If I Had to Pick 1 Tech Stock to Hold Through the Next Recession, It Would Be This One

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 »

Chips on a blue-lit circuit board.
Image source: Getty Images.

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.

In other words, the China-fueled dip in Micron seems unjustified. The current result is a forward P/E ratio of 7, which makes it one of the most undervalued stocks in the entire market.

That absurd valuation won’t last forever. A stronger fiscal 2027 and customers with deep pockets give Micron more insulation from a recession than the average stock.

Should you buy stock in Micron Technology right now?

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*

Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

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*Stock Advisor returns as of October 17, 2026.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Microsoft. The Motley Fool has a disclosure policy.

If I Had to Pick 1 Tech Stock to Hold Through the Next Recession, It Would Be This One was originally published by The Motley Fool

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