Analyst Explains Why Micron Technology (MU) ‘One of the Cheapest’ AI Stocks

Core Viewpoint - Micron Technology Inc (NASDAQ:MU) is highlighted as an attractive investment opportunity with substantial upside potential, particularly in the context of the growing AI market and its competitive positioning against major players like Nvidia [1][2]. Financial Performance - Micron is experiencing a 50% quarter-over-quarter growth in high bandwidth memory chip supply to Nvidia, indicating strong demand and market traction [2]. - The company trades at only 11 times forward earnings, suggesting it is undervalued compared to its growth potential [2]. - Micron has raised its revenue and earnings guidance significantly in recent quarters, with net margins expanding from 18% to 22% [2]. Market Position - Micron is gaining market share from Samsung, the largest player in the high bandwidth memory chip sector, which is contributing to its rapid growth [2]. - The comparison with Nvidia shows that while Nvidia trades at over 40 times forward earnings, Micron's growth rates are nearly comparable, making it a compelling investment in the AI hardware space [2].