Britons are all over the S&P 500 right now. I’ve just checked AJ Bell‘s list of most bought stocks and five of the top 10 are listed on the US index. Unsurprisingly, given all the hype around its IPO, the UK’s number one buy is Elon Musk’s Space Exploration Technologies Corporation, best known as SpaceX.
Big tech’s in demand, with Microsoft, Netflix and Nvidia numbering among the top-10 purchases. The fifth isn’t as well known, but that’s clearly changing, because it’s now the second most-bought stock of all in the UK, even outstripping Rolls-Royce. Its name? Micron Technology (NASDAQ: MU). So what’s the big deal?
What’s the big deal with Micron Technology?
In case you hadn’t guessed, it’s got something to do with artificial intelligence. Micron builds digital memory and data storage chips such as DRAM and NAND. The AI boom and the data centre explosion has caused massive memory shortages, and chip prices are rocketing.
In 2024, Micron generated net income of $778m. In 2025, it flew to $8.54bn. No wonder investors are all over it. However, full-year numbers have been bumpy as this list shows:
- 2025 – £8.54bn
- 2024 – £778m
- 2023 – £5.83bn
- 2022 – $8.69bn
- 2021 – $5.86bn
That massive 2024 drop-off was down to huge oversupply of PCs, smartphones and data centre servers, as the Covid lockdown buying surge unravelled, and rising inflation hit spending on electronics. This forced Micron to slash production and prices. The AI boom changed that.
Today, investors are fretting over a potential AI bubble and the impact of Iran war on the oil price and inflation. Higher interest rates would drive up borrowing costs and reduce the value of growth companies’ future earnings in real terms.
The Micron share price has dropped 18% in the last month. Many UK investors are doubtless viewing this as a buying opportunity, but it’s not exactly a bargain. The stock’s still up a ridiculous 790% over 12 months. The price-to-earnings ratio’s a dizzying 129. Its market-cap is just over $1trn. A minnow it isn’t.
Is it just too expensive?
Another concern is that Micron’s revenues come from a small group of AI hyperscalers that are spending money at what may be unsustainable rates. An AI spending slowdown would hit Micron like a battering ram.
That said, Micron’s revenues hit a record $37.4bn in 2025. They’re forecast to hit $108bn in 2026 and possibly $250bn in 2027. Those are stunning figures.
Analysts are bullish. The 46 brokers offering one-year share price forecast produce a consensus target of $1,569. If correct, that’s up 58% from today. Now look at these stock ratings:
- Strong Buy: 41
- Buy: 9
- Hold: 4
- Sell: 0
- Strong Sell: 0
It’s easy to understand the excitement but if the AI bubble bursts or inflation takes off, things could end badly. I still think Micron’s worth considering, but only for tech-hungry investors who understand the risks.
Should you invest £5,000 in Micron Technology right now?
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Harvey Jones owns shares in Nvidia and Rolls-Royce Holdings.
