We recently published a list of Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other semiconductor stocks tumbling on China H20 chip sale ban.

Semiconductor manufacturers are at the forefront of the technological battle, especially in the context of China’s rapid tech developments. One would have thought President Trump would take it easy on the chipmakers owing to their critical position in the US and global tech infrastructure.

However, investors are now finding out that semi stocks aren’t immune to tariffs, with the latest round of tariffs expected to cost manufacturers around $1 billion. This cost will be incurred through lost sales, increased regulatory compliance, and elevated supply chain costs.

Uncertainty regarding the exact details of the tariffs continues to cause chaos in the market. Chip stocks are sliding as the leading chipmaker, led by Jensen Huang, finds its H20 chips banned from export to China. As the leading chipmaker tries to steer its way out of the crisis, other companies that rely on this giant for business are also trying to figure out what to do.

We decided to take a look at such stocks and see if they offer value. Remember that the H20 chips were made specifically for China, and a ban on selling them is only a temporary headwind, not something that threatens the company’s moat.

To come up with the list of semiconductor stocks worth buying on the China H20 chip sale ban, we considered stocks that are an integral part of the semiconductor supply chain and ranked them by hedge fund interest in their stocks.

A close-up view of a computer motherboard with integrated semiconductor chips.

Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 94

Micron Technology, Inc. is a developer, designer, manufacturer, and supplier of storage and memory products. It operates in embedded business unit, compute & networking business unit, storage business unit, and mobile business unit segments.

Earlier this year, Micron became a key supplier for the RTX 50 Blackwell GPUs. There is a realization that memory is a bottleneck for faster data processing, so any improvement in bandwidth will be a positive for the memory makers like Micron. Google just confirmed that its latest hypercomputers will run on its tensor processing units, which are memory-intensive. Micron stock shot up after this news, which confirms how the company is ideally placed to benefit from such developments.

Having said all that, the cyclical nature of the sector and the fear of tariffs and trade war mean the stock has significantly underperformed in the last year, down 41% during that period. There are reasons to believe this will change. The high-bandwidth memory is by far the strongest tailwind for the company. Even though it looks like Donald Trump’s tariffs are negatively impacting the sector, we believe this is a buying opportunity as, sooner or later, Micron will be protected by the same administration owing to its critical position in the semiconductor supply chain.

Overall, MU ranks 2nd on our list of semiconductor stocks tumbling on China H20 chip sale ban. While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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