Here’s why Micron is a great AI play

Micron Technology (Micron Technology Stock Quote, Chart, News, Analysts, Financials NASDAQ:MU) remains an underappreciated AI name, according to Forvest Global Wealth Management president Lyle Stein, who said the chipmaker gives investors exposure to memory demand at a far lower valuation than many of the market’s better-known AI winners..

Speaking on BNN Bloomberg Market Call on April 9, Stein said Micron is not a direct substitute for Nvidia but instead benefits from a different part of the AI stack. He said compute chips may get most of the attention, but memory is still essential to support both compute and inference workloads.

“It’s a complementary play to Nvidias of the world,” he said.

He added that Micron looks controversial mainly because of valuation, with the stock trading at about five times earnings while many AI-related names trade closer to 20 times. In his view, that discount reflects the cyclical nature of the memory business and investor concern about where DRAM pricing settles over time.

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Still, Stein said he does not expect a full collapse in memory pricing, arguing demand remains strong and producers appear less likely than in past cycles to overspend on capacity. He said that if Micron can sustain this earnings level, the company should be in a position to buy back significant amounts of stock.

Micron shares have gained 521.7% over the past 12 months. Among analysts covering the stock, 47 rate it “Buy,” five rate it “Hold” and none rate it “Sell,” with a consensus price target of US$543.07.

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