Beyond Nvidia: This Under-the-Radar AI Stock Is Up Nearly 300% Over the Past Year

Core Viewpoint - Micron Technology has shown significant stock performance, with a nearly 300% increase over the past year, and is considered an excellent investment opportunity despite recent sell-offs [2][10]. Group 1: Market Demand and Supply - Micron is currently unable to meet the total demand for high-bandwidth memory (HBM), which is crucial for AI computing units [4][6]. - The total HBM market opportunity is projected to grow from $35 billion in 2025 to $100 billion by 2028, indicating a substantial increase in demand [5]. Group 2: Production Capacity Challenges - Micron's management has indicated that they can only meet between half and two-thirds of the current demand, leading to a significant bottleneck until production capacity can be increased by 2027 [6]. - Even after capacity increases, there may still be bottlenecks due to rising demand for computing units [6]. Group 3: Recent Developments and Innovations - A recent development involving Alphabet's TurboQuant algorithm has reduced memory demand by six times for certain applications, which may initially seem detrimental to Micron's investment thesis [8][9]. - However, this innovation may allow companies to enhance their AI models without facing memory shortages, suggesting that demand for memory will persist but in different capacities [9]. Group 4: Financial Performance and Projections - Micron expects to generate $33.5 billion in revenue next quarter, a significant increase from $23.9 billion this quarter and $13.6 billion the previous quarter, indicating strong growth potential [10].