This Incredibly Cheap Artificial Intelligence (AI) Stock Is a Terrific Bargain Right Now

Micro -technology (MU -0.77%, In this month, the Memory Specialist shares so far have April 1, as the Memory Specialist shares have fallen by 20%, and the tariff-fuel turmoil has a lot with the recent pullback of the stock. Reports suggest that Micron can increase the prices of its memory products between the tariff war running. This is because Micron has a global manufacturing footprint, including factory in the US, Japan, Taiwan and China.

However, the semiconductor is exempted from tariff by both the US and China (at least yet). Additionally, the Trump administration has put a 90-day break on most of its business partners applying mutual tariffs, which were otherwise subject to high tariff rates. In addition, the administration has exempted the import of memory chips and hard drives from China.

For example, Micron may not need to increase the prices of its offerings, a step that may have damaged demand as its customers would have had to struggle with increased costs. What’s more, the memory products of Micron are looking so strong that the company is finding it difficult to produce enough of them. This was evident from the company’s influential number in the previous quarter, as well as its bright approach to the present.

Let us closely look at the reasons that after its latest pullback, it looks like a smart thing due to purchasing micron stock.

Micron is very cheap to ignore right now

For a company that increased revenue in the previous quarter 38% year-on-year, as well as a 3.7x jumping in earnings, the evaluation of Micron makes it worth buying hands on the fist immediately. The company is trading on earning less than 17 times. Its further earnings are many out of 10 cheap.

Tech-laden 100 in Nasdaq Meanwhile, the index has a follower price-to-Kamai ratio of 27 and further earnings of 23 are several. Micron, therefore, is quite cheap now, given this unprecedented growth that it has been distributing in recent quarters.

Ycharts by MU Revenue (TTM) data

Even better, Micron is incredibly cheaper when we take into account its possible income. According to Yahoo in the stock, only 0.15 is priced/income-to-growth ratio (PEG ratio) depending on an estimated income increase in the next five years. finance. The PEG ratio is calculated keeping in mind the company’s future earnings growth capacity, and a reading of less than 1 indicates that a stock has been evaluated.

Therefore, the peg ratio of the micron suggests that it is very cheap, it can be a clock in the next five years, given the expected growth, AI infrastructure and AI workload is inspired by the deployment of equipment capable of running.

AI is determined to run a healthy growth in propagation memory demand

The high-bandwidth memory (HBM) used in graphics processing units (GPUs) to run Artificial Intelligence (AI) workload in micron data centers is benefiting from rapidly increasing demand for chips. The revenue of the company’s data center increased to three times the year by year, in which HBM alone with a record $ 1 billion accounting in quarterly revenue.

Micron says its HBM shipment was more than expectations. What is more, the company has sold its entire HBM capacity for 2025, and it currently “focuses on increasing HBM capacity in our existing manufacturing facilities to meet the requirements through 2026.” Another factor to note here is that Micron has reduced its total addressable market (TAM) estimate for HBM to $ 35 billion for 2025.

This figure is likely to be higher in the long run, with a third-party estimate HBM market size is approximately $ 86 billion. Therefore, there is still a lot of space in the data center business of Micron to increase in the long run behind solid HBM demand. But this is not the place where the company’s AI-related catalysts end.

Micron’s memory products are also used in smartphones and individual computers (PCs). The use of memory in both these applications is increasing thanks to AI. In particular, Micron says that the Dynamic Random Access Memory (DRAM) content in AI-Saksham PC is one-third of the average content used in PC last year. Meanwhile, flagship AI smartphones are using 50% more drama than 8 gigabytes (GB) of the DRAM seen in the 2024 model.

It is worth noting that the shipment of both AI-competent smartphones and PCs is expected to jump at an annual speed of about 35% through 2029. It can pave the way for a strong growth in the memory shipment of Micron in the long run, complementing healthy growth in the company’s data center business.

For example, the possibilities of micron technology seem stronger, and the valuation of semiconductor stock means that investors can buy it at very attractive levels right now, and they do not want to miss the opportunity because the company’s outstanding growth can help it to remove its recent recession and fly high in a long time.