Meet the Monster Stock That Continues to Crush the Market

<p>Over the last three years, the stock market has entered a rewarding bull run thanks in large part to the boom in artificial intelligence (AI). For most of the AI revolution, megacap technology stocks have been the primary beneficiaries.</p>
<p>In particular, <a href="https://www.fool.com/investing/stock-market/market-sectors/information-technology/semiconductor-stocks/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=0d8d15e9-270d-412d-8f0a-3a7f3e3fbf9d">semiconductor stocks</a> such as Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Taiwan Semiconductor Manufacturing (NYSE: TSM) have joined the exclusive trillion-dollar club due to their respective roles in fueling demand for generative AI.</p>
<p>Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. <a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=737e4077-8f14-4e0b-8df0-829be415a8fa&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-ai-boom-nvidias%3Faid%3D10891%26source%3Disaediica0000069%26ftm_cam%3Dsa-ai-boom%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D18914&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=0d8d15e9-270d-412d-8f0a-3a7f3e3fbf9d">Continue »</a></p>
<p>Over the last year, however, a new AI chip stock has entered the spotlight: Micron Technology (NASDAQ: MU), whose 304% return over the last 12 months absolutely trounces the returns of its peers as well as that of the broader S&amp;P 500 and Nasdaq-100 indexes.</p>
<p>Let's break down what is fueling the Micron stock rally and assess if now is a good time for investors to get in on the action.</p>
<h2>What does Micron do?</h2>
<p>Micron is a leader in specialized semiconductors, designing advanced memory and storage solutions.</p>
<p>The company produces dynamic random access memory (DRAM) for high-speed data processing in consumer electronic devices such as smartphones and laptops, as well as business solutions like AI servers.</p>
<p>In addition, Micron develops NAND flash memory, which complements the DRAM business, as durable, power-efficient memory is critical for AI data centers and emerging Internet of Things (IoT) applications.</p>
<h2>The AI memory chip market is going parabolic</h2>
<p>Micron's high-bandwidth memory (HBM) solutions are a critical enabler of graphics processing units and AI accelerators made by Nvidia and Advanced Micro Devices. The company's business trajectory is currently fueled by AI-driven demand from the hyperscalers.</p>
<p>In 2026, Amazon, Alphabet, Microsoft, and Meta Platforms are forecasting they will spend upward of $600 billion on capital expenditures -- the majority of which will be allocated toward further data center build-outs and chip procurement.</p>
<p>Considering Micron has already <a href="https://www.fool.com/investing/2026/02/16/predict-micron-stock-price-worth-2026/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=0d8d15e9-270d-412d-8f0a-3a7f3e3fbf9d">sold out of its HBM solutions</a> for the year, it's safe to say the company is emerging as a central figure in the AI infrastructure era as big tech doubles down on enhanced training and inferencing needs for its next-generation models.</p>
<h2>Is Micron stock still a buy?</h2>
<p>While shares of Micron have gone parabolic, percentage gains in stock price don't reveal much about a company's true valuation profile.</p>