Micron Technology (NASDAQ: MU) has delivered stellar returns to investors over the year, with its shares rising by an incredible 633% over this period.
However, the memory specialist has seen a steep 30% pullback from the 52-week high it reached last month
This drop in Micron stock seems quite surprising. After all, the company delivered blowout results just last month that should ideally have supercharged the stock. However, investors have been rotating out of memory stocks lately, as evidenced by the 23% drop in the Roundhill Memory ETF over the past month.
Savvy investors, however, should consider buying Micron following its recent pullback as it could become a long-term winner. Let’s see why. Micron will continue benefiting from the rapidly growing memory chip demand Memory is essential for compute and storage in artificial intelligence (AI) data centers, computers, smartphones, vehicles, and other applications.