Analyst Flags Micron as a Cheap AI Hardware Play on HBM Momentum
The case centers on a roughly 11x forward P/E alongside rapid high‑bandwidth memory growth tied to AI.
Overview
- OptionsPlay’s Tony Zhang told Schwab Network that Micron trades near 11 times forward earnings and still has substantial upside.
- He cited roughly 50% quarter‑over‑quarter growth in Micron’s HBM supplied for Nvidia’s AI chips and noted recent net margin expansion to about 22%.
- Zhang said Micron is taking meaningful high‑bandwidth memory market share from Samsung.
- Jim Cramer said Micron’s products are in short supply but warned the stock’s parabolic move argues for waiting for a pullback.
- Baird Chautauqua’s Q2 2025 letter reported Micron gained 42% in the quarter on strong HBM DRAM demand that it calls essential for AI computing.