This Dirt Cheap Stock Is Expected to Quadruple Its Earnings This Year

Last year, shares of artificial quality (AI) spot banal Micron Technology (NASDAQ: MU) blasted higher by 239% -- making it 1 of the top-performing stocks successful the Nasdaq-100 index.

While this level of momentum mightiness suggest you've missed your accidental to currency successful connected the AI darling, what if I told you the banal remains ungraded inexpensive adjacent aft its parabolic rise? Let's excavation into the tailwinds fueling Micron banal close present and research wherefore the company's maturation is conscionable getting started.

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When it comes to headlines astir AI chips, likelihood are investors spot references to Nvidia and Advanced Micro Devices more than immoderate different company.

Nvidia's roots are successful designing graphics processing units (GPUs) -- the hardware hyperscalers usage to physique generative AI applications. The company's heavy roster of Hopper, Blackwell, and present Vera Rubin architectures person helped Nvidia execute a 92% marketplace stock successful the AI GPU space.

In a distant 2nd is AMD, whose MI400 accelerators person started to pull endeavor workloads arsenic large tech seeks to complement their Nvidia infrastructure with a lower-cost spot stack.

As hyperscalers similar Microsoft, Amazon, Alphabet, and Meta Platforms accelerate their AI superior expenditures, GPU designers specified arsenic Nvidia and AMD go the evident winners. But underneath the surface, Micron is possibly adjacent much strategically positioned for the AI infrastructure revolution.

My rationale is that arsenic much information centers are built and outfitted with GPU clusters, AI workloads volition standard arsenic developers present caller products and services. In turn, these dynamics make a bottleneck successful representation and retention solutions -- precisely the marketplace successful which Micron operates.

Given the secular tailwinds fueling request for HBM solutions, manufacture probe suggests that the prices for dynamic random entree representation (DRAM) and NAND chips could emergence arsenic overmuch arsenic 60% and 38%, respectively, during the archetypal quarter.

These dynamics springiness Micron tremendous levels of pricing powerfulness arsenic hyperscalers summation their AI infrastructure budgets to beryllium much inclusive of HBM systems. Against this backdrop, it's nary astonishment the institution has already reportedly sold retired of its 2026 HBM inventory -- hence, Wall Street's bullish forecast.