This Dirt Cheap Stock Is Expected to Quadruple Its Earnings This Year
- Finance
ThePostMaster- 0
- 10 minutes read
Last year, shares of artificial intelligence (AI) chip stock Micron Technology (NASDAQ: MU) blasted higher by 239% — making it one of the top-performing stocks in the Nasdaq-100 index.
While this level of momentum might suggest you’ve missed your opportunity to cash in on the AI darling, what if I told you the stock remains dirt cheap even after its parabolic rise? Let’s dig into the tailwinds fueling Micron stock right now and explore why the company’s growth is just getting started.
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When it comes to headlines about AI chips, odds are investors see references to Nvidia and Advanced Micro Devices more than any other company.
Nvidia’s roots are in designing graphics processing units (GPUs) — the hardware hyperscalers use to build generative AI applications. The company’s deep roster of Hopper, Blackwell, and now Vera Rubin architectures have helped Nvidia achieve a 92% market share in the AI GPU space.
In a distant second is AMD, whose MI400 accelerators have started to attract enterprise workloads as big tech seeks to complement their Nvidia infrastructure with a lower-cost chip stack.
As hyperscalers like Microsoft, Amazon, Alphabet, and Meta Platforms accelerate their AI capital expenditures, GPU designers such as Nvidia and AMD become the obvious winners. But underneath the surface, Micron is perhaps even more strategically positioned for the AI infrastructure revolution.
My rationale is that as more data centers are built and outfitted with GPU clusters, AI workloads will scale as developers introduce new products and services. In turn, these dynamics create a bottleneck in memory and storage solutions — precisely the market in which Micron operates.
Given the secular tailwinds fueling demand for HBM solutions, industry research suggests that the prices for dynamic random access memory (DRAM) and NAND chips could rise as much as 60% and 38%, respectively, during the first quarter.
These dynamics give Micron enormous levels of pricing power as hyperscalers increase their AI infrastructure budgets to be more inclusive of HBM systems. Against this backdrop, it’s no surprise the company has already reportedly sold out of its 2026 HBM inventory — hence, Wall Street’s bullish forecast.
