Is Micron Technology the Most Underrated Artificial Intelligence (AI) Play of the Decade?
News Summary
Micron Technology's shares have surged 188% in 2025, yet the article suggests its rally could have a long way to go, positioning it as an underrated investment play in the artificial intelligence (AI) sector. The piece highlights that while companies like Nvidia, AMD, and Broadcom garner significant attention for AI processors, Micron, as a supplier of memory and storage chips, does not compete with them but rather grows alongside them. Micron's DRAM, NAND, and HBM solutions are crucial for efficient AI workload processing, forming an indispensable part of AI data center infrastructure. Reports from McKinsey and Goldman Sachs forecast multi-trillion-dollar investments in AI infrastructure over the next five years, with major hyperscalers committing substantial capital expenditures. This sustained AI infrastructure buildout is seen as a prolonged catalyst transforming the semiconductor industry from cyclical to one with more predictable, recurring demand, which is expected to drive significant revenue acceleration and profit margin expansion for Micron. Despite its current forward P/E of 14, the article deems Micron reasonably valued given its position in the high-bandwidth memory and storage market and the multi-trillion-dollar AI infrastructure buildout, making it a compelling long-term growth opportunity.
Background
Micron Technology is a global leader in memory and data storage solutions, specializing in the design, development, manufacturing, and sale of products such as DRAM (Dynamic Random-Access Memory), NAND flash, and NOR flash. These products are widely used in computing, networking, data centers, mobile devices, automotive, industrial, and consumer markets. Amidst the current artificial intelligence (AI) boom, demand for high-performance memory and storage solutions has surged. AI workloads, particularly generative AI, require massive amounts of data for training and inference, significantly driving the need for high-bandwidth memory (HBM) and low-latency storage. While GPUs from companies like Nvidia and AMD are at the core of AI computing, memory products from companies like Micron are foundational to these computing capabilities, ensuring data can be efficiently fed to and retrieved from processors. The buildout of AI infrastructure, including data center upgrades and expansions, is a major focus for global tech giants and governments. Reports from institutions like McKinsey and Goldman Sachs project immense growth in AI-related capital expenditures over the coming years, presenting significant growth opportunities for key players in the semiconductor supply chain, such as Micron.
In-Depth AI Insights
Is Micron's competitive advantage and pricing power in the AI memory market fully understood by the market? - While Micron is touted as an