Micron’s stock has had a banner year, and the company has also done incredibly well. Thanks to a shortage of supply in the memory chip market, prices are soaring, which boosts Micron’s earnings and profits. This tailwind is far from slackening: Wall Street expects the memory company to deliver 80% growth in its fiscal 2027 (which begins in September). <\/p>\n However, that outlook did not prevent the stock from selling off over the past few weeks as investors grew more worried that the AI demand curve may not last as long as predicted. But to think that requires one to ignore the messaging that these companies have provided lately. Micron has informed investors that it expects the undersupply in the memory chip market to persist beyond 2027. That’s after it expects to bring some of its new production capacity online, but it still could be a while before Micron and its peers can catch up with the incredibly high demand for their wares. Furthermore, with the AI infrastructure build-out expected to keep accelerating through 2030, there’s plenty of growth ahead for this investment trend. <\/p>\n As a result, I think Micron is a solid stock to buy on the dip<\/a>, as the medium-term tailwinds are blowing heavily in its favor. <\/p>\n Nvidia <\/p>\n Nvidia makes the GPUs that provide the bulk of AI computing power, and it uses Micron’s memory chips in its products. So, as demand for Nvidia’s processors rises, so will demand for Micron’s chips. All indications point to that demand rising, as Nvidia informed investors it expects that hyperscalers’ data center capital expenditures will rise to $1 trillion in 2027, up from $650 billion in 2026<\/a>. The reality is that Nvidia likely has most of its product orders for 2027 already booked in its system, as the AI hyperscalers want to ensure the computing chips they need will be available once the rest of their data center infrastructure is complete. That gives Nvidia inside information about the future of the tech sector that it’s freely relaying to the public. Yet the market hasn’t really acted on it. <\/p>\n Story Continues <\/p>\n Nvidia trades at about 23.1 times forward earnings. If the company exactly hits Wall Street’s full-year estimates, it will trade at 23.1 times trailing earnings. For reference, the S&P 500 (SNPINDEX: ^GSPC) trades for 25.6 times trailing earnings right now. <\/p>\n Based on the current share price, the market is basically saying that after 2026’s growth is complete, Nvidia should be priced as a below-average company, which is silly. Analysts are estimating strong 42% growth for it in 2027. Wall Street has historically underestimated how fast Nvidia would grow. If that’s the case now, the stock could be an even deeper value. <\/p>\n In the chart above, I’ve also included the forward one-year price-earnings ratio, which uses next fiscal year’s earnings estimate. From that standpoint, Nvidia trades at 16 times forward earnings, which will be a very low price to pay for the stock. I’d expect both of those numbers to increase the closer we get to 2027, making right now an excellent time to buy the stock, as the market hasn’t factored next year’s growth into its price. <\/p>\n Should you buy stock in Micron Technology right now? <\/p>\n Before you buy stock in Micron Technology, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $371,842!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 900% \u2014 a market-crushing outperformance compared to 207% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of July 20, 2026. <\/p>\n Keithen Drury<\/a> has positions in Nvidia. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Micron <\/p>\n
<\/a> MU Revenue (Quarterly YoY Growth)<\/a> data by YCharts.<\/a> <\/p>\n
<\/a> NVDA PE Ratio (Forward)<\/a> data by YCharts.<\/a> <\/p>\n