Buy Micron Stock

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Buy Micron Stock

Jim Cramer Recommends Buying Micron Stock

Jim Cramer is a famous TV personality and a former hedge fund manager. According to him, Micron stock is totally worth buying even after its massive gains.

These days, one of the main challenges is to find good AI stocks. There are many good companies, but they are all sitting at record highs. So, there's a risk of buying at the top and then getting stuck if the AI bubble bursts. However, Jim Cramer says Micron stock is still worth buying.

Micron Share Price Up By 1400%

Micron's share price has been up by more than 1400% in the last 5 years. In the last year, the Micron share price has gained an upside of 485%. The reason this memory stock has gained so much is the supply chain imbalance in the memory market.

Micron makes DRAM and NAND flash memory. Just like AI data centers need a lot of GPUs, they also need tons of memory to save the data.

NAND storage is used for saving large-scale data sets. DRAM is also essential for AI models to respond quickly. Analysts think the demand for memory products will only rise as the AI models become more complex.

According to Cramer, Micron's share price can double once again before the AI boom eventually needs it. This forecast is based on the idea that data center spending won't slow down.

He also added that Micron stock is trading at a forward P/E of 6.7. This makes it cheap and a very affordable stock despite its high price.

The bottom line is that Micron's share price can continue to hit new highs as long as the AI buildup is ongoing. Based on this thesis, you can consider buying Micron stock for the long term.

However, the better strategy is to take small positions in Micron stock rather than going all in. The dollar-cost averaging strategy can be used to accumulate Micron shares.

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