Should You Buy Micron Before 2027?

Core Insights - The focus on artificial intelligence (AI) often overlooks the high-bandwidth memory (HBM) segment, which is crucial for GPUs and chips [1] - Micron Technology is one of only three companies globally capable of producing HBM at scale, with demand expected to grow tenfold in the next decade [2][5] - The memory market is experiencing a significant upswing, with Micron's revenue reaching $13.6 billion in the latest quarter, up from $8.7 billion a year ago [3] Financial Performance - Micron's operating cash flow improved to $8.4 billion compared to $3.2 billion for the same period last year, indicating strong financial health [3] - The company's forward price-to-earnings (P/E) ratio is just under 11, significantly lower than the tech industry average of 26, suggesting that Micron's stock is undervalued [4] Market Position and Demand - The demand for HBM is expected to remain strong, with Micron's specialization in this technology providing a competitive edge [5][6] - The limited supply of HBM will not be resolved for several years, allowing Micron to potentially raise prices and maintain its market position [6] - Micron's customers include major AI companies like Nvidia and AMD, further solidifying its role in the AI ecosystem [8]