Marc Guberti, The Motley Fool
4 min read
Oil prices, rising interest rates, and 24-year highs for 10-year Treasuries can certainly make investors get defensive. However, that doesn’t mean you should exit stocks as quickly as possible. In fact, buying growth stocks when investors are fleeing in droves can lead to elevated long-term returns, if you buy the right stocks.
Although Micron Technology (NASDAQ: MU) has been battered in recent weeks and remains in the spotlight, it has become more attractive at current levels. Here’s why I would buy Micron and hold it through a recession.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Tech giants still have the capital and need for memory products
Recessions do not affect every person and business in the same way. Some enterprises can thrive in recessions, or at least maintain their market share, and Micron looks like one of them because of its large customer base.
For instance, Microsoft (NASDAQ: MSFT) is one of the many tech companies aggressively ramping up its AI infrastructure expenditures. The tech giant reported $35.8 billion in net income in its fiscal 2026 fourth quarter. It also had $76.8 billion in cash and cash equivalents.
That’s the type of profile Micron’s largest customers have. It’s akin to the K-shaped economy, a phenomenon that involves high-net-worth individuals and households propping up the economy. The AI boom is supported by the companies with the deepest pockets, which offers built-in recession protection. It’s not recession-proof, but Micron produces a vital product for the most innovative technology right now. Hyperscalers don’t seem to care how much they have to pay for it.
Micron expects a stronger fiscal 2027
It’s no secret that Micron has been posting incredible financial results amid the AI boom, but it’s easy to forget that type of success amid recession concerns. For starters, the chipmaker delivered 31% sequential revenue growth in its fiscal 2026 fourth quarter (379% year-over-year growth).
Micron also anticipates a stronger fiscal 2027, and that assertion is built on multi-year strategic agreements with large customers, not hype. Some of the recent pullback on Micron is based on a Chinese memory chipmaker saying that it has made significant progress in developing more efficient chips, but this reminds me of when DeepSeek caused an ill-guided AI stock meltdown in January 2025.
