Shares of Micron Technology (MU) surged more than 15% Thursday after the company’s fiscal second-quarter earnings easily beat the consensus, driven by the AI craze. The company doubled down on these results with an upbeat outlook for the road ahead, too.

The memory and storage chip manufacturer grew revenue from just $3.69 billion this time last year to $5.82 billion. This was well above the analyst expectation of $5.34 billion.

The company also delivered on the bottom line with adjusted earnings per share of 42 cents. This was a dramatic turnaround from this time last year when Micron reported a steep loss of $1.91 per share.

CEO Sanjay Mehrotra Says that his company will prove to be one of the biggest beneficiaries of the AI boom across the entire semiconductor industry. The company has been able to raise prices across all memory and storage end markets thanks to tighter demand-supply dynamics, leading to the results seen in the most recent quarter.

But, Mehrotra says that this trend will persist through the remainder of this year and through all of 2025 – at which point the company is expected to produce record revenue and profitability.

For the current quarter, Micron is forecasting revenue of $6.6 billion (give or take $200 million) alongside adjusted earnings per share of 45 cents at the midpoint. Meanwhile, analysts were expecting just $5.98 billion and 8 cents per share.

While the stock surged today, a positive price trend has been pushing the stock higher for a while now. MU is up more than 30% in the past month and more than 91% since this time last year.

So, is this the right time for you to buy MU – or is there any reason to hold off? We’ve taken a look at this opportunity through the VectorVest stock analysis software and found 3 things you need to see before doing anything else.

MU May Have Poor Upside Potential, But Good Safety and Excellent Timing Make it a BUY

VectorVest is a proprietary stock rating system designed to simplify your trading strategy, eliminating human error, emotion, and guesswork. You’re given clear, actionable insights in just 3 ratings: relative value (RV), relative safety (RS), and relative timing (RT).

Using these ratings to analyze stocks is quick and easy as each sits on its own scale of 0.00-2.00 with 1.00 being the average. Better yet, you’re given a clear buy, sell, or hold recommendation for any given stock at any given time based on the overall VST rating. Here’s what we discovered for MU:

  • Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. It offers much better insight than a simple comparison of price to value alone. As for MU, though, the RV rating of 0.59 is poor. The stock appears to be overvalued after its recent run.
  • Good Safety: The RS rating is a risk indicator derived from a detailed analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. MU has a good RS rating of 1.24 right now.
  • Excellent Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s taken day over day, week over week, quarter over quarter, and year over year. The excellent RT rating of 1.71 reflects the strong performance MU has shown in both the short and long term.

The overall VST rating of 1.32 is very good for MU - and the stock is currently accompanied by a BUY recommendation. 

But before you make your next move one way or the other, take a moment to dig a bit deeper with a free stock analysis and learn more about this opportunity! It’s time to transform the way you trade for the better with VectorVest.

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Use VectorVest to analyze any stock free. VectorVest is the only stock analysis tool and portfolio management system that analyzes, ranks and graphs over 18,000 stocks each day for value, safety, and timing and gives a clear buy, sell or hold rating on every stock, every day.

VectorVest advocates buying safe, undervalued stocks, rising in price. MU is up 15% after delivering an impressive second-quarter performance and sparking investor excitement about the chip manufacturer’s long-term growth prospects. The stock itself may have poor upside potential, but it’s good safety and excellent timing are enough to justify buying today.

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