Should You Buy Micron Before 2027?

• Micron is 1 of 3 companies susceptible of producing high-bandwidth representation astatine scale.

• Shares of the specialty chipmaker are up astir 250% successful the past 12 months.

• Micron's customers are the world's biggest AI companies, including Nvidia and AMD.

• 10 stocks we similar amended than Micron Technology ›

While the bulk of headlines regarding artificial quality (AI) absorption connected Nvidia, Advanced Micro Devices, and Alphabet, 1 overlooked conception is high-bandwidth representation (HBM).

Graphics processing units (GPUs) and chips necessitate monolithic amounts of memory, and Micron Technology's (NASDAQ: MU) HBM capabilities are gathering this demand. One crushed investors should see buying Micron earlier 2027 is that determination are lone 3 companies successful the satellite that tin nutrient HBM astatine scale, and the request for this specialized representation is expected to turn tenfold successful the coming decade.

The representation marketplace was depressed and declining for years, but present Micron is connected a multi-year upswing. Revenue successful Micron's latest 4th was $13.6 cardinal compared to $8.7 cardinal a twelvemonth ago. Operating currency travel besides improved significantly, up to $8.4 cardinal versus $3.2 cardinal for the aforesaid play past year.

The banal is mostly undervalued compared to different AI-related companies. Micron's existent guardant price-to-earnings (P/E) ratio is conscionable nether 11 arsenic of Jan. 9. That's good nether the tech manufacture mean of 26. Micron banal has risen astir 250% successful the past 12 months.

Micron specializes successful HBM, a highly specialized exertion that requires important superior concern and refinement. This is wherever Micron genuinely distinguishes itself from its competitors. There aren't galore companies that service this niche, and immoderate caller contention would request years to drawback up.

The institution has the powerfulness to rise prices based connected this constricted proviso and ever-increasing demand. This deficiency of proviso contented won't beryllium resolved for astatine slightest a fewer much years, either. Micron investors clasp a batch of powerfulness successful that regard. Investors should see buying Micron present to instrumentality vantage of its competitory edge.

Before you bargain banal successful Micron Technology, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Micron Technology wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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