Micron’s cheaper valuation fuels case it could outpace Broadcom in AI growth

Two chipmakers are riding the same AI spending wave. They are priced very differently. Micron Technology trades at forward price-to-earnings multiples of roughly 6-13x. Broadcom sits around 18-30x. That gap sits at the center of a question The Motley Fool recently put to investors: which of these two semiconductor names is the better AI buy over the next three years? The case for Micron: memory is the bottleneck Micron leads in high-bandwidth memory, or HBM, plus the DRAM and SSD storage that fill data centers. Micron reported fiscal Q4 2026 revenue of $54.2 billion, a 379% jump from the same quarter a year earlier. Full-year fiscal 2026 revenue came in at $133.2 billion, up 256%. Micron guided for Q1 of fiscal 2027 revenue of $61.5 billion, give or take $1.5 billion, with expectations of sequential revenue growth throughout fiscal 2027. The company also raised its long-term supply commitments to $32 billion. Tight supply conditions in memory are expected to persist through 2028, according to the research findings on the company. Analyst consensus on Micron is a Strong Buy, with a potential price target upside of about 60% based on late September figures. The case for Broadcom: cus...