Missed Out on Nvidia? Buy This Magnificent Artificial Intelligence (AI) Stock Before It Soars At Least 45% in 2024

Nvidia (NASDAQ: NVDA) has been one of the hottest stocks on the market in 2023, with eye-popping gains of 235%. That impressive surge is justified thanks to the astronomic acceleration in the chipmaker’s top and bottom lines on the back of booming demand for artificial intelligence (AI) chips.

However, the big pop in Nvidia stock this year inflated its valuation. It is now trading at 27 times sales, which is higher than its five-year average price-to-sales ratio of 20. The trailing earnings multiple stands at 65.

While Nvidia seems capable of justifying that valuation thanks to its dominant position in the market for AI chips, which is likely to translate into terrific growth in 2024, investors may be looking for a cheaper alternative to capitalize on the proliferation of AI.

Enter Micron Technology (NASDAQ: MU). Shares of the memory specialist have shot up 74% this year, and its latest earnings report tells us that more upside is in the cards in 2024 thanks to AI. What’s more, Micron stock is trading at a very attractive valuation despite its rally. Let’s look at the reasons why buying this chipmaker is a no-brainer right now.

Micron Technology is set to ride the AI wave

Micron Technology released its fiscal 2024 first-quarter results (for the three months ended Nov. 30) on Dec. 20. The company’s revenue jumped 16% year over year to $4.7 billion, exceeding its guidance of $4.4 billion and Wall Street’s expectation of $4.58 billion.

Micron reported a non-GAAP (generally accepted accounting principles) loss of $0.95 per share for the quarter. While that was higher than the year-ago period’s loss of $0.04 per share, the figure was smaller than Micron’s guidance of a loss of $1.07 per share. Analysts were expecting Micron to report a loss of $1.01 per share. However, the improving conditions in the memory market helped the chipmaker outperform expectations.

The memory market was in dire straits earlier thanks to oversupply.