The artificial intelligence (AI) hype is warranted, but between giants like Nvidia and rising stars like Iren, many promising stocks can slip under investors' radars.
Micron Technology (MU +5.41%) is one of those companies. It's far from small, with a $437 billion market cap, but its recent quarterly results, strong outlook, and bargain-basement valuation make it compelling. It's silently crushed the stock market over the past year, and is already starting 2026 strong with a 36% year-to-date gain. Even with those successes, Micron is an underrated AI stock that hasn't received as much hype as companies with similar stock gains.
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More people are paying attention to energy storage
AI chips and energy have received plenty of attention as two components of the AI bottleneck. However, memory storage is just as important, since it enables chips to perform at their best. Micron provides memory solutions for Nvidia, Advanced Micro Devices, and other AI chipmakers.
NASDAQ: MU
Key Data Points
Each time a tech giant buys a chip, Micron makes a little extra revenue. For Micron, it doesn't matter if Nvidia, Advanced Micro Devices, Broadcom, or another chipmaker comes out on top. Micron benefits each time any of these chips is sold. Even for other AI chipmakers that Micron doesn't serve directly, higher AI chip sales will boost demand for memory storage solutions.
Micron's financial results paint the full picture. Revenue increased by 57% year over year in first-quarter fiscal year 2026, with net income almost tripling.
It's hard to find an AI stock with Micron's valuation
Micron's high revenue growth and rising profit margins are a good combination that can support long-term gains. The company has also established itself as a leader in the memory storage industry. However, its valuation makes the stock look like one of the best in the entire market.
Micron trades at an 11.5 forward price-to-earnings (P/E) ratio. Meanwhile, Nvidia, Advanced Micro Devices, and Broadcom have forward P/E ratios of 23, 37, and 33, respectively. If Micron had a valuation that more closely resembled these three AI chipmakers', it would already be worth more than $1 trillion.
This revenue surge isn't a one-time thing. Micron increased revenue by 49% year over year in fiscal 2025, and the company provided exceptional guidance for the second quarter of 2026. Micron is an AI enabler that is a critical part of the bottleneck. Despite posting strong gains, it hasn't received as much spotlight as the trillion-dollar AI stocks and the rising stars. Micron's valuation offers an attractive margin of safety while giving investors exposure to the hottest industry.
