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Micron Technology (MU) presents a compelling investment opportunity as a critical infrastructure play in the AI revolution. The company has established itself as the dominant supplier of high-bandwidth memory (HBM), with its HBM3E chips delivering 1.2TB/s bandwidth and powering next-generation AI applications from data centers to edge computing. HBM revenue has grown over 50% quarter-over-quarter for two consecutive quarters, reaching a $6+ billion run rate with expectations to approach $8 billion, representing 20% of total revenue. The company’s technological leadership is evident in its sole-supplier status for LPDRAM in data centers. With AI models becoming increasingly memory-intensive and the total addressable market for HBM projected to reach $100 billion by 2030, Micron is uniquely positioned to capture significant market share in this sixfold expansion.

The financial transformation supports a strong investment case despite near-term volatility. Micron’s Q3 2025 results demonstrated record DRAM revenue of $7.1 billion (up 51% year-over-year) and robust gross margins of 39%, while management raised Q4 guidance to $11.2 billion revenue with 44.5% gross margins. The stock trades at a multiple of just 9.0x forward earnings, which is in-line with its long-run average, but at a PEG ratio of just 0.16, which is well below its long-run average. This suggests valuation is very attractive at today’s levels, especially if earnings are on a significantly upward trajectory over the next five years as the HBM market expands rapidly. Data center revenue has grown 400% year-over-year and now represents over half of total revenue, providing stability and premium pricing power. While geopolitical tensions and memory cycle concerns present risks, Micron’s $200 billion domestic investment commitment, federal funding support, and partnerships with industry leaders like Nvidia for H200 and GH200 accelerators solidify its strategic position. The company’s ability to maintain pricing discipline in a historically cyclical market, combined with its technological moat and exposure to structural AI growth trends, creates a compelling risk-adjusted return opportunity for long-term investors.