Three High Momentum Stocks to Buy Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy MU?
Source: NASDAQ.COM
- Momentum Stock Performance: Micron Technology (MU) has seen a 328.8% increase in stock price over the past year, indicating strong market demand and profitability, which enhances its leadership position in the memory products sector.
- Retail Sector Growth: Five Below (FIVE) has experienced a 199.7% stock price increase, reflecting the success of its value product strategy and further solidifying its competitive advantage in the U.S. retail industry.
- Mining Potential: Buenaventura (BVN) has achieved a 104.4% rise in stock price, indicating strong performance in Peru's polymetallic mining sector, which is expected to drive future profit growth for the company.
- Investment Strategy Effectiveness: The success rate of selecting momentum stocks based on the Driehaus strategy is high, with AAII research showing that strong earnings growth and beating estimates are key factors, further validating the effectiveness of this strategy.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 357.220
Low
235.00
Averages
336.12
High
500.00
Current: 357.220
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology Surpasses Earnings Expectations, Optimistic Outlook Ahead
- Strong Earnings Report: Micron Technology reported $23.9 billion in revenue for Q2 FY2026, a staggering 300% year-over-year increase, surpassing Wall Street's expectations of $18.7 billion, indicating robust market demand and pricing conditions.
- Significant Profit Growth: The company's earnings per share reached $12.20, nearly an 8-fold increase year-over-year, far exceeding analysts' expectations of $8.42, showcasing Micron's strong growth potential in the memory market.
- Optimistic Future Outlook: Micron anticipates revenue of $33.5 billion for the current quarter, a 3.6-fold increase from the previous year, with earnings guidance of $19.15 per share, reflecting strong confidence in future growth.
- Cautious Market Reaction: Despite the impressive earnings report, the stock retreated due to market concerns about its growth potential, with analysts suggesting a 55% upside in the stock price over the next year, indicating a potential underestimation of Micron's long-term growth prospects.
See More
Micron's HBM4 Mass Production Marks Technological Breakthrough
- Technological Breakthrough: Micron's HBM4 36GB 12-Hi memory has entered mass production, marking a significant shift as the company is no longer seen as a technological laggard, which is expected to enhance its competitiveness in the high-bandwidth memory market, particularly through its collaboration with Nvidia's Vera Rubin platform.
- Revenue Growth: Over the past year, Micron has benefited from supercycles in the DRAM and NAND markets, with revenue nearly tripling and gross margins exceeding 74.4%, indicating strong performance and improved profitability in the market.
- Strategic Customer Agreement: Micron has signed its first-ever five-year strategic customer agreement, providing greater market visibility and marking a significant shift from being viewed as a cyclical commodity to a high-tech AI growth stock, which is expected to lead to sustained revenue growth.
- Market Potential: Micron's HBM4 solution boasts more than double the bandwidth of HBM3 and a 20% improvement in power efficiency, and combined with its close partnership with Nvidia, it is anticipated to drive market share in the AI infrastructure space, further solidifying its position in the industry.
See More
Micron Technology: Surge in AI Memory Demand
- Stock Performance: Micron Technology (MU) has seen its stock rise nearly 300% over the past year, and despite a recent pullback, the current buying opportunity is viewed as excellent for long-term investment, reflecting strong market confidence in its future growth.
- Market Demand: Micron anticipates the high-bandwidth memory (HBM) market will expand from $35 billion in 2025 to $100 billion by 2028, indicating a rapid increase in demand for memory in AI computing units, showcasing significant future potential.
- Capacity Bottleneck: Micron's management indicated that they can currently meet only 50% to 66% of total demand, suggesting that supply constraints will persist until 2027, potentially leading to a long-term supply-demand imbalance in the market.
- Impact of Technological Innovation: While Google's TurboQuant algorithm reduces memory demand for certain applications, it does not eliminate the overall need for Micron's memory; instead, it may encourage companies to innovate further in AI models, thereby diversifying and sustaining memory demand.
See More
Micron Technology's Future Growth Potential is Huge
- Surging Memory Demand: Memory demand is expected to rise significantly through 2028, particularly with the high-bandwidth memory (HBM) market opportunity projected to expand from $35 billion in 2025 to $100 billion by 2028, indicating substantial market potential and investment opportunities.
