Artificial intelligence (AI) stocks have continued to impress investors in 2025, with the Global X Artificial Intelligence & Technology ETF seeing a 30% jump. Despite a rocky start to the year due to factors like trade wars and concerns about AI infrastructure spending, the sector has performed well. This was further highlighted when DeepSeek, a Chinese tech startup, claimed to have trained its language model at a fraction of the cost compared to industry giants like OpenAI.
Among the top AI stocks, names like Nvidia, Palantir, Broadcom, and Snowflake have seen significant surges in their stock prices. However, one standout is Micron Technology (NASDAQ: MU), which despite a 250% increase in the past year, is trading at a cheap valuation. With a 57% increase in revenue and a 167% increase in earnings in its latest quarter, Micron’s trailing earnings multiple of 27 presents a compelling opportunity.
Looking ahead, Micron anticipates further growth in the current quarter, with estimates projecting a significant increase in earnings for the next fiscal year. The company’s forward earnings multiple of just 9 is well below the industry average, indicating potential for further upside.
One key factor driving Micron’s growth is the increasing demand for memory chips, particularly in AI accelerator chips and data center applications. This has led to a shortage of memory chips used in consumer electronics, resulting in higher prices. Market research firm IDC predicts a lower supply growth rate in 2026, with the HBM market expected to grow significantly in the coming years.
Given the projected growth in AI data centers and the overall demand for memory chips, Micron’s stock price could continue to rise beyond 2026. With spending on AI data centers expected to reach $1.2 trillion by 2030, Micron stands to benefit from this trend.
Before investing in Micron Technology, it’s important to consider all factors. While the stock presents a compelling opportunity, it’s essential to conduct thorough research and consult with financial advisors.
In conclusion, Micron Technology could be a standout AI stock in 2026, offering investors a potential bargain buy with significant growth prospects. As the AI industry continues to evolve, companies like Micron are well-positioned to capitalize on the growing demand for memory chips in various applications.
