Up 145% in 2025, This AI Infrastructure Stock Is Still Deeply Discounted

Core Insights - The article emphasizes the critical role of Micron Technology in the AI sector, highlighting its undervalued stock despite significant growth potential [3][4][6]. Company Overview - Micron Technology is a leader in memory and storage solutions, specifically in dynamic random-access memory (DRAM) and NAND flash chips, which are essential for AI operations [4]. - The company’s high-bandwidth memory (HBM) technology is crucial for pairing with AI accelerators, enabling the processing of large datasets required for AI model training [5]. Market Dynamics - Analysts predict that Micron's earnings will more than double to $16.68 per share this fiscal year, driven by increasing demand for AI data centers [6]. - Revenue is expected to grow by 62% over the next two years, supported by infrastructure expansions from major hyperscalers like Amazon and Google [6]. Valuation Metrics - Micron's stock trades at a forward P/E ratio of just 10, significantly lower than the market average for AI-related companies, which often exceed 40 [7]. - The company's price-to-earnings-to-growth (PEG) ratio is at 0.19, indicating that the stock is deeply undervalued relative to its growth prospects [7].