To The Moon

Micron Technology (NASDAQ: MU) has been one of the hottest performers on the stock market over the past year, but its shares have witnessed a substantial pullback after reaching a 52-week high on June 25.

Specifically, Micron stock is down nearly 28% from its 52-week high. This steep slide in the memory specialist's shares is quite surprising when we consider that it reported incredible results toward the end of June, along with impressive guidance. Clearly, external factors are impacting this high-growth company.

So, even if Chinese memory manufacturers bring more supply to the market, undersupply is likely to persist. After all, shipments of personal computers and smartphones are taking a hit due to higher memory prices and limited supply, creating pent-up demand in these markets. So, Micron's addressable market remains robust, and that's precisely why the company's earnings growth is projected to remain strong over the long run.

So, savvy investors can consider using the recent pullback in Micron to buy more shares, as it trades at just 19.5 times earnings. The forward earnings multiple of 5.4 is even more attractive, indicating that Micron is extremely undervalued when the company's impressive growth potential is considered. All this makes this AI stock a no-brainer buy, especially given that it is showing signs of stepping on the gas again after an 18% pop on July 30.