From Chips to Data Centers, AI Investors See the Next Breakout in This Stock

• Micron is simply a starring shaper of machine representation products that are captious to the businesslike cognition of AI information halfway servers.

• Its revenue, nett income, and escaped currency travel are increasing astatine unthinkable rates owed to a shortage successful machine memory.

• It trades astatine a debased P/E ratio comparative to different AI hardware stocks.

• 10 stocks we similar amended than Micron Technology ›

Fears abound that the marketplace is successful an artificial quality (AI) bubble. But contempt what the talking heads are saying, a afloat 90% of respondents surveyed for The Motley Fool’s 2026 AI Investor Outlook Report who identified themselves arsenic AI investors said they either program to clasp oregon turn their positions successful AI stocks this year.

That paints a rosy representation of retail investors' views of the industry, but adjacent so, it's wide that a batch of AI stocks person go costly comparative to their earnings. However, for investors who are looking for caller opportunities to bargain now, there's 1 institution that sits astatine the nexus of the AI infrastructure buildout that's trading astatine an implicit bargain level: Micron Technology (NASDAQ: MU).

Micron designs and produces representation hardware for each types of machine systems -- including information halfway servers.

What's important to admit present is that AI systems run by processing tremendous amounts of data. And whether those servers are getting their processing powerfulness from clusters of GPUs from Nvidia or Advanced Micro Devices, or from application-specific integrated chips (ASICs) from Broadcom and its hyperscaler clients, they each inactive request accelerated entree to that information -- which means it indispensable beryllium stored connected chips similar those Micron produces.

According to information from TrendForce, the existent level of request for random entree representation (RAM) chips exceeds proviso by 10%. And speaking to NPR, a elder TrendForce probe exec said past period that prices for dynamic random entree representation (DRAM) -- the astir communal benignant of RAM -- are 50% higher than they were a 4th ago. Moreover, she expects prices to emergence by different 40% during the existent 4th and enactment elevated for the foreseeable future.

Micron produces the DRAM, RAM, and information halfway representation hardware that AI programs need. In particular, Micron has a portfolio of precocious bandwidth representation (HBM) products that diagnostic precocious show and powerfulness efficiency. The surging request for representation to enactment AI servers, combined with Micron's bevy of high-quality products, has created a cleanable storm, accelerating the company's growth.

In its fiscal 2026 archetypal quarter, which ended Nov. 27, Micron's gross roseate 56% twelvemonth implicit twelvemonth to $13.6 billion. Net income saw adjacent much awesome growth, surging 178% from $1.87 cardinal successful the prior-year play to $5.2 billion, portion operating currency travel roseate by 159.5% twelvemonth implicit twelvemonth to $8.41 billion. Over the past 4 reported quarters, it has achieved a nett income borderline of 28.2%. Finally, the company's currency reserves basal astatine $9.7 cardinal -- funds it tin usage to grow its operation.