Invest in Micron, Nvidia, Microsoft at Deep Discounts
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Micron trades at 6.8× forward earnings while its stock has risen roughly 300% over the past year, making it the cheapest and best‑performing stock on the list.
- Micron posted $23.9 billion revenue in its latest quarter, up from $13.6 billion the prior quarter and $8 billion a year earlier, and projected $33.5 billion for the next quarter.
- Nvidia reported 73% year‑over‑year revenue growth in Q4 and projects 77% growth in Q1, yet its forward‑earnings multiple is about 21.1×, only slightly above the S&P 500’s 20.6×.
- Microsoft saw revenue rise 17% YoY and earnings per share jump 60% in the latest quarter, and its operating P/E ratio indicates the stock is the cheapest since the start of the decade.
- The article recommends buying the three AI stocks—Micron, Nvidia, Microsoft—now, arguing they are trading at deep discounts relative to their growth prospects.
Why it matters: Investors benefit from buying at forward‑earnings multiples of 6.8× (Micron), 21.1× (Nvidia) and a historically low operating P/E (Microsoft), all under the S&P 500’s 20.6×, while each firm’s rapid revenue expansion suggests the stocks are undervalued; the discount reflects market skepticism about the durability of the current AI demand surge.
