Micron Technology is a significant player in the AI industry, known for its memory chips used in various devices, including phones and computers. Currently, it’s perceived as one of the most affordable AI stocks, presenting a potential triple-digit upside. Approximately 50% of its revenue stems from data centers, which have shown remarkable growth—40% sequentially and over 400% year-over-year. However, challenges remain as Micron's offerings are commoditized, making it susceptible to competition and affecting its stability and profitability in the long term.
Micron's revenue is highly tied to the data center market, with 50% of its income derived from this sector, highlighting its growing significance in AI.
The commoditization of DRAM and NAND memory chips makes Micron vulnerable, as customers can easily switch to competitors, which affects long-term profitability.
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