Micron quadruples revenue on AI demand, Broadcom launches new AI chip — load up on the AI hardware boom
Micron just reported explosive earnings thanks to massive demand for AI memory chips. At the same time, Broadcom announced a new custom AI chip partnership with OpenAI, and analysts are pointing out that Nvidia's stock is trading at a steep discount compared to its historical average.
Idea
Micron's quadrupling of revenue proves that the AI hardware boom isn't slowing down; it is actually accelerating and creating a shortage of memory chips. This positive momentum is spilling over into the entire chip sector. Broadcom's new chip deal with OpenAI shows there's massive demand for alternatives to Nvidia, but Nvidia is currently trading at a bargain price relative to the rest of the sector. Buying a basket of these AI hardware stocks captures the broad growth of the sector.