The company has built a solid customer base that includes the likes of OpenAI<\/a>, Meta Platforms, and Alphabet. Broadcom has seen healthy growth in its AI revenue<\/a> in recent quarters, a trend that’s likely to continue in the future given its sizable addressable market.<\/p>\n There’s another important AI chipmaker — Micron Technology (MU<\/a> +2.70%) — that’s set to release its results in December as well. The share price of this company is up 166% so far in 2025, handily beating Broadcom’s returns. Despite this performance, it’s trading at a cheaper valuation than Broadcom.<\/p>\n Let’s look at the reasons why Micron is my top AI stock<\/a> to buy in December.<\/p>\n Image source: Micron Technology.<\/p>\n Micron Technology is on track to deliver phenomenal growth<\/p>\n Micron is set to release its fiscal 2026 first-quarter results (for the quarter that ends in November) on Dec. 17. The memory specialist’s management guided for $12.5 billion in revenue for fiscal Q1, which would be a 45% increase from the year-ago period. The non-GAAP<\/a> earnings guidance of $3.75 per share would be more than double the year-ago period’s reading of $1.79 per share.<\/p>\n Today’s Change<\/p>\n (2.70%) $6.22<\/p>\n Current Price<\/p>\n $236.48<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $265B<\/p>\n Day’s Range<\/p>\n $233.47 – $238.10<\/p>\n 52wk Range<\/p>\n $61.54 – $260.58<\/p>\n Volume<\/p>\n 13M<\/p>\n Avg Vol<\/p>\n 26M<\/p>\n Gross Margin<\/p>\n 40.06%<\/p>\n Dividend Yield<\/p>\n 0.19%<\/p>\n This impressive growth will be driven by the favorable demand-supply environment in the memory market, which is booming right now thanks to AI. Chip designers such as Broadcom, Nvidia, AMD, and Marvell Technology have been integrating bigger and faster memory, known as high-bandwidth memory (HBM), into their AI chips to enhance computing power and reduce latency.<\/p>\n As a result, the demand for server memory chips is outpacing supply, leading to a spike in prices. Market research firm Counterpoint Research estimates that the price of dynamic random access memory (DRAM) has shot up by 50% in 2025 so far. This trend is expected to continue in 2026, with server DRAM prices expected to double by the end of 2026.<\/p>\n Meanwhile, Counterpoint expects a 50% increase in overall memory prices by the second quarter of 2026. As a result, there is a high possibility of Micron reporting stronger growth in its revenue and earnings next year. This explains why analysts increased their revenue and earnings expectations for both the current and the next fiscal years.<\/p>\n Data by YCharts.<\/a><\/p>\n Even better, Micron seems capable of maintaining its outstanding growth rates beyond the next couple of years. That’s because the market for AI-specific memory chips is expected to clock an annual growth rate of 30% through 2030, according to Micron’s peer SK Hynix. So it won’t be surprising to see Micron stock turning out to be a solid long-term investment, especially considering its attractive valuation.<\/p>\n The stock’s valuation is too attractive to ignore right now<\/p>\n Though Micron stock has shot up substantially this year, it can still be bought at 27 times trailing earnings. That’s a discount to the tech-laden Nasdaq-100 index’s average earnings multiple of 32. The company’s forward earnings multiple<\/a> of 13 is even more attractive, thanks to the big bottom-line increase it’s expected to deliver.<\/p>\n<\/p>\n
<\/p>\n
![\"MU](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/6f46dc1a9193c53a0dbd2d535d1652f3.png\"\/)
<\/a><\/p>\n