AI Infrastructure Demand Creates Valuation Gap for Micron and CoreWeave

Despite the sustained growth of artificial intelligence infrastructure, several key players in the semiconductor and data center space are trading at valuations that analysts argue do not reflect their fundamental growth trajectories. Micron Technology (MU) and CoreWeave (CRWV) are highlighted as primary examples of companies where market sentiment has decoupled from operational performance. The primary catalyst for this growth is the critical shortage of high-bandwidth memory (HBM), which is essential for AI data centers. HBM production is significantly more resource-intensive than traditional DRAM, requiring three times the wafer capacity per gigabyte. With demand for these chips expected to grow at a compound annual rate of 30% through 2030, supply constraints are likely to persist for several years. Micron recently reported strong fiscal Q2 2026 results, featuring a 682% year-over-year increase in earnings and a near-tripling of revenue. Despite these figures, the stock has faced headwinds due to concerns over rising capital expenditures and margin sustainability. Currently, the company trades at a sales multiple of 8.2 and a forward earnings multiple of 7.6. Similarly, CoreWeave is trading at approximately 7 times sales, despite a massive backlog of business as hyperscalers seek dedicated AI data center capacity. Analysts suggest that if Micron's valuation aligns with the Nasdaq 100 average of 23x earnings, based on an estimated EPS of $98.91, the stock could see significant appreciation as the memory supply deficit continues through the end of the decade.