1 Dirt Cheap Artificial Intelligence Stock That Could Skyrocket in 2026

Core Viewpoint - Micron Technology is positioned as a key player in the memory chip market, with significant demand expected to drive growth, making it an attractive investment opportunity despite its current low valuation [2][8]. Company Overview - Micron Technology trades at a low valuation of 10 times forward earnings, significantly cheaper than the average big tech companies trading at about 30 times forward earnings [3]. - The company has reported strong revenue growth over the past two years, yet its stock remains undervalued due to the cyclical nature of the memory chip market [5][7]. Market Demand and Growth Potential - Wall Street analysts project a remarkable growth rate of 133% for Micron in the next quarter and 100% for fiscal year 2026, indicating robust demand for memory chips [7]. - The market opportunity for Micron's high-bandwidth memory (HBM) is expected to grow at a 40% compound annual growth rate (CAGR) to reach $100 billion by 2028 [10]. Production Capacity and Constraints - Micron's production capacity is currently maxed out, which poses a challenge in meeting the anticipated demand [10]. - Several new production facilities are under construction, including a fab facility in Idaho expected to start output in mid-2027, but these will not alleviate the production constraints expected in 2026 [11][12]. Financial Performance and Projections - Micron's gross margin is projected to reach an all-time high of 67% in Q2, which is expected to significantly boost earnings and profitability [13]. - The company is likely to benefit from soaring memory prices due to supply constraints, potentially leading to record margins this year [12][13].