- Strong Revenue Forecast: Micron anticipates next quarter's revenue to reach $33.5 billion, a significant increase from $23.9 billion this quarter and $13.6 billion the previous quarter, demonstrating the company's rapid growth trajectory and attracting investor interest.
- Capacity Bottleneck Issue: Despite strong demand, Micron's management indicated they can currently meet only 50% to 66% of total demand, suggesting that supply constraints will persist until 2027, potentially leading to price increases and intensified market competition.
- Impact of Technological Innovation: While Google's TurboQuant algorithm reduces memory demand for certain applications, it does not eliminate overall memory needs, and may instead encourage companies to innovate further in AI models, thereby sustaining long-term memory demand growth.
See More
Memory Stocks Plummet as Google's New Tech Raises Concerns
- Memory Demand Decline: Google's recent announcement of the TurboQuant compression technology, which can reduce AI model memory requirements by at least six times with 'zero accuracy loss,' raises concerns about future demand for memory chips, impacting companies like Micron.
- Micron Stock Plunge: Micron Technology's shares fell nearly 10% on Monday, marking a roughly 30% decline since its blowout earnings report on March 18, indicating market apprehension regarding its future prospects, especially following the new technology announcement.
- Diverging Investor Sentiment: While retail sentiment for Micron remains 'extremely bullish' on Stocktwits, sentiment for SanDisk and Western Digital is 'bearish,' reflecting differing market expectations and concerns over the NAND market's vulnerability.
- Analysts Optimistic on Long-Term Outlook: Despite short-term pressures, analysts remain bullish on Micron's long-term prospects, with 38 out of 43 analysts recommending 'Buy' or higher, and an average price target of $527.60 suggesting over 64% upside potential for the stock.
See More
US Stock Market Volatility and Oil Price Retreat
- Market Volatility: The S&P 500 is over 9% below its peak, while the Nasdaq 100 remains in correction territory, approximately 12% off its high, indicating investor concerns about economic prospects that could lead to further market adjustments.
- Oil Price Retreat: Following recent war-driven spikes, WTI crude has eased to $101.82 per barrel and Brent to around $111.44, reflecting a market that is beginning to alleviate concerns over supply disruptions, which may impact energy-related stocks.
- Policy Dynamics: Treasury Secretary indicated that the U.S. expects to restore freedom of navigation through the Strait of Hormuz over time via escort operations, while President Trump expressed willingness to end military actions against Iran even if the Strait remains closed, potentially easing short-term tensions.
- Investor Sentiment Shift: Despite extremely bearish retail sentiment towards the SPDR S&P 500 ETF Trust and Invesco QQQ Trust, futures surged sharply after reports of Trump’s willingness to end the Iran campaign, highlighting the market's sensitivity to policy changes and potential rebound opportunities.
See More
Micron Technology Surpasses Earnings Expectations, Optimistic Outlook Ahead
- Strong Earnings Report: Micron Technology reported $23.9 billion in revenue for Q2 FY2026, a staggering 300% year-over-year increase, surpassing Wall Street's expectations of $18.7 billion, indicating robust market demand and pricing conditions.
- Significant Profit Growth: The company's earnings per share reached $12.20, nearly an 8-fold increase year-over-year, far exceeding analysts' expectations of $8.42, showcasing Micron's strong growth potential in the memory market.
- Optimistic Future Outlook: Micron anticipates revenue of $33.5 billion for the current quarter, a 3.6-fold increase from the previous year, with earnings guidance of $19.15 per share, reflecting strong confidence in future growth.
- Cautious Market Reaction: Despite the impressive earnings report, the stock retreated due to market concerns about its growth potential, with analysts suggesting a 55% upside in the stock price over the next year, indicating a potential underestimation of Micron's long-term growth prospects.
See More
Micron's HBM4 Mass Production Marks Technological Breakthrough
- Technological Breakthrough: Micron's HBM4 36GB 12-Hi memory has entered mass production, marking a significant shift as the company is no longer seen as a technological laggard, which is expected to enhance its competitiveness in the high-bandwidth memory market, particularly through its collaboration with Nvidia's Vera Rubin platform.
- Revenue Growth: Over the past year, Micron has benefited from supercycles in the DRAM and NAND markets, with revenue nearly tripling and gross margins exceeding 74.4%, indicating strong performance and improved profitability in the market.
- Strategic Customer Agreement: Micron has signed its first-ever five-year strategic customer agreement, providing greater market visibility and marking a significant shift from being viewed as a cyclical commodity to a high-tech AI growth stock, which is expected to lead to sustained revenue growth.
