The semiconductor {industry} is the beating coronary heart of the bogus intelligence (AI) revolution. It produces the superior chips for information facilities the place builders construct, prepare, and deploy their AI fashions. Nvidia’s (NASDAQ: NVDA) graphics processing items (GPUs) are best-in-class for these purposes.Nvidia inventory has greater than tripled during the last 12 months, carrying the corporate to a $2.2 trillion valuation. Solely Apple and Microsoft are price extra.Nvidia will seemingly proceed to create worth for buyers, so I am being facetious after I let you know to neglect in regards to the firm. However the AI {industry} is evolving rapidly and a variety of different shares within the chip house are additionally surging. Micron Know-how (NASDAQ: MU) inventory simply hit a file excessive of $113.50, surpassing its earlier best-ever stage from two years in the past. This is why it is not too late to purchase.The info middle is not the one sport on the town in terms of AIMicron is among the world’s main producers of reminiscence (DRAM) and storage (NAND) chips, each of that are more and more necessary to extracting most efficiency from Nvidia’s information middle GPUs. In reality, Nvidia selected Micron’s HBM3E reminiscence resolution to energy its newest H200 chip, which is the successor to its industry-leading H100.Micron’s HBM3E reminiscence consumes an estimated 30% much less power than competing {hardware}, and decreasing electrical energy utilization is a rising focus for information middle operators as a result of sheer quantity of computing energy commanded by AI workloads. Subsequently, it is no shock that Micron’s high-bandwidth reminiscence (HBM) is totally bought out for calendar 2024, and most of its calendar 2025 provide has additionally been allotted already.However Micron’s AI alternative is now increasing past the information middle. Each new pc and cellular gadget will quickly be fitted with AI processors, which can pace up response occasions and enhance the consumer expertise. The chipsets inside next-generation computer systems are known as neural processing items (NPUs) and are particularly designed to deal with AI workloads. They require as much as 80% extra DRAM content material than at this time’s common PC chips, and that interprets to extra income for Micron.Story continuesIn the cellular house, Micron expects AI-enabled smartphones to hold as much as double the DRAM content material in comparison with conventional fashions. Micron’s AI chips will be present in Samsung’s new Galaxy S24 gadget, which comes with a number of AI options. One among them is Stay Translate, which permits two folks to talk over the telephone in several languages, and one other is Circle to Search, which acknowledges objects in photographs and permits the consumer to immediately run a web-based search.On-device processing is the {industry}’s subsequent frontier, as a result of it should take AI out of the information middle and insert it into on a regular basis life. Demand is already hovering; Superior Micro Gadgets is a pacesetter in AI CPU and NPU applied sciences, and it has shipped thousands and thousands of AI-enabled computer systems thus far.Micron has returned to profitabilityMicron’s income plunged by 50% throughout fiscal 2023 (ended Aug. 31, 2023), dragging the corporate’s backside line to a web lack of $5.8 billion for the 12 months. Pandemic-related provide shortages precipitated the chip {industry} to overproduce, resulting in a list glut and plummeting costs.Micron has now emerged from that interval. The corporate’s income returned to progress within the fiscal 2024 first quarter (ended Nov. 30, 2023), though it nonetheless misplaced greater than $1.2 billion on the backside line. However the latest fiscal 2024 second quarter (ended Feb. 29, 2024) was a real breakout interval for the corporate.Micron delivered $5.8 billion in income, which was a whopping 57% year-over-year enhance, and it additionally crushed the corporate’s forecast of $5.3 billion. Plus, it generated a web revenue of $793 million, which marked a welcome return to profitability.CEO Sanjay Mehrotra attributed the sturdy quarter to a tightening provide demand steadiness, which had a constructive affect on costs throughout all finish markets. Nonetheless, he additionally gave a nod to the power in AI server (information middle) demand.Micron is forecasting $6.6 billion in income for the upcoming fiscal 2024 third quarter (ending June 1), which might characterize a rise of 76% in comparison with the year-ago interval. That may be a strong progress acceleration from the second quarter.Picture supply: Getty Photos.Why Micron inventory is a purchase regardless of buying and selling at an all-time highSince Micron was dropping cash up till Q2, buyers cannot use the price-to-earnings (P/E) ratio to worth its inventory. Nonetheless, based mostly on the corporate’s trailing-12-month income of $18.3 billion and its present market capitalization of $122 billion, Micron inventory trades at a price-to-sales (P/S) ratio of 6.7.That is extraordinarily low cost in comparison with Nvidia inventory, which trades at a P/S ratio of 37, and even Superior Micro Gadgets inventory, which trades at a P/S ratio of 12.9. These names deserve a premium as a result of their work within the GPU, CPU, and NPU areas is unprecedented, they usually successfully create demand for Micron’s merchandise.Nonetheless, AI is anticipated so as to add anyplace between $7 trillion and $200 trillion to the worldwide financial system over the following 10 years, and Micron’s {hardware} is a key element to unlocking that worth creation. The corporate is ramping up the tempo of innovation; it is now sampling its 12-high HBM3E information middle product, which will increase DRAM capability by 50%. Meaning corporations like Nvidia can pack extra reminiscence into every GPU, which ends up in quicker coaching and inferencing, paving the best way for extra superior AI fashions.With Micron’s income progress clearly accelerating, the all-time excessive in its inventory should not deter buyers from shopping for it — particularly contemplating its valuation and the substantial alternative that lies forward.Must you make investments $1,000 in Micron Know-how proper now?Before you purchase inventory in Micron Know-how, contemplate this:The Motley Idiot Inventory Advisor analyst group simply recognized what they imagine are the 10 finest shares for buyers to purchase now… and Micron Know-how wasn’t one among them. The ten shares that made the minimize might produce monster returns within the coming years.Inventory Advisor offers buyers with an easy-to-follow blueprint for fulfillment, together with steerage on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than tripled the return of S&P 500 since 2002*.See the ten shares*Inventory Advisor returns as of March 21, 2024Anthony Di Pizio has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Superior Micro Gadgets, Apple, Microsoft, and Nvidia. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.Neglect Nvidia: One other Tremendous Semiconductor Inventory Simply Hit a New Report Excessive, and It is Not Too Late to Purchase was initially printed by The Motley Idiot