Best semiconductor stock to buy in June: Micron Technology

By: Motiur Rahman
Motiur Rahman
Md Motiur enjoys researching how companies are solving challenges the world will face over the coming decades. In his… read more.
on Jun 1, 2021
  • Micron Technology’s stock is up more than 10% over the last two weeks.
  • The memory chips developer is poised for massive growth amid increasing demand in the market.
  • The recent rebound is a sign of things to come, which makes it a perfect time to buy MU stock.

Micron Technology Inc. (NASDAQ:MU) is one of the most exciting stocks in the semiconductor industry. The company manufactures DRAM and NAND microchips for the computing world. Shares of the company have recently bounced back after experiencing a massive pullback last month. Is it too late to buy Micron stock or should MU stock be bought in June? Let’s take a look at the technical and fundamental portions of the stock to evaluate a trading idea.

Invest in Micron Technology’s exciting growth story

Shares of Micron Technology are currently priced at a trailing 12-month P/E ratio of about 29.95. Earnings are expected to grow by more than 90% in the next 12 months, which explains why the company’s forward P/E ratio of 7.97 is so low. MU stock’s earnings will also grow at a compound annual growth rate of 63.66% for the next five years. This makes Micron one of the best growth stocks in the market. Its PEG ratio of 0.47 will be an exciting feature for growth investors.

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The company’s growth story will be driven by increasing demand in the DRAM and NAND markets, which are expected to experience annual growth rates of about 19% and 30% for the foreseeable future. Micron Technology is one of the leading providers of memory chips and is, therefore, well poised to benefit from this growth.

Source – TradingView

Technical overview

Technically, shares of Micron Technology appear to have recently bounced back after plunging to a 4-month low of about $76 last month. The stock has now recouped a significant chunk of the losses as it moves towards the 50% fib level. Fibonacci (fib) retracements show the level the stock price is at relative to the previous high or low during a price swing.

At the current level, the bulls will be motivated to ride the current recovery wave. They will target profits at around $88.87 or higher at $91.94. Key support levels can be found at $80.99 and $77.45.

Bottom line: buy MU stock’s exciting growth story on the rebound

In summary, shares of Micron Technology appear to have an exciting growth story. This will attract growth investors looking to invest in the rapidly growing DRAM and NAND markets. In the short term, MU stock appears to be on recovery after bouncing back from last month’s plunge.

MU stock has a consensus buy rating with a price target of $107 based on analysts polled by MarketBeat. This is a great opportunity to buy the stock before it becomes relatively expensive.

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