Micron Technology: One of the Biggest Hidden Stocks of this Year

I believe Micron Technology(MU), a semiconductor producer, is a good investment because there is a long-term upside to the stock. Top U.S. semiconductor companies like AMD outsource their semiconductor manufacturing to Asian countries like China, but the U.S. and China’s relationship has soured which is causing the U.S. to focus on production here. To boost U.S. chip manufacturing, Micron has received a subsidy from the Biden administration which has allowed them to expand their market share in semiconductor production by investing $40 billion into building more chip-making factories in the United States.

With U.S. companies focusing on buying semiconductors in the United States, Micron's large market share will help them sustain long-term growth in sales. Subsequently, it will boost investor confidence in the stock which will lead to stock gains. Although Micron’s stock has dipped in the past year due to a decrease in computer demand caused by lifted lockdown restrictions, this provides an opportunity to invest in Micron because the slowdown in demand for semiconductors will only be temporary. Micron has fell from its peak of $82.05 at the end of March and is now currently $55.10. As our society becomes digitized, many companies in sectors such as healthcare, consumer goods, and national defense will require semiconductors in their products, and therefore, increase the necessity of Micron’s semiconductors.