Could This Be the Safest Artificial Intelligence (AI) Stock to Own Right Now?

5 days ago 3
  • Micron combines a debased net ratio with compelling semipermanent maturation prospects.

  • Its fastest-growing conception is besides its main gross driver.

  • The shortage of precocious bandwidth representation is 1 of the cardinal bottlenecks controlling the gait of the AI infrastructure buildout.

  • 10 stocks we similar amended than Micron Technology ›

Artificial quality (AI) stocks person been immoderate of the champion assets to ain implicit the past 5 years. But aft the compelling gains they've already produced, investors who haven't already been capitalizing connected the inclination whitethorn consciousness similar they missed their chance.

However, the AI accidental is inactive massive, and close now, there's 1 AI banal successful peculiar that looks ridiculously undervalued based connected its maturation imaginable and valuation. It trades astatine a guardant P/E ratio of 10, and it conscionable delivered gross maturation of much than 50% twelvemonth implicit year.

That banal is Micron (NASDAQ: MU), and with representation solutions gaining much traction, the institution has a coagulated runway for aboriginal gains.

AI spot   successful  AI infrastructure.

Image source: Getty Images.

AI accelerator chips are designed to process ample amounts of information quickly. But to bash that, they request that information stored adjacent and rapidly accessible, which demands high-end representation retention solutions similar the ones Micron provides.

Micron isn't the lone subordinate successful the industry, but it's 1 of the biggest, with a marketplace headdress approaching $400 billion. Its banal terms much than tripled implicit the past year, truthful it's not precisely the biggest concealed successful the investing world. However, its guardant P/E ratio is astir apt the lowest you volition find among AI stocks.

It's valued similar a low-growth banal portion delivering compelling maturation successful the economy's hottest industry. Micron delivered 56.7% year-over-year gross maturation successful its fiscal 2026 archetypal quarter, which ended Nov. 27, portion boosting its profits by 180.2%.

Considering that large tech companies person already committed to spending much wealth connected AI this twelvemonth than they did past year, Micron is poised to capitalize connected a increasing accidental and present exceptional returns.

The company's unreality representation concern portion astir doubled twelvemonth implicit twelvemonth and brought successful $5.3 cardinal of the company's $13.6 billion. It's the largest of Micron's concern units, which suggests that its gross maturation should proceed to accelerate.

Micron has issued an optimistic forecast for its fiscal Q2, and arsenic the unreality representation conception makes up much of the full business, it should assistance the company's wide gross maturation rate.

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