One observes, with a degree of detached amusement, that Micron Technology (MU 3.20%) has enjoyed a positively stellar year. A 326% ascent, you understand. Quite eclipsing the rather pedestrian 16% managed by the Nasdaq Composite. One begins to wonder if the excitement is entirely justified, or merely a collective bout of optimistic hysteria. This little investigation aims to ascertain whether a purchase at this juncture would be… prudent.
The AI Business: Not Entirely Frivolous
It appears Micron has stumbled, quite fortuitously, into the artificial intelligence arena. Their dynamic random-access memory (DRAM) and NAND flash memory, bless their little silicon hearts, are proving rather essential to these newfangled AI accelerators. From graphics cards to central processing units – a veritable bonanza, wouldn’t you say?
This, naturally, has created a shortage. A shortage of computing and storage memory. Designers, apparently, are locking down supplies of this specialized DRAM – high-bandwidth memory, they call it – well in advance. A sensible precaution, one imagines, when dealing with such a volatile market. And the sheer volume of data requiring storage for these AI contrivances… well, that’s led to a shortage of NAND flash as well. The good news for Micron’s shareholders is that this shortage isn’t expected to resolve itself anytime soon – not until 2028, if one is to believe the prognosticators. More production capacity is promised, of course, but that’s a matter of years, not months.
Consequently, pricing remains… favorable. TrendForce anticipates a 112% increase in NAND flash revenue this year, reaching $147 billion. The DRAM market, not to be outdone, is forecast to grow at an even more vigorous pace: 144% to $404 billion. And the overall memory market, they predict, will expand by another 53% in 2027, reaching a staggering $843 billion. One begins to suspect these numbers have been… embellished, but the underlying trend is undeniably upward.
Therefore, one anticipates this remarkable growth in both top and bottom lines will likely persist for the next couple of years. A rather gratifying prospect, wouldn’t you agree?
A Decidedly Attractive Proposition
Despite this rather impressive surge, Micron’s valuation remains, dare one say, attractive. A trailing earnings multiple of 24, considerably lower than the U.S. tech sector’s average of 42. And a forward price-to-earnings ratio of 12 suggests a substantial increase in earnings – hardly surprising, given analysts’ estimates of a 309% increase this fiscal year.
They anticipate a more modest 31% increase in fiscal 2027, but one suspects Micron could easily exceed that, given the catalysts discussed. Furthermore, the stock’s price/earnings-to-growth ratio (PEG ratio) of 0.18, according to Yahoo! Finance, indicates it is undervalued, considering its long-term potential. A reading below 1 suggests undervaluation, and Micron appears rather dramatically undervalued on that front. A top AI stock, even after its impressive gains, wouldn’t you say? It’s almost… vulgar, the opportunity.
Read More
- Gold Rate Forecast
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- HSR 3.7 story ending explained: What happened to the Chrysos Heirs?
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
- ETH PREDICTION. ETH cryptocurrency
- Uncovering Hidden Groups: A New Approach to Social Network Analysis
- Here Are the Best TV Shows to Stream this Weekend on Paramount+, Including ‘48 Hours’
- Games That Faced Bans in Countries Over Political Themes
- ‘Zootopia+’ Tops Disney+’s Top 10 Most-Watched Shows List of the Week
- The Labyrinth of Leveraged ETFs: A Direxion Dilemma
2026-02-27 03:33