Parkev Tatevosian, CFA on $MU (Nov 1, 2026)
Micron is an undervalued AI stock to buy: free cash flow is estimated to reach $50 billion in fiscal 2026 from $2.61 billion in fiscal 2025 and to keep growing, all 2027 output and most of 2028 are sold out amid product shortages, and a strong replacement cycle is expected to sustain profitability and cash flow for years despite investor worry about what comes next. Fair value of $1,436 versus $929 implies roughly 55% upside over 12 to 18 months.
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The second stock I would highlight as an undervalued AI stock to buy is Micron, which has seen similar results to Nvidia in terms of rising share price, but also increased earnings and cash flow.
In fact, I estimate that its free cash flow will end fiscal year 2026 at $50 billion, up from $2.61 billion in fiscal year 2025. And this growth will continue.
There is a shortage of the company's products. Its entire production for 2027 and most of 2028 is sold out. But investors are worried about what will happen next. I believe the replacement cycle will be strong enough to maintain Micron's level of profitability and cash flow for many years to come.
I calculated the fair value of the company at $1436 , while the current market price is $929, leaving room for growth of approximately 55% over the next 12 to 18 months .
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