#micron-technology

#micron-technology

The enthusiasm comes as Micron delivered remarkable Q1 FY2026 results, with revenue climbing 56.7% year-over-year to $13.64 billion and net income soaring 175.4% to $5.24 billion. The company's 38.4% net profit margin is stunning. Operating cashflow reached $8.41 billion in the quarter. Attention intensified following comments from Nvidia's CEO about AI storage demand, which sent memory chip stocks surging across the board.

All three are riding the AI megatrend and have strong revenue visibility beyond 2026. These companies are on the "frontline" when it comes to AI hardware. Data centers are being built out at a record pace, and is not the only company that is benefiting from it. The market is starting to move past NVDA stock and is pouring into other satellite AI beneficiaries who are seeing explosive upward momentum one after the other.

When it comes to artificial intelligence, a few names dominate the conversation like Nvidia ( NASDAQ:NVDA ), Taiwan Semiconductor Manufacturing ( ), or even Intel ( NASDAQ:INTC ) in recent months. These companies rightfully claim the spotlight. These players drive the AI narrative because they deliver tangible results - record revenues, market share gains, and innovations that fuel everything from chatbots to autonomous systems. Investors flock to them, bidding up shares on every earnings beat or product launch. Yet beneath the hype, AI's foundation relies on more than just processing power and fabrication prowess. Data storage and high-speed memory are the unsung necessities that enable seamless data flow , preventing bottlenecks in the AI pipeline.

Micron Technology ( ) has emerged as a key player in the artificial intelligence (AI) ecosystem through its high-bandwidth memory (HBM) chips, which provide the high-speed data processing essential for training large language models and running inference tasks. These chips enable AI accelerators from companies like Nvidia ( NASDAQ:NVDA ) to handle massive datasets efficiently, positioning MU as a vital supplier amid surging demand from data centers.

The chipmaker's pivotal role in supplying high-bandwidth memory (HBM) and storage solutions for AI data centers positions it for explosive growth without the hype. While Nvidia dominates GPUs, Micron fuels the backbone DRAM and NAND chips essential for AI training and inference, where data volume is exploding. This under-the-radar status has kept its valuation attractive, with a forward P/E of just 12 and a price-to-earnings-to-growth (PEG) ratio of a minuscule 0.22, signaling significant undervaluation amid AI's boom.