Forget the Hype: This Stock Could Offer Better Long-Term Returns

The artificial quality (AI) hype is warranted, but betwixt giants similar Nvidia and rising stars similar Iren, galore promising stocks tin gaffe nether investors' radars.

Micron Technology (NASDAQ: MU) is 1 of those companies. It's acold from small, with a $437 billion market cap, but its caller quarterly results, beardown outlook, and bargain-basement valuation marque it compelling. It's silently crushed the banal marketplace implicit the past year, and is already starting 2026 beardown with a 36% year-to-date gain. Even with those successes, Micron is an underrated AI banal that hasn't received arsenic overmuch hype arsenic companies with akin banal gains.

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AI chips and vigor person received plentifulness of attraction arsenic 2 components of the AI bottleneck. However, representation retention is conscionable arsenic important, since it enables chips to execute astatine their best. Micron provides representation solutions for Nvidia, Advanced Micro Devices, and different AI chipmakers.

Each clip a tech elephantine buys a chip, Micron makes a small other revenue. For Micron, it doesn't substance if Nvidia, Advanced Micro Devices, Broadcom, oregon different chipmaker comes retired connected top. Micron benefits each clip immoderate of these chips is sold. Even for different AI chipmakers that Micron doesn't service directly, higher AI spot income volition boost request for representation retention solutions.

Micron's fiscal results overgarment the afloat picture. Revenue accrued by 57% twelvemonth implicit twelvemonth successful first-quarter fiscal twelvemonth 2026, with nett income astir tripling.

Micron's precocious gross maturation and rising nett margins are a bully operation that tin enactment semipermanent gains. The institution has besides established itself arsenic a person successful the representation retention industry. However, its valuation makes the banal look similar 1 of the champion successful the full market.

Micron trades astatine an 11.5 guardant price-to-earnings (P/E) ratio. Meanwhile, Nvidia, Advanced Micro Devices, and Broadcom person guardant P/E ratios of 23, 37, and 33, respectively. If Micron had a valuation that much intimately resembled these 3 AI chipmakers', it would already beryllium worthy much than $1 trillion.

This gross surge isn't a one-time thing. Micron accrued gross by 49% twelvemonth implicit twelvemonth successful fiscal 2025, and the institution provided exceptional guidance for the 2nd 4th of 2026. Micron is an AI enabler that is simply a captious portion of the bottleneck. Despite posting beardown gains, it hasn't received arsenic overmuch spotlight arsenic the trillion-dollar AI stocks and the rising stars. Micron's valuation offers an charismatic borderline of information portion giving investors vulnerability to the hottest industry.