After Smashing Earnings Expectations, Is Micron Technology the Hottest Artificial Intelligence (AI) Stock to Buy Right Now?

• Micron's sales rose by 46% in its most recent quarter.

• The memory solutions company still sees plenty more growth ahead.

• Micron looks relatively cheap compared to similar stocks.

• 10 stocks we like better than Micron Technology ›

One artificial intelligence (AI) stock worth watching right now is Micron Technology (NASDAQ: MU). The company provides businesses with memory and storage solutions. It may not seem like an obvious AI play, but its products are important pieces for companies that are building their AI capabilities and need to upgrade their infrastructure.

Micron's business has been booming due to AI-powered demand recently. The company widely outperformed expectations in its most recent quarter, and its shares have nearly doubled this year. At a market cap of $183 billion, this may seem like a fairly modestly valued business to invest in, especially given the growth potential it possesses.

Could Micron be the best AI stock to own right now?

On Sept. 23, Micro posted its fourth-quarter results for the period ended Aug. 28. It was an impressive performance for the tech company, whose revenue totaled $11.3 billion and rose by 46% year over year, which beat analyst expectations of $11.2 billion. Its adjusted earnings per share totaled $3.03, which was an even more impressive figure as Wall Street was looking for just $2.86.

Fiscal 2025 was a record year for the business and management still sees even more growth in the future. CEO Sanjay Mehrotra said that "as the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead." For the current quarter, the company's guidance calls for revenue of around $12.5 billion, which would be a 44% increase from the $8.7 billion it reported in the prior-year period.

With Micron's impressive rally this year, the stock is now trading at all-time highs. Tech companies offering storage solutions have been rising this year and Micron's gains have actually trailed those of both Seagate Technology and Western Digital, which are up around 160% this year. But with a more modest price-to-earnings multiple, Micron could make for a more appealing investment going forward.

Analysts also remain bullish on the stock, with the consensus analyst price target for Micron coming in at around $185, which implies an upside of around 12% from where it trades today.

Whether Micron can rise at a faster rate over the long term will ultimately depend on how strong demand will prove to be. According to analysts at Fortune Business Insights, the market for dynamic random-access memory (DRAM), which makes up the bulk of Micron's sales, will grow at a compound annual growth rate of 6.9% until 2032. It's a steady rate of growth but it may not be fast enough to get growth investors excited about the stock's potential to pay more of a premium for it.