Prediction: This Artificial Intelligence (AI) Chip Stock Will Rebound in Spectacular Fashion in 2025

Core Viewpoint - Semiconductor stocks have generally performed well during the AI revolution, but Micron Technology has struggled, with only a 6% increase in 2024, leading to perceptions of it being a poor investment [1][2][3] Industry Performance - The VanEck Semiconductor ETF gained 39% in 2024, outperforming both the S&P 500 and Nasdaq Composite [5] - Major players like Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom have driven significant growth in the semiconductor sector, particularly in AI applications [2][9] Company-Specific Analysis - Micron's stock has been volatile, dropping approximately 38% since June 2024, indicating investor uncertainty [6][13] - Despite recent struggles, Micron's data center revenue surged by 400% year-over-year in its fiscal first quarter, now accounting for over 50% of its business [11][18] - The total addressable market for high bandwidth memory is projected to reach $100 billion by 2030, suggesting significant growth potential for Micron [18] Investment Metrics - Micron's PEG ratio is currently at 0.23, indicating it may be undervalued relative to its earnings growth potential [12][20] - The company is well-positioned to benefit from increasing demand for memory and storage as AI workloads grow more complex [17][20]