This Artificial Intelligence Stock Is a Terrific Bargain Buy in 2026 (Hint: It’s Not Micron)
This Artificial Intelligence Stock Is a Terrific Bargain Buy in 2026 (Hint: It’s Not Micron)
Publish Date: 2026-01-15 21:50:00
Source Domain: www.nasdaq.com
Here are five key points summarized from the article:
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Micron Technology’s Value and Growth: Micron Technology, a memory specialist, is trading at a significantly lower valuation—11 times forward earnings and 9 times sales—compared to its top-AI competitors. Despite its cheap valuation, Micron is expected to experience substantial revenue and earnings growth, driven by a surge in demand for memory chips used in AI technologies.
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DRAM Price Projections: Counterpoint Research forecasts a significant increase in the price of dynamic random access memory (DRAM) in the near future, with a potential 40%-50% rise in the current quarter, followed by a 20% jump in the next quarter. This is due to supply constraints driven by the heightened demand for memory chips in AI accelerators.
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Growth of Marvell Technology: Marvell Technology, which designs custom AI processors and networking chips, has seen a healthy increase in its revenue and non-GAAP net income. Its forward earnings multiple of 23 is attractive compared to the Nasdaq-100 index’s forward earnings multiple of 26, and its earnings multiple of 9.2 reflects its substantial growth.
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Prospects for AI Processor Market: Marvell Technology is expected to sustain its growth through securing new design wins, with more than 10 customers and the potential for over 50 chip designs, fueled by strong demand from hyperscalers and AI companies.
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Comparative Analysis by Stock Advisor: While Marvell Technology is mentioned as potentially valuable, it was not included in the “10 best stocks to buy right now” list by The Motley Fool Stock Advisor. Instead, other stocks have shown historically impressive returns following their inclusion in this list.
