Micron Gains AI Memory Momentum as Trading Volume Ranks 42nd

On August 18, 2025, Micron Technology (MU) closed up 2.22%, with a trading volume of $1.5 billion, a 34.7% decline from the prior day, ranking 42nd in market activity. The stock’s performance reflects growing investor interest in its AI-driven memory solutions despite broader market volatility.

Micron’s strategic pivot toward high-bandwidth memory (HBM) has positioned it as a key player in the AI infrastructure boom. The company is ramping up HBM4 production, a next-generation product offering 20% higher power efficiency and 60% improved performance over prior versions. HBM3E shipments for 2025 are fully booked, with significant 2026 capacity already secured. This aligns with rising demand from data centers and AI platforms, where HBM’s ability to handle large-scale data transfers is critical. Analysts highlight that HBM revenue has surged to $6 billion annually, growing 50% quarter-over-quarter, even before HBM4’s full impact.

Financial metrics underscore Micron’s strengthening position. Gross margins have stabilized in the mid-30s, supported by a shift toward higher-margin HBM and disciplined inventory management. Days-of-inventory levels have consistently declined, contrasting with industry peers. While SK Hynix and Samsung hold larger HBM market shares, Micron’s market share is rising, aided by strong orders from AI clients and strategic partnerships with tech leaders like Google and Nvidia. Recent quarterly revenue increased 37% year-on-year to $9.3 billion, with a 15.5% sequential jump.

Valuation indicators suggest the stock remains undervalued. A forward P/E of 9.4x and a PEG ratio of 0.3–0.4x highlight a significant discount to peers like Analog Devices and Qualcomm, which trade at multiples 2–3x higher. Institutional confidence is also growing, with heavyweights like PRIMECAP Management and Lee Ainslie significantly increasing holdings. Earnings forecasts project a 50%+ annual EPS rise from FY25 to FY26, driven by multi-year HBM contracts and fixed-price agreements with top-tier clients.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 31.52% total return, with a 0.98% average daily gain. This reflects short-term momentum capture but underscores market volatility and timing risks inherent in such an approach.