AI Infrastructure Plays: Micron and Broadcom Positioned for Recovery Amid Nasdaq Correction

The Nasdaq Composite has officially entered a correction phase, declining approximately 10% from its recent peaks. This downturn is attributed to a combination of geopolitical instability in the Middle East, renewed tariff concerns, persistent inflation, and a broader market rotation away from high-valuation technology equities. Despite the volatility, the fundamental drive toward artificial intelligence infrastructure remains intact. Hyperscalers continue to invest aggressively, with total capital expenditures reaching $720 billion, signaling that the AI buildout is not pausing despite macroeconomic headwinds. Micron Technology (MU) is highlighted as a critical provider of High-Bandwidth Memory (HBM), essential for Nvidia's Blackwell and Vera Rubin GPUs. With HBM inventories sold out for the year and a limited competitive field consisting only of Samsung and SK Hynix, Micron is positioned for a significant ramp-up. From a valuation perspective, Micron currently trades at a forward P/E of approximately 6x, a sharp discount compared to the 30-50x multiples seen in other AI chip stocks prior to the sell-off. The company is reporting triple-digit revenue growth, with earnings per share projected to quadruple this year. Complementing the memory layer, Broadcom (AVGO) serves as the central nervous system of AI anatomy. The company specializes in custom application-specific integrated circuits (ASICs), known as XPUs, providing tailored hardware solutions for major cloud providers including Alphabet. For long-term investors, the current correction represents a strategic entry point into high-quality compounders that provide the physical backbone of AI, moving beyond software hype into essential hardware infrastructure.