Amidst currently high valuations for tech stocks and increased market volatility, identifying assets with long-term investment value has become a focal point for investors. This article will delve into an analysis of two tech companies regarded as potential long-term winners: memory chip manufacturer Micron Technology (MU) and independent advertising demand-side platform The Trade Desk (TTD).
Micron Technology is one of the world’s leading manufacturers of memory chips. Like the broader memory market, its business follows cyclical patterns of boom and bust. After experiencing a sharp revenue decline in fiscal year 2023 (ended August 2023) due to the end of a market growth cycle, Micron staged a remarkable rebound in fiscal years 2024 and 2025, with revenue surging by 62% and 49% respectively, fueled by the artificial intelligence boom injecting strong momentum into its business.
The core driver of this growth is the explosion in AI applications. To handle the latest AI applications, data centers globally are undergoing large-scale infrastructure upgrades, generating robust demand for Micron’s high-bandwidth memory chips and solid-state drives.
Analysts suggest that while Micron typically follows the boom-and-bust cycles of the memory market, the current growth cycle driven by the expanding AI market could persist for several years. From fiscal year 2025 to fiscal year 2028, analysts project the company’s revenue and earnings per share to grow at staggering compound annual growth rates of 39% and 78%, respectively. Considering the stock currently trades at only 13 times this year’s expected earnings, such a growth outlook makes its valuation appear quite attractive.
The Trade Desk is a world-leading independent advertising demand-side platform. Its core business involves facilitating the automated buying of advertising inventory across desktop, mobile, and connected TV platforms. Despite global macroeconomic headwinds between 2023 and 2024, including inflation, high interest rates, and geopolitical conflicts, The Trade Desk demonstrated strong growth resilience, with revenues increasing by 23% and 26%, respectively.
The company’s rapid expansion is fueled by advertisers diversifying their strategies. To maintain this growth momentum, The Trade Desk is actively rolling out more AI-driven tools and new data tracking solutions.
From 2024 to 2027, analysts project The Trade Desk’s revenue and earnings per share to grow at compound annual growth rates of 16% and 22%, respectively. While the stock might not be considered cheap at 30 times this year’s expected earnings, it is successfully carving out a defensible niche within the continuously expanding digital advertising market, making its long-term value not to be underestimated. For investors seeking long-term positioning in the tech sector, these two companies represent core players in the critical tracks of hardware infrastructure and software services, respectively.
