Micron Technology

The case for investing in Micron rests on strong and rising demand for its products, especially High Bandwidth Memory (HBM) chips, which are important for building data centres and supporting the wider growth of AI.

Micron is a global leader and the only major American manufacturer in the memory and data storage industry. It stands to benefit from the heavy investment being made in AI infrastructure in the US and around the world by companies such as Nvidia, Amazon and Meta.

Micron has the scale and financial strength to keep growing through what many see as a strong period for the memory market. Ongoing investment in advanced manufacturing and US-based production also adds to its strategic importance.

As demand for memory rises across AI servers, smartphones, cars and industrial equipment, Micron appears well placed to benefit over the next few years, while continuing to generate cash for future investment.

Micron’s main areas for improvement relate to its environmental impact. Making semiconductors uses large amounts of energy and water and some of the company’s sites are in areas of water stress.

Micron has made progress, including using renewable electricity in the US, but its operations remain resource-intensive and it has not yet set Scope 3 emissions targets.

There are also social and governance risks. Chip production involves hazardous chemicals, so strong health and safety standards are essential.

Micron’s global supply chain, including the sourcing of critical minerals, may also expose it to labour and human rights concerns. Executive pay is another area investors may want the company to keep under review.