My Top AI Stock to Buy in December (Hint: It's Not Broadcom)
Broadcom (NASDAQ: AVGO) sits at the center of the AI hardware boom, with custom accelerators for hyperscalers like OpenAI, Meta, and Alphabet. It's a major force, no question.
But the better buy for December, in my view, is Micron Technology (NASDAQ: MU). The setup is straightforward: earnings have inflected, pricing is strong, demand is durable, and the stock is still cheap relative to its growth.
Why Micron stands out right now
Micron is scheduled to report fiscal Q1 2026 (ending November) on Dec. 17. Management guided to roughly $12.5 billion in revenue, up about 45% year over year, and non-GAAP EPS of $3.75, more than double last year's $1.79.
The driver is AI memory. Accelerators from Broadcom, Nvidia, AMD, and Marvell are shipping with bigger and faster memory stacks (HBM) to feed compute and cut latency. Server memory demand is running ahead of supply, pushing pricing higher.
- Counterpoint Research estimates DRAM prices are up about 50% in 2025 so far, with server DRAM potentially doubling by the end of 2026. Overall memory pricing could rise ~50% by Q2 2026. Source
- Analysts have been lifting revenue and EPS estimates for this year and next, reflecting tighter supply and richer mix (more HBM per accelerator and more DRAM per server).
The demand story has legs
AI-specific memory is set for multi-year growth. A leading peer, SK hynix, has guided to roughly 30% annual growth in the AI memory market through 2030. That's driven by rising model sizes, more tokens per query, and bigger batch sizes-each step increases memory content and bandwidth requirements.
Micron is positioned across HBM, DDR5, and high-capacity data center SSDs. As long as supply remains disciplined and HBM yields keep improving, Micron can compound revenue and margins beyond the next couple of years.
Valuation: still attractive after a big run
Even after a 166% year-to-date move in 2025, Micron trades around 27x trailing earnings-below the Nasdaq-100's ~32x. The forward multiple near 13x looks even better given the expected earnings ramp.
On a growth-adjusted basis, Micron's PEG ratio sits near 0.18 (based on five-year earnings growth estimates). A sub-1 PEG suggests the stock is undervalued relative to its growth; 0.18 leaves room for upside if execution holds.
Micron vs. Broadcom: why prefer memory today
- Pricing power: Memory is in a favorable part of the cycle. AI demand + tight supply = stronger ASPs and mix.
- Operating leverage: Each turn of pricing and utilization expands margins quickly for a memory producer.
- Valuation skew: Despite outperformance, Micron is cheaper than many AI peers on forward earnings and PEG.
What to watch on Dec. 17
- HBM output, yields, and customer ramps (how quickly HBM3E moves and commentary on HBM4 timing).
- Pricing commentary for server DRAM and HBM into calendar 2026.
- Supply additions and capex discipline across the industry (any signs of oversupply would be the risk).
- Mix: data center vs. PC/mobile, and any visibility on hyperscaler commitments.
Bottom line
Micron has the trifecta investors want: accelerating earnings, favorable industry structure, and a multiple that hasn't run ahead of fundamentals. If you're looking to add AI exposure into year-end, Micron offers a cleaner risk/reward than many headline chip names.
For those who prefer primary sources, check the company's guidance and presentations on Micron Investor Relations.
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