Core Insights - The article highlights Micron Technology as a compelling investment opportunity in the AI infrastructure sector due to its attractive valuation and significant growth potential [1][3][4] Company Overview - Micron Technology specializes in manufacturing compute and storage memory chips used in various applications, including data centers, personal computers, smartphones, and automotive components [3] - The company reported a 49% year-over-year revenue increase to $37.4 billion and a 537% rise in adjusted earnings to $8.29 per share for fiscal 2025 [4] Valuation Metrics - Micron's trailing earnings multiple stands at 24, while its forward earnings multiple is even more appealing at 14, with a price-to-sales ratio of 7, which is lower than other AI infrastructure stocks [5][6] - Analysts project that Micron's earnings are expected to double in the current fiscal year, indicating strong growth expectations [7] Market Opportunity - The capital spending on data centers is projected to grow at a compound annual growth rate (CAGR) of 40% from 2025 to 2030, potentially reaching between $3 trillion and $4 trillion by the end of the decade [10] - Micron estimates that the high-bandwidth memory (HBM) market revenue could double to $35 billion by 2025, with significant growth potential driven by increased data center capital expenditures [12] Competitive Position - Micron is currently gaining market share in the HBM space, controlling 21% of the market as of Q2, and is expected to increase its share to 23%-24% by the end of the year [14][15] - The company is well-positioned to benefit from the growing demand for HBM due to its partnerships with major AI chip designers and its next-generation HBM offerings [15]