After scanning semiconductor stocks with PEG, Micron surprisingly is the cheapest.

PEG less than 1 usually indicates that growth is mispriced.
PEG greater than 2 begins to enter the danger zone.
Here are the PEG ratios of various companies:
• $INTC approximately 2.8 times
• $LRCX approximately 2.0 times
• $KLAC approximately 2.0 times
• $AMAT approximately 2.0 times
• $ASML stock price about 1.7 times
• $ALAB approximately 1.6 times
• $ARM about 1.5 times
• $ANET approximately 1.5 times
• $LITE approximately 1.3 times
• $TSM approximately 1.1 times
• $CRDO approximately 1.0 times
• $NVDA ~1.0x
• $COHR approximately 0.9 times
• Avago Technologies (AVGO) about 0.9 times
• $AMD approximately 0.7 times
• $SNDK approximately 0.7 times
• $MRVL approximately 0.7 times
• $AAOI approximately 0.6 times
• $ON approximately 0.5 times
• $MU approximately 0.4 times
You read that right, Nvidia only has a 1x PEG, while Micron is at 0.4x. The lowest in the entire market.
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Speaking of this, I have to mention MU.
Micron Technology, which makes memory. In many people's impression, memory is a cyclical, low-margin, tough business. But this time, the situation is a bit different.
In just over two years, Micron's quarterly profit is expected to grow from about $2 billion to nearly $36 billion.
An 18-fold increase. This is not a cyclical recovery; it’s a structural demand explosion.
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So the question is, why is Micron so impressive?
Three words. AI, HBM, bottleneck.
This happens when artificial intelligence turns memory into high-bandwidth memory (HBM), dynamic random-access memory (DRAM), and storage devices bottlenecks. GPT-5.5, Claude Opus 4.7, and Gemini 3 Pro are all working toward larger contexts, longer reasoning, and persistent proxy memory.
In plain language, it means AI models are getting bigger and need more memory.
And not just ordinary memory, but high-end HBM.
HBM capacity is limited, and only a few manufacturers can produce HBM.
No need to say more about Micron.
What does this mean?
It means memory has shifted from being a "commodity" in the past to a "strategic resource" now.
Pricing power has moved from buyers to sellers.
This is somewhat similar to the chip shortage in 2021, but the underlying logic is completely different. That was due to supply chain disruptions; this is a demand structural explosion.
The market still seems to view Micron with old eyes.
Thinking it’s a cyclical stock, expecting it to repeat the past, believing its high growth is unsustainable.
But what if AI-driven memory demand is structural?
What if HBM capacity bottlenecks can’t be solved in a year or two?
What if Micron’s profit center has permanently moved to a higher level?
Then a PEG of 0.4x isn’t cheap; it’s outrageous.
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Brothers, look at that PEG list, and there’s an interesting phenomenon.
Traditional equipment giants LRCX, KLAC, AMAT are around 2.0x, while AI chip design companies NVDA, AMD are below 1.0x.
What does this indicate?
It shows that the market’s pricing logic has shifted from "who sells shovels" to "who struck gold."
Equipment companies are shovels sellers—stable but with limited growth.
Chip designers are miners of gold—risky but with high returns.
And Micron, it’s both a shovel seller (DRAM, NAND) and a gold miner (HBM).
Yet its valuation still stays in the shovel-selling range.
This isn’t a pricing error; what is it?
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Not trying to recommend Micron,
I just think, in an era where AI is changing everything, many traditional valuation frameworks are failing.
The PEG indicator itself has limitations; it assumes growth is linear and sustainable, but the demand explosion driven by AI might be non-linear and phased.
So when looking at PEG, you can’t just focus on the number.
You need to understand the source of that growth, whether it’s cyclical or structural, and whether the market is still pricing new companies with old stories.
Thanks to EFyurmIEQUITIES for the chart creation.