Could This AI Chip Stock Be the Next Micron?
Marvell is evolving from a legacy chipmaker into a high-growth AI play.
Overview
Micron's (NASDAQ: MU) stock surged more than 730% over the past 12 months. That rally was driven by its soaring DRAM and NAND memory chip sales for AI-oriented data centers. Micron was once considered a cyclical company that went through "boom and bust" cycles. That perception changed as the AI market expanded and it recently secured over $22 billion in uncancellable, multi-year, fixed-price contracts through 16 Strategic Customer Agreements (SCAs) with data center giants.
From fiscal 2025 (which ended last August) to fiscal 2028, analysts expect Micron's revenue to surge nearly sevenfold as its EPS increases more than 22 times. Those are incredible growth rates for a stock that trades at less than nine times this year's sales and 13 times this year's earnings, so it could still have plenty of upside potential.
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Originally published at www.fool.com.