Micron forecasted a stronger fiscal 2027, and multi-year strategic agreements with key customers support that thesis.
Micron forecasted a stronger fiscal 2027, and multi-year strategic agreements with key customers support that thesis.
Oil prices, rising interest rates, and 24-year highs for 10-year Treasuries can certainly make investors get defensive. However, that doesn't mean you should exit stocks as quickly as possible. In fact, buying growth stocks when investors are fleeing in droves can lead to elevated long-term returns, if you buy the right stocks.
Although Micron Technology (MU -5.63%) has been battered in recent weeks and remains in the spotlight, it has become more attractive at current levels. Here's why I would buy Micron and hold it through a recession.
Tech giants still have the capital and need for memory products
Recessions do not affect every person and business in the same way. Some enterprises can thrive in recessions, or at least maintain their market share, and Micron looks like one of them because of its large customer base.
For instance, Microsoft (MSFT -1.93%) is one of the many tech companies aggressively ramping up its AI infrastructure expenditures. The tech giant reported $35.8 billion in net income in its fiscal 2026 fourth quarter. It also had $76.8 billion in cash and cash equivalents.
That's the type of profile Micron's largest customers have. It's akin to the K-shaped economy, a phenomenon that involves high-net-worth individuals and households propping up the economy. The AI boom is supported by the companies with the deepest pockets, which offers built-in recession protection. It's not recession-proof, but Micron produces a vital product for the most innovative technology right now. Hyperscalers don't seem to care how much they have to pay for it.
MU Micron Technology
$878.84-$52.40 (-5.63%)
NASDAQ · As of 4:00 PM ET 10/16/26
Averytin News Financial update.