Forget Nvidia: Micron Is Up 330% in a Year and Still Looks Cheap

"MU stock is up 330% over the past year. The AI rally came out of nowhere, and the memory shortage came even faster. It took only two or so weeks for the RAM shortage to become the talk of the town in tech circles."

"TrendForce's recent report is explicit that both DRAM and NAND are being pulled by AI and data center demand, and that this pull is strong enough to tilt the whole market into a seller's market."

"AI memory is not optional once you are building modern training and inference boxes. HBM exists because GPUs are compute-rich and memory-starved, so when AI deployments accelerate, HBM demand can lurch upward faster than the rest of the memory complex."

Micron Technology was historically viewed as a volatile commodity chip maker facing cyclical demand and intense foreign competition from Samsung and SK Hynix. The AI boom and resulting memory shortage dramatically changed this narrative. Micron produces DRAM for system memory, NAND flash for storage, and premium HBM for AI applications. Strong demand from AI and data center sectors has shifted the memory market from a buyer's to a seller's market. HBM3E, Micron's high-bandwidth memory product, delivers over 1.2 TB per second of bandwidth specifically for AI accelerators. This demand appears stickier than typical memory cycles because HBM is essential for modern AI training and inference systems, as GPUs require high-bandwidth memory to overcome compute-memory imbalances.

Read at 24/7 Wall St.