Key Points
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Micron agreed to a $250 million commitment for the president’s “Trump Accounts.”
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A memory chip shortage has enabled Micron to raise prices and significantly improve profit and margins.
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Micron operates in a cyclical business and is currently riding the high end of the cycle.
- 10 stocks we like better than Micron Technology ›
There are plenty of AI stocks whose valuations have surged amid the current AI boom. There are now three companies worth at least $4 trillion, six companies worth at least $2 trillion, and 15 companies worth at least $1 trillion. And of the 15 companies worth at least a trillion, 13 are tech companies.
One of the newest members of the trillion-dollar club is Micron (NASDAQ: MU), which had a market cap of $1.07 trillion as of the market close on July 8. The stock is up more than 660% in the past 12 months and 200% this year, making investors a lot of money along the way — including President Donald Trump.
Trump’s 2025 financial disclosure showed that he owned between $1.67 million and $6.65 million in Micron stock. Should Trump’s stake in Micron be a sign that investors should follow his lead?
At the right place at the right time
Trump’s stake in Micron is noteworthy given the company’s $250 million commitment to the president’s “Trump Account.” But when you set that aside, the investment in Micron is a matter of striking while the iron is hot.
Micron is a memory chip maker and has found itself at the right place at the right time during the current AI boom. As AI hyperscalers such as Amazon, Microsoft, and Alphabet have spent billions building out data centers and other AI infrastructure, there has been a shortage of memory hardware that these data centers rely on to operate.
Given the high demand and short supply, Micron has been able to considerably raise prices and improve its profits and margins (though it has been accused of collusion and price-fixing). In the past year, Micron’s revenue has increased by 266%, while its net income has surged by 782%.
MU Revenue (Quarterly) data by YCharts
Unsurprisingly, the unique position Micron has found itself in — both financially and in terms of market position — has attracted many investors hoping to capitalize on it. And based on the president’s latest disclosure, he’s been one of those investors.
Should you follow Trump’s lead?
You shouldn’t invest in Micron simply because the president did. It’s true his stake in the company means he has a vested interest in making sure the stock does well, but you don’t want to blindly follow his moves simply for that reason.
You should, however, consider investing in Micron because its unique market position is bound to last for the foreseeable future. But even when supply meets demand, and Micron can’t command the premium it’s currently charging, the company will still have long-term agreements in place.
It’s operating in a cyclical industry that’s riding the high end, but it’s still a solid company with good long-term potential. It’s likely to be highly volatile along the way, but I trust its trajectory.
Should you buy stock in Micron Technology right now?
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Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Micron Technology, and Microsoft. The Motley Fool has a disclosure policy.
