Why Jim Cramer Believes Micron Technology (MU) is Poised to Thrive in the AI Boom

We recently highlighted a variety of stocks that Jim Cramer Discussed After a Major AI Event. Now, let’s see how Micron Technology, Inc. (NASDAQ:MU) compares to those stocks.

After the Consumer Electronics Show (CES) in Las Vegas, Jim Cramer had plenty to say about NVIDIA and other key stocks. He pointed out a noticeable split in the stock market, mentioning sectors like healthcare and food are struggling. “Safety isn’t on investors’ minds when thinking about today’s market,” he noted, sharing advice from a friend who reminded him that “safety’s last!”

Cramer also touched on a recent report about GLP-1 weight loss drugs. He emphasized that consumers could save around $400, which he described as a significant amount for many people.

He discussed the alcoholic beverages market, especially after the Surgeon General suggested cancer warnings on bottles. Cramer believes these warnings won’t stop consumers. Reflecting on Prohibition, he mentioned that it didn’t work back then, hinting that current warnings likely won’t change much either. He added that the stock decline in this sector may be more linked to high interest rates than to the warnings themselves.

Following a press conference by President-elect Trump, bond yields went up. Cramer feels tech stocks are more stable in this environment, while other sectors like healthcare are vulnerable. He remarked that even if healthcare professionals see some positives, they are still affected by bond market trends.

In our list of stocks mentioned by Jim Cramer, we included those he discussed on CNBC’s Squawk on the Street. We also noted how many hedge fund investors are interested in these stocks. Understanding hedge fund interests can help investors, as mimicking top picks has consistently outperformed the market. Our strategy focuses on selecting a mix of small-cap and large-cap stocks every quarter, yielding an impressive return since 2014.

Micron Technology, Inc. (NASDAQ:MU) is among the top three memory manufacturers globally, giving it an edge in the industry. Despite facing challenges in 2024, including slow consumer demand, a recent reveal by NVIDIA about its reliance on Micron’s HBM memory boosted its shares by nearly 17% this year. Cramer commented, “Micron struggled because it lacked good AI PCs, but now everyone realizes its high-bandwidth memory is essential.”

Overall, MU ranks 4th in Cramer’s recent stock discussions centered around AI. While Micron has potential, Cramer believes that other AI stocks might offer quicker returns. However, if you’re curious about an AI stock trading below 5 times its earnings, there’s plenty of information out there to explore.

Disclosure: None. This article is originally published at Insider Monkey.