This Beaten-Down Nasdaq Stock Could Become the Next Big AI Play
Weak memory demand has weighed heavily on Micron Technology (NASDAQ: MU) stock since the beginning of 2022, sending shares of the memory specialist down 37% over the past 15 months thanks to a sharp decline in its revenue and earnings. However, investors gave the company's latest results a big thumbs up thanks to the emergence of a generative artificial intelligence (AI), a massive catalyst that could supercharge its growth in the long run.
More recently AI grabbed the limelight thanks to the immense popularity of OpenAI's ChatGPT. The company designed a chatbot capable of writing poems, creating text, composing emails, and writing code and essays based on user prompts. ChatGPT's success and the ability of chatbots to disrupt multiple industries have triggered an AI arms race, with multiple companies committing to pouring billions of dollars into this market as they try to make the most of the next big tech trend.
There's plenty of reason for companies to enter the race and investors to be hyped; after all, Grand View Research forecasts 34% annual growth for the generative AI market through 2030. And Micron believes it is well-positioned to benefit from the secular growth opportunity in AI.
Source Fool.com
