Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Palantir by the End of 2025

Group 1: Micron Technology Overview - Micron Technology is a key player in the semiconductor industry, supplying memory chips including DRAM, NAND, and high-bandwidth memory (HBM) used in AI chips [2][3] - The company has significantly benefited from the increasing investment in artificial intelligence, with data center revenue growing over 400% year-over-year in its first quarter [4] - HBM chips now account for more than 50% of Micron's total sales, and the HBM market is projected to grow from $16 billion in 2024 to $100 billion by 2030 [4] Group 2: Financial Performance and Market Position - Micron's management is optimistic about AI's potential to transform its business, expecting substantial growth in the HBM market [4] - The strength of the data center business is expected to offset short-term weaknesses in the consumer segment, although management has lowered its forecast due to inventory reductions from PC and smartphone suppliers [8] - Analysts predict a 39.6% revenue growth for Micron in 2025, with shares currently trading at an enterprise-value-to-revenue ratio of 3.7, indicating potential undervaluation despite cyclicality risks [21] Group 3: Investment Considerations - The cyclicality of Micron's business model poses risks, as demand fluctuations can lead to negative returns on invested capital [5][6] - If Micron's stock multiple expands to 4 over the next year, it could see a stock price increase of about 50%, potentially reaching a market cap of around $150 billion [7] - The company faces competition in the HBM market, with only three companies producing these chips, suggesting that Micron is well-positioned to capture a significant share of the market growth [4]