- Market Potential: Micron's HBM4 solution boasts more than double the bandwidth of HBM3 and a 20% improvement in power efficiency, and combined with its close partnership with Nvidia, it is anticipated to drive market share in the AI infrastructure space, further solidifying its position in the industry.
See More
Micron Technology: Surge in AI Memory Demand
- Stock Performance: Micron Technology (MU) has seen its stock rise nearly 300% over the past year, and despite a recent pullback, the current buying opportunity is viewed as excellent for long-term investment, reflecting strong market confidence in its future growth.
- Market Demand: Micron anticipates the high-bandwidth memory (HBM) market will expand from $35 billion in 2025 to $100 billion by 2028, indicating a rapid increase in demand for memory in AI computing units, showcasing significant future potential.
- Capacity Bottleneck: Micron's management indicated that they can currently meet only 50% to 66% of total demand, suggesting that supply constraints will persist until 2027, potentially leading to a long-term supply-demand imbalance in the market.
- Impact of Technological Innovation: While Google's TurboQuant algorithm reduces memory demand for certain applications, it does not eliminate the overall need for Micron's memory; instead, it may encourage companies to innovate further in AI models, thereby diversifying and sustaining memory demand.
See More
Micron Technology's Future Growth Potential is Huge
- Surging Memory Demand: Memory demand is expected to rise significantly through 2028, particularly with the high-bandwidth memory (HBM) market opportunity projected to expand from $35 billion in 2025 to $100 billion by 2028, indicating substantial market potential and investment opportunities.
- Strong Revenue Forecast: Micron anticipates next quarter's revenue to reach $33.5 billion, a significant increase from $23.9 billion this quarter and $13.6 billion the previous quarter, demonstrating the company's rapid growth trajectory and attracting investor interest.
- Capacity Bottleneck Issue: Despite strong demand, Micron's management indicated they can currently meet only 50% to 66% of total demand, suggesting that supply constraints will persist until 2027, potentially leading to price increases and intensified market competition.
- Impact of Technological Innovation: While Google's TurboQuant algorithm reduces memory demand for certain applications, it does not eliminate overall memory needs, and may instead encourage companies to innovate further in AI models, thereby sustaining long-term memory demand growth.
See More
Memory Stocks Plummet as Google's New Tech Raises Concerns
- Memory Demand Decline: Google's recent announcement of the TurboQuant compression technology, which can reduce AI model memory requirements by at least six times with 'zero accuracy loss,' raises concerns about future demand for memory chips, impacting companies like Micron.
- Micron Stock Plunge: Micron Technology's shares fell nearly 10% on Monday, marking a roughly 30% decline since its blowout earnings report on March 18, indicating market apprehension regarding its future prospects, especially following the new technology announcement.
- Diverging Investor Sentiment: While retail sentiment for Micron remains 'extremely bullish' on Stocktwits, sentiment for SanDisk and Western Digital is 'bearish,' reflecting differing market expectations and concerns over the NAND market's vulnerability.
- Analysts Optimistic on Long-Term Outlook: Despite short-term pressures, analysts remain bullish on Micron's long-term prospects, with 38 out of 43 analysts recommending 'Buy' or higher, and an average price target of $527.60 suggesting over 64% upside potential for the stock.
See More
US Stock Market Volatility and Oil Price Retreat
- Market Volatility: The S&P 500 is over 9% below its peak, while the Nasdaq 100 remains in correction territory, approximately 12% off its high, indicating investor concerns about economic prospects that could lead to further market adjustments.
- Oil Price Retreat: Following recent war-driven spikes, WTI crude has eased to $101.82 per barrel and Brent to around $111.44, reflecting a market that is beginning to alleviate concerns over supply disruptions, which may impact energy-related stocks.
- Policy Dynamics: Treasury Secretary indicated that the U.S. expects to restore freedom of navigation through the Strait of Hormuz over time via escort operations, while President Trump expressed willingness to end military actions against Iran even if the Strait remains closed, potentially easing short-term tensions.
- Investor Sentiment Shift: Despite extremely bearish retail sentiment towards the SPDR S&P 500 ETF Trust and Invesco QQQ Trust, futures surged sharply after reports of Trump’s willingness to end the Iran campaign, highlighting the market's sensitivity to policy changes and potential rebound opportunities.
See More
