This Incredibly Cheap Artificial Intelligence (AI) Stock Is a Terrific Bargain Right Now

Core Viewpoint - Micron Technology is experiencing a significant stock decline in April, attributed to tariff-related issues, but the company has strong demand for its memory products and attractive valuation metrics that suggest potential investment opportunities [1][3][15] Group 1: Stock Performance and Valuation - Micron's shares have dropped 20% in April, influenced by tariff concerns [1] - The company reported a 38% year-over-year revenue increase and a 3.7x jump in earnings in the previous quarter, with a current trading valuation of less than 17 times trailing earnings and a forward earnings multiple of 10 [5][6] - The PEG ratio of Micron is 0.15, indicating it is undervalued based on projected earnings growth over the next five years [8][9] Group 2: Demand for Memory Products - There is a strong demand for high-bandwidth memory (HBM) chips, particularly for AI workloads in data centers, with HBM revenue reaching $1 billion in a recent quarter [10][11] - Micron's HBM shipments exceeded expectations, and the company has sold its entire HBM capacity for 2025, with plans to increase capacity through 2026 [11] - The total addressable market for HBM is estimated to be $35 billion for 2025, with projections suggesting it could grow to nearly $86 billion by 2030 [11][12] Group 3: AI Impact on Memory Usage - The use of memory in AI-enabled PCs is increasing, with DRAM content in these devices being a third more than average last year [13] - AI smartphones are expected to use 50% more DRAM than the 8 GB seen in 2024 models, indicating a rising trend in memory demand [13] - Shipments of AI-capable smartphones and PCs are projected to grow at an annual rate of almost 35% through 2029, which will further boost Micron's memory shipments [14]