Micron insider Teyin Liu just bought $7.8 million worth of MU stock. Should I buy shares too?

Recent information strongly indicates that Micron Technology (MU) is well positioned to continue benefiting greatly from the explosive growth of artificial intelligence (AI) for at least the next two years. Meanwhile, the Street is clearly quite bullish on the name, and despite the stock’s huge rise, its valuation remains low. Finally, board member Teyin Liu recently bought 23,200 MU shares for $7.8 million, showing that Micron’s prospects look very positive to an insider.

In light of these points, investors may want to consider buying Micron stock. Let’s take a closer look.

Micron specializes in providing computer memory solutions used in data centers and computers, including PCs. A key component of the company’s recent growth has been the powerful and growing demand for its high-bandwidth memory (HBM) offerings, which are widely used in AI chips. Micron is a major supplier of HBM to Nvidia (NVDA) and AMD (AMD), two of the leading manufacturers of these semiconductors. Micron’s upcoming HBM product, HBM4, offers “industry-leading bandwidth and power efficiency,” as Zacks reported last month. Additionally, the company should be boosted in 2026 by powerful demand for servers using its “high-capacity server DRAM and solid-state drives (SSD) for data centers.”

In Micron’s quarter ending in November, revenue rose 21% compared to the same period a year earlier to $13.64 billion. Meanwhile, net income soared a whopping 64% year-over-year (yoy) to $5.24 billion.

Over the last 52 weeks, MU stock has skyrocketed an incredible 264%. Meanwhile, over the past month, the stock is up an impressive 44%. However, despite the huge rally in MU shares, the name continues to change hands with an extraordinarily low price-to-earnings (P/E) ratio of 11.3 times. Given Micron’s tremendous earnings growth and its ability to continue capitalizing on the explosive growth of AI, MU remains extremely cheap.

The memory chip shortage is likely to continue until 2027 as companies in the sector are focusing on meeting the huge demand for HBM, Micron executive vice president of operations Manish Bhatia said. Bloomberg recently. “The shortages we’re seeing are really unprecedented,” Bhatia said. Meanwhile, the shortage caused HBM prices to rise as much as 60% in 2025, helping Micron’s profits and margins rise dramatically.

Meanwhile, Christopher Moore, vice president of Micron’s marketing, mobile and client business unit, recently stated that the global memory shortage will not ease until 2028. Consequently, with the AI ​​boom expected to continue in the coming years, Micron should continue to benefit from rising prices for its core products and extremely high profit growth for at least the next two years.

Providing evidence supporting Micron’s claims, an executive at technology research firm IDC predicted in December that the impact of the shortage would last “well into 2027” and could result in “a potentially permanent strategic reallocation of global silicon wafer capacity.” In addition, he described hyperscalers’ demand for HBM as “voracious.”

MU’s massive stock price gains indicate that the Street has become very bullish on the name. Additionally, many sell-side analysts are clearly jumping on the Micron bandwagon. Wells Fargo recently raised their price target on MU to $410 from $335. Similarly, Citi raised its price target to $385 from $330, while Barclays weighed in with an increase to $450 from $275. Currently, Micron shares are trading around the $397 level, so these price target increases suggest that analysts believe Micron will continue to benefit prolifically from strong industry momentum in the short to medium term.

The recent large insider buying is also bullish for MU stock. As noted above, Micron CEO Teyin Liu recently spent $7.8 million on the company’s stock. As a member of the board of directors, Liu likely knows much more about the company’s prospects and prospects than those not directly involved with it. So, this fairly large purchase certainly bodes well for the future performance of MU stock.

At the time of publication, Larry Ramer had a position at: MU. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com