Good morning, investors. An old rule of thumb on Wall Street is that once a stock starts dominating headlines, the trade has usually run its course.
As time-tested as that axiom is, we are living through an unprecedented moment in markets.
Micron is one company that captures the absurdity.
Micron’s dominance in charts
Micron has gone from $370 to $747 in 4 weeks and the data still says it's underpriced.
The stock trades at roughly 13 times consensus full-year 2026 earnings and less than 8 times for 2027.
That’s cheap for a regional bank, let alone a chip-maker that just posted 74% gross margins.
That also makes it the cheapest large-cap AI play in the industry right now.
Micron is up 162% in 2026 so far and over 700% since this time last year.
Those numbers put it in the same parabolic trajectory as Nvidia’s run from 2023.
AI memory sells for far more than the regular memory, and according to Micron’s latest earnings:
High-bandwidth memory is sold out through the end of 2026
Customers are only getting about half of what they ordered
No new capacity arrives until late 2027
It’s true that SK Hynix has more than twice the market share and works as Nvidia’s main supplier, but Micron remains a key runner-up for memory sourcing.
Hyperscalers, after all, need all the AI memory they can get and the existing suppliers haven’t been able to meet the rising demand.
To be sure, usually any company with a chart like Micron’s looks poised for a pullback.
It’s also notable that the stock has shot far above Wall Street’s consensus price target of $279 a share. A 10-20% drop from here would make sense.
But even without a sizable drawdown, Micron still trades as the cheapest mega-cap in the AI buildout.
Now, as Best Ideas Club members know, our team has been bullish on Micron well before its meteoric rise.
We published this stock in February 2025 when it traded at $89 a share, which is good for a 738% return inside our members portfolio.
Market snapshot
Elsewhere
🇨🇳 President Trump will visit China this week. He’s set to visit with dozens of US business leaders including Nvidia’s Jensen Huang and Apple’s Tim Cook, as well as the CEOs from Boeing and Citi. (Yahoo Finance)
💥 A drone strike hit a cargo ship in the Persian Gulf. The latest shipping attack provided another test to the fragile ceasefire between the US and Iran. Qatar’s defense ministry said the attack caused a “limited fire on board.” (Bloomberg)
🛢️ Saudi Aramco’s profits jumped 26% in the first quarter. One of its key pipelines reached capacity with the Iran conflict unfolding, and its profits beat analyst expectations. (CNBC)
Rapid-fire
Samsung is the latest company to join the $1 trillion club (Yahoo Finance)
Kevin Warsh’s game plan for trimming the Fed’s $6.7 trillion balance sheet could prove his critics wrong (Barron’s)
Iran and the US continue to go back and forth on peace talks (WSJ)
This classic retailer has compounding upside ahead as it pivots hard into automation (Best Ideas Club)
McDonald’s and Whirlpool just flashed the same consumer warning (Opening Bell Daily)
Bitcoin is booming out of its bear market right now (Full Signal)
Alphabet’s 160% rally over 12 months reflects the value in owning the “full AI stack” (CNBC)
On this day
🗓 May 11, 2017: Snap Inc. shares fell more than 20% after the company's first earnings report as a public company revealed a $2.2 billion loss inflated by IPO-related stock compensation, wiping out almost all gains from its IPO.
Last thing
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