Micron Is Down 17% Over the Past Month. Is This AI Stock Still a Buy?

Micron (MU) has shed 17% over the past month as investors fret about excessive AI spending by tech companies. The Motley Fool argues the selloff is overdone and that MU remains a buy.

The bull case rests on hard numbers. MU's Q4 revenue jumped 380% to $54.2 billion, a figure that underscores how sharply demand for its memory products has accelerated. The article also contends that memory demand is outpacing supply, a backdrop that favors producers with pricing leverage.

On the spending debate driving the drawdown, the article points to evidence that major tech companies' AI infrastructure investments are generating substantial returns. That cuts against the "overspending" narrative weighing on the stock. S&P Global projects $1.3 trillion in AI infrastructure spending next year, which, if realized, would sustain the order flow feeding MU's growth.

Interpretation: a 17% pullback following a 380% revenue surge suggests the market is pricing sentiment risk rather than a deterioration in reported results. The disconnect between MU's fundamentals and its recent price action is the core of the dip-buying argument, though the thesis depends on hyperscaler spending staying on trajectory.