Why Micron Technology Remains a True Bargain Buy Amid AI Infrastructure Boom

The Numbers Don’t Add Up—In Investors’ Favor

The AI sector has been on a tear, with major chip players like Nvidia, Broadcom, and Palantir commanding premium valuations that reflect their growth stories. Yet one semiconductor manufacturer has somehow managed to deliver staggering results while remaining undervalued: Micron Technology (NASDAQ: MU).

The contrast is striking. Micron reported a 57% year-over-year revenue surge and a 167% increase in adjusted earnings in its most recent quarter—yet it’s still valued at just 27x current earnings. For context, the tech-heavy Nasdaq-100 trades at 26x forward earnings, making Micron’s forward multiple of just 9 look absurdly cheap by comparison. Wall Street is projecting nearly fourfold earnings growth in the next fiscal year to $32.14 per share, yet the market hasn’t priced this trajectory into the stock.

Consider what’s ahead: Micron expects its current-quarter revenue to hit $18.7 billion—a 132% year-over-year jump—while adjusted earnings could climb more than fivefold. These aren’t speculative promises; they’re guided expectations from management. If the stock simply normalized to the Nasdaq-100’s average valuation multiple, upside could be substantial.

Memory Shortage Meets AI Demand Explosion

The real catalyst lies in the structural imbalance gripping the memory market. High-bandwidth memory (HBM)—the specialized chip type powering AI accelerators and data center processors—is being absorbed by the infrastructure buildout at breakneck pace. Meanwhile, traditional memory for smartphones and PCs is in acute shortage, driving prices significantly higher.

This dynamic is unlikely to reverse soon. Industry forecasts suggest memory supply will grow only 16-17% in 2026—well below historical rates—while HBM demand alone is projected to expand at 42% annually through 2033. The gap between supply growth and demand growth is essentially guaranteed to support elevated pricing power.

Memory manufacturers like Micron understand this environment and are being disciplined about capacity additions, which further supports the pricing environment. With AI data center spending potentially reaching $1.2 trillion by 2030, the tailwind is structural, not cyclical.

A Genuine Bargain in a Crowded AI Trade

After a 250% run-up over the past year, Micron might appear fully valued on a price chart alone. The valuation metrics tell a completely different story. Most mega-cap AI beneficiaries trade at elevated multiples precisely because the market has already priced in their growth. Micron appears to be the exception—a company executing at an elite level while still trading like a value stock.

The setup is particularly compelling for long-term investors who recognize that AI infrastructure spending will dominate capital allocation for years. Micron sits at the intersection of this mega-trend and genuine undervaluation, a combination rarely available in today’s market.