People become rich by strategically building positions during market downturns. The Strait of Hormuz blockade has caused crude oil futures to surge by almost 50% over the past month. Futures haven't been this expensive since 2022, and if the blockade continues, oil prices can go a lot higher.
It's these types of events that cause people to worry about a potential stock market crash. Some investors also think about the worst-case scenarios, such as hyperinflation and reduced access to basic necessities.
While investors should closely monitor the situation, that doesn't mean they should panic and sell assets that have reliable fundamentals. One of these stocks seems to be undervalued in light of structural demand driven by AI adoption , while the other has been caught in the crossfire of market panic while delivering revenue and net income growth.
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Micron's blowout earnings show the AI build-out is still strong
Micron Technology (MU +0.90%) has a market cap above $400 billion, but its recent earnings results suggest that it can continue to outperform the S&P 500.
Investors were already upbeat after Micron grew its revenue by 57% year over year in the first quarter of fiscal year 2026 (which ended Nov. 27, 2025) and projected it would earn $18.7 billion in Q2. While shareholders were happy with that guidance, few could have expected Micron to deliver $23.9 billion in that quarter.
NASDAQ: MU
Key Data Points
Revenue almost tripled year over year, and net income surged by 771% in Q2. However, Micron still wasn't done. Guidance for Q3 implies 40% sequential growth at the midpoint. Micron's ability to gain market share for its memory storage solutions -- which are critical for the AI build-out -- is still in its early innings.
To top it all off, Micron has a P/E ratio below 20, which is an absolute steal for this industry. Fellow AI giants Nvidia and Broadcom have P/E ratios of 34 and 58.5, respectively. That valuation suggests Micron is undervalued, especially considering its recent growth and guidance.
Institutional investors have noticed the opportunity. Micron was one of BlackRock's top buys in Q4 2025. Barclays also added 2.85 million Micron shares to its portfolio in the fourth quarter.
Robinhood's 50% drop is overdone
It's no surprise that Robinhood Markets (HOOD +3.18%) lost some of the wind from its sails after Bitcoin crashed by more than 40% from its all-time highs. Crypto trading activity was a key driver for Robinhood in the first half of 2025, but that segment was down year over year in Q4 2025.
Although the crypto segment didn't do Robinhood any favors in Q4, companywide revenue rose 27% year over year. Robinhood has multiple growing segments within its fintech enterprise. Options and equities revenue were up by 41% and 54% year over year, respectively. Net interest revenue was another standout, up by 39% year over year.
While Robinhood continued to gain market share in key categories, its prediction market business offers the most exciting upside. It's a relatively new part of Robinhood's business that has seen strong growth in recent quarters. Robinhood has also seen a rise in its annual revenue per user, showing that it can monetize existing users while attracting new customers.
The 50% drop feels a bit exaggerated at this point. Robinhood has done a great job of winning over young investors, and that should set the stock up for long-term gains.
BlackRock and Barclays both bought the dip in Q4. Morgan Stanley joined them by investing in more than two million Robinhood shares in Q4.
