Why Micron Stock Jumped 46% in the First Half of the Year

AI and chip stocks have been among the winners this year, despite a crash in April ing President Donald Trump's "Liberation Day" tariffs announcement

The memory chipmaker has continued to der strong growth, especially in artificial intelligence (AI) and the data center

It has also benefited from a return in overall bullishness among investors as the stock rose 46% through the first six months of 2025, according to data from S&P Global Market Intelligence

As you can see from the chart below, the stock overcame a sharp drop in April to come roaring back in May and June

Micron bounces back Micron is one of the more cyclically sensitive chip stocks, as the memory category is known for its price swings and inventory gluts, according to the economic cycle and sector-level metrics

For that reason, it trades at a substantial discount to most of the semiconductor sector, despite solid growth

Currently, it's valued at a trailing price-to-earnings (P/E) ratio of 22 and a forward P/E of just 10

Micron stock jumped in May and June as enthusiasm for the AI trade returned, with concerns the trade war cooling

Nvidia, which is now Micron's biggest customer, has since returned to all-time highs, nearly doubling off its low in April, and Micron dered a strong round of results

The company posted particularly strong results in the data center segment, which now makes up more than half of its revenue

Micron stock was mostly unchanged on the news, as expectations for the strong growth seemed to be baked into the previous surge

Image source: Getty Images

What's next for Micron After the surge through May and June, the stock has traded flat over the last couple of weeks

While Micron's growth will rely on continued demand for AI-related components, the company also benefits from being the only U

Manufacturer of memory chips at a time when the federal government is pushing for the reshoring of such industries, making it strategically valuable

Given its attractive valuation, there should be more upside for Micron stock, even with its cyclical history

Jeremy Bowman has positions in Micron nology and Nvidia

The Motley Fool has positions in and recommends Nvidia

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