.
Micron develops and sells memory chips, including AI-enabled high-bandwidth-memory (HBM) chips.
The company is actually collaborating with Nvidia; as Micron CEO Sanjay Mehrotra explained, “Our HBM3E product will be a part of Nvidia’s H200 Tensor Core GPUs, and we are making progress on additional platform qualifications with multiple customers.”
In the AI-hardware market, there’s nothing better than a partnership with Nvidia. Furthermore, Micron’s HBM chips are apparently selling like hotcakes. According to Mehrotra, “Our HBM is sold out for calendar 2024, and the overwhelming majority of our 2025 supply has already been allocated.”
Micron Swings to Profitability
Along with Micron’s collaboration with Nvidia, investors can celebrate the company’s long-awaited pivot back to a profitable profile. After five consecutive quarters of negative EPS, Micron posted positive EPS in the second quarter of fiscal 2024.
For that quarter, Micron expected to report an earnings loss of 28 cents per share while Wall Street predicted that the company would lose 25 cents per share. The actual result was a gain, not a loss, of 42 cents per share.
Micron’s top-line results should convince any skeptics to jump into the long side of the trade. Impressively, Micron generated $5.824 billion in Q2 FY2024, up 57.7% year over year versus $3.693 billion in the year-earlier quarter. Also, this result easily surpassed the company’s quarterly revenue forecast of $5.3 billion.
Micron Technology Stock: Invest in the ‘New Nvidia’ Today
Clearly, Micron knocked it out of the park with its recently released round of quarterly results. At the same time, Micron’s partnership with Nvidia looks like a win-win scenario for both companies.
So, is Micron the “new” or “next” Nvidia? And, should Micron be a Mag-7 (or maybe Mag-8) member? I’d say the answers are yes and yes.
No matter how you slice it, Micron is staging a powerful comeback with its fast-selling, AI-compatible HBM chips. Thus, now’s a great time to buy Micron Technology stock for a confident buy-and-hold position.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
