Micron's Biggest Long-Term Growth Catalyst Has Nothing to Do With AI Data Centers
Yahoo Finance ·
Micron Technology ( MU 1.05% ) has emerged as one of the top AI stocks . It's up by more than 700% over the past year, thanks to strong demand for its memory and storage products from AI data centers. Those facilities need huge volumes of Micron's chips to efficiently handle AI workloads, but a new wave of products may need such chips even more. During the company's fiscal 2026 third-quarter call on June 24, CEO Sanjay Mehrotra told investors that humanoid robots are a much more promising opportunity for Micron than AI data centers. That may sound hard to believe right now, especially since Micron more than quadrupled its revenue year over year thanks to data center sales. However, the premise is worth exploring. Some investors have shied away from the semiconductor trade due to the industry's cyclical history. The general concept is that at various points, rising demand for a particular type of chip leads to a shortage, which drives prices up. The chipmakers supplying those products book higher profits, but they also rush to boost their production capacity so that they can sell as many of those chips as possible. "Rush," however, is relative. It can take a couple of years to get new chip fabrication facilities online.
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