<p>Which companies immediately come to mind when the topic of artificial intelligence (AI) infrastructure is mentioned? I suspect many would answer <strong>Nvidia</strong> <span class="ticker-mention inline-flex items-center font-bold">(NVDA <span class="ml-1 text-red-900">0.61%</span>)</span>. Others might think of AI hyperscalers such as <strong>CoreWeave</strong> <span class="ticker-mention inline-flex items-center font-bold">(CRWV <span class="ml-1 text-red-900">2.82%</span>)</span>.</p>
<p>However, I doubt that <strong>Micron Technology</strong> <span class="ticker-mention inline-flex items-center font-bold">(MU <span class="ml-1 text-red-900">1.89%</span>)</span> would be among the top five responses. The memory and storage solutions company arguably deserves more attention than it typically gets. Could Micron even be the most underrated AI infrastructure play of the decade? Here are three reasons why the answer just might be a resounding &#34;yes.&#34;</p>
<div><img alt="Micron LPDDR5X memory chip." width="580" height="348" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/editorial/images/838199/micron-technology-ram-module-with-micron-logo_micron.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/editorial/images/838199/micron-technology-ram-module-with-micron-logo_micron.jpg"/>
<p>Image source: Micron Technology.</p>
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<h2>1. Memory is critical to AI</h2>
<p>Nvidia's GPUs remain the gold standard for powering AI models. However, these GPUs would be practically useless if they didn't have access to high-bandwidth, low-latency memory. Generative AI and large language models (LLMs) are especially memory-hungry.</p>
<p>But isn't memory essentially a commodity? In the past, it was. However, the picture has changed dramatically thanks to the surging adoption of AI models. Memory chips are now a critical and high-demand part of AI infrastructure. </p><div></div>
<p>Jensen Huang, Nvidia's founder and CEO, recently stated that &#34;Micron's leadership in high-performance memory is invaluable to enabling the next generation of AI breakthroughs&#34; that his company is driving. And the mission-critical nature of Micron's memory technology could increase as the focus shifts from training AI models to inference. </p><div><div id="in_line_article_pitch_container"></div></div>
<h2>2. Micron is a key member of the &#34;memory oligarchy&#34;</h2>
<p>It shouldn't be surprising that Huang praised Micron. Neither Nvidia nor AI hyperscalers have many sources to turn to for the memory chips needed to build and deploy AI models.</p>
<p>Micron is a key member of what can correctly be described as a &#34;memory oligarchy,&#34; at least when it comes to high-bandwidth memory (HBM). <strong>Samsung Electronics</strong> <span class="ticker">(OTC: SSNL.F)</span>, <strong>SK hynix</strong>, and Micron dominate the HBM market. While Samsung and SK hynix are based in South Korea, Micron is the only major U.S. supplier of HBM. </p>
<p>Importantly, Micron is on the ascent within this exclusive group. Over the last year, the company has vaulted past Samsung to become the second-largest HBM supplier after SK hynix. Micron now claims a market share of 21%. It has achieved this remarkable success in large part because of the impressive capabilities of its HBM3E HBM, which Micron bills as &#34;the fastest, highest-capacity high-bandwidth memory to advance AI innovation.&#34;</p><div></div>
<h2>3. Micron's valuation doesn't reflect its potential</h2>
<p>While I've hopefully built the case for Micron's significant role in AI, I haven't yet explained why the company is arguably the most underrated AI infrastructure play of the decade. This is where valuation takes center stage.</p>
<p>Nvidia's forward price-to-earnings (P/E) ratio is roughly 30. Fellow chipmaker <strong>Advanced Micro Devices'</strong> <span class="ticker-mention inline-flex items-center font-bold">(AMD <span class="ml-1 text-red-900">3.43%</span>)</span> forward earnings multiple isn't too far behind at 28.6. AI accelerator leader Broadcom's <span class="ticker-mention inline-flex items-center font-bold">(AVGO <span class="ml-1 text-red-900">0.70%</span>)</span> shares trade at a lofty 36.8 times forward earnings.</p>
<p>What about the AI hyperscalers? CoreWeave isn't profitable yet, so earnings-based metrics must be tossed out the window. However, its trailing 12-month price-to-sales ratio tops 19. <strong>Nebius Group</strong> <span class="ticker-mention inline-flex items-center font-bold">(NBIS <span class="ml-1 text-red-900">5.43%</span>)</span> stock trades at a nosebleed 114.5 times sales.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Micron Technology Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01VLnBuZyZ3PTEyOA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01VLnBuZyZ3PTEyOA"/></div><div><h2>NASDAQ: MU</h2><div>Micron Technology</div></div></div><div><div><div>Today's Change</div><div>(-1.89%) $-3.82</div><div>Current Price</div><div>$198.47</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$223B</div><div>Day's Range</div><div>$192.40 - $205.58</div><div>52wk Range</div><div>$61.54 - $214.75</div><div>Volume</div><div>296K</div><div>Avg Vol</div><div>23M</div><div>Gross Margin</div><div>40.06%</div><div>Dividend Yield</div><div>0.00%</div></div></div></div></section>
<p>We've seen how critical memory is for AI models. We've established that Micron is one of only three major sources for HBM. So how does its valuation stack up against these other AI infrastructure players? Micron's forward P/E ratio is... 12.3. And that low multiple comes after the company's share price has skyrocketed 140% this year. Notably, Micron is cheaper than Samsung Electronics -- the company it has eclipsed in the HBM market.</p><div></div>
<p>I think that Micron is valued based on the historical background of the memory industry rather than its future prospects with the AI boom. Does this make the stock the most underrated AI infrastructure play of the decade? Micron definitely ranks as one of the top contenders, in my opinion.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

<p>Micron Technology (MU) is being highlighted as a potentially underrated player in AI infrastructure, despite not being a top-of-mind company like Nvidia or CoreWeave. Key reasons include the critical role of memory in AI, Micron's position in the memory oligarchy alongside Samsung and SK hynix, and its low valuation compared to other AI infrastructure companies. Micron's forward P/E ratio stands at 12.3, significantly lower than Nvidia's 30 and AMD's 28.6, suggesting it may be undervalued in light of its importance in the AI sector.</p>

- Micron Technology is highlighted as a potentially underrated player in AI infrastructure, despite not being a top-of-mind company like Nvidia or CoreWeave.  
- The article emphasizes the critical role of memory in AI, noting Micron's position as a key supplier in the high-bandwidth memory market, where it has gained significant market share.  
- Additionally, Micron's low forward price-to-earnings ratio compared to other AI infrastructure companies suggests that its valuation does not reflect its potential in the growing AI sector.

Could This Be the Most Underrated AI Infrastructure Play of the Decade?