Micron (NASDAQ:MU) seems to have developed a habit of giving investors an earnings hangover. Following its blockbuster fiscal fourth-quarter results in late September, shares have been bouncing up and down, leaving the stock 3% below its pre-earnings level. And this isn't the first time Micron has struggled following an otherwise stellar report. After June's earnings release, the stock suffered a painful reversal, losing nearly 30% over the following month.

Still, with Micron shares already up 273% for the year heading into September's earnings release, some profit-taking was hardly unexpected. After such a massive rally, investors had high expectations, leaving little room for anything short of stellar results. And stellar they were, with fiscal Q4 revenue surging 379% year-over-year to $54.23 billion, while adjusted earnings reached $33.42 per share. The chipmaker also projected $61.5 billion in sales for the current quarter, pointing to continued strength in AI-driven memory demand.

Yet, one top investor, known by the pseudonym Juxtaposed Ideas, believes the recent stock performance presents an opportunity worth considering. Ranked among the top 2% of stock experts on TipRanks, he argues that short-term price movements shouldn't overshadow Micron's longer-term prospects.

"I believe that the best time to buy is at the time of maximum pessimism (as quoted from Sir John Templeton), with the ongoing momentum weakness triggering my upgraded Buy rating," Juxtaposed Ideas explains.

His optimism rests partly on the changing nature of the memory chip industry, which has historically experienced painful cycles of oversupply and falling prices. However, AI could provide greater stability than previous technological growth periods, particularly as cloud providers continue investing heavily in computing infrastructure.

Micron's 26 strategic customer agreements are particularly important to this argument, representing $150 billion in remaining performance obligations through 2031. These contracts include financial commitments and pricing arrangements that could make future revenue more predictable while reducing exposure to traditional industry downturns.

Meanwhile, cloud computing giants continue spending heavily on AI infrastructure, supporting demand for advanced memory products. Micron expects supply conditions to remain tight through 2027 and 2028, potentially sustaining favorable pricing and profitability.

Juxtaposed Ideas also sees opportunities beyond data centers, particularly in robotics and autonomous vehicles. As AI becomes more deeply integrated into physical machines, these applications could create additional sources of chip consumption.

Valuation provides another reason for his bullish outlook, with Micron trading at a forward enterprise-value-to-sales multiple of 4.05. That compares favorably with several memory and storage competitors, particularly considering the chipmaker's expanding cash generation and healthier balance sheet.

Still, Juxtaposed Ideas recognizes that investor sentiment may remain weak for some time. He estimates Micron's fair value at $1,500 per share, while his longer-term target reaches $2,000, suggesting about 93% potential gains from current levels.

"As a result, while MU may suffer intermediate-term stock price underperformance, I believe that it presents a great buying opportunity for those who are patient," the investor summed up. (To watch Juxtaposed Ideas' track record, click here)

Wall Street shares that optimism, with Micron earning a Strong Buy consensus rating based on 27 Buys and just one Hold issued over the past three months. The average 12-month price target of $1,621.67 suggests a potential upside of ~58% from current levels. (See MU stock forecast)