Marvell Technology (MRVL) trades at a 0.6x PEG ratio with data center revenue accounting for over 70% of sales and growing 50% year-over-year, while Micron Technology (MU) offers an even cheaper 0.2x PEG with fiscal Q2 2026 revenue of $23.86B (up 196% YoY) and 2026 HBM supply already sold out under long-term contracts.
AI infrastructure buildout is driving both companies’ growth by creating sustained demand for custom networking silicon and high-bandwidth memory that smooths traditional memory-industry cycles.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Semiconductor stocks have ridden the AI wave to eye-popping heights. Data centers now devour chips for training and running large language models, pushing the sector’s valuations sky-high. Yet smart investors know not every high-flyer delivers lasting returns.
To find stocks to buy in today’s market, legendary investor Peter Lynch, who grew the Fidelity Magellan fund from $18 million to over $14 billion in assets — a 29% compound annual return — during his 14-year tenure, would likely reach for the same straightforward tools that any retail investor could grasp.
Lynch focused on understandable businesses with solid earnings growth and reasonable prices. One tool he leaned on heavily was the PEG ratio, his go-to screen for spotting growth stocks before the crowd caught on. It essentially asked how much are you paying for each unit of growth? For Lynch:
The analyst who called NVIDIA in 2010 just named his top 10 stocks. Get them here FREE.
PEG of 1.0x — fairly valued
PEG below 1.0x — potentially undervalued
PEG above 2.0x — what Lynch often viewed this as the “danger zone”
Now let’s apply that lens to some of today’s semiconductor leaders:
These are high-quality businesses, but based on Lynch’s framework, investors are paying steep premiums for their growth. Surprisingly, two AI-driven chip stocks sit at the opposite end of the spectrum — Marvell Technology (NASDAQ:MRVL) at 0.6x and Micron Technology (NASDAQ:MU).
Marvell Technology has quietly become a key supplier to the AI infrastructure buildout. Instead of competing head-on with giants like Nvidia (NASDAQ:NVDA), Marvell focuses on custom silicon, networking chips, and data center connectivity — the plumbing behind AI. Its chips handle the high-speed Ethernet connections and optical modules that let AI servers talk to one another at blistering speeds. AI demand has expanded the business rapidly.
