Micron’s AI‑chip boom: Why investors still miss the mark

Micron Technology is shifting from old‑school memory chips to high‑bandwidth AI parts, a move that could change its future earnings. The company has already sold all of its 2026 high‑bandwidth memory (HBM) output under long‑term contracts, giving it a clear view of revenue and profit for the next few years. Guidance shows a 68 % gross margin in FY2026’s second quarter and earnings of about $8. 42 per share, a strong jump from its past performance.Even so, stock analysts are valuing Micron at only 10‑12 times next year’s earnings, a level that feels low compared to tech companies that build platforms rather than sell chips. The main risks are technical: the next HBM generation needs to pass tests with Nvidia, and global politics could affect supply chains. However, the binding contracts lock in prices and reduce the usual boom‑and‑bust cycle of memory sales, giving Micron a steadier cash flow. Overall, the company looks like an undervalued platform player that could deliver better returns than typical memory makers.