Is This AI Stock a Better Bargain Than the Magnificent Seven?

The Magnificent Seven technology stocks soared in recent years, leading gains in the S&P 500 — many of them play a major role in artificial intelligence (AI), a technology that has sparked investors’ interest. AI has the potential to revamp the way companies operate, and this could lead to cost savings, growth, and innovation.

These gains pushed valuations of the Magnificent Seven higher, but over the past few weeks, the market has shifted. Concerns about general economic growth, as well as the rapid pace of spending on AI, have weighed on stock performance, lowering the valuations of many of these market giants. In fact, some of them have fallen into bargain territory.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

But members of the Magnificent Seven aren’t the only deals in town. Is the following AI stock actually a better bargain? Let’s find out.

Image source: Getty Images.

So first, let’s identify the seven tech giants that have captured investors’ attention in recent years. They are: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. They are each leaders in their respective areas, from internet search with Alphabet to AI chip design with Nvidia.

And companies such as Nvidia and Alphabet indeed look like bargains today. But another AI stock is even cheaper, and that’s Micron Technology (NASDAQ: MU).

MU PE Ratio (Forward) Chart
MU PE Ratio (Forward) data by YCharts

Micron also has seen earnings and stock performance soar thanks to its position in the AI market. The company offers memory solutions, including DRAM, NAND, and high bandwidth memory (HBM), and it’s seeing explosive demand. In the latest quarter, Micron’s revenue jumped more than 190% year-over-year to $23 billion, a record level, and the company also reported records in gross margin, earnings per share, and free cash flow.

Customers need memory for their AI workloads, and as AI is applied more and more to real-world problems, demand may continue to climb. The next stage of AI growth is this use of AI, and it involves a process called inference — the “thinking” a large language model does to solve problems. This process is ongoing, and it requires memory.

All of this suggests that Micron could continue to deliver significant earnings growth as the AI story progresses.

So, is the stock a better bargain buy right now than the Magnificent Seven? I recently wrote about why, if I had to choose, I would favor buying Nvidia over Micron. It’s also important to take into account your investment style and comfort with risk when choosing a stock. Still, if we consider the Magnificent Seven as a whole, Micron may be a better bargain — and, particularly for growth investors, makes a great AI stock to buy now.

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $497,659!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,095,404!*

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*Stock Advisor returns as of March 27, 2026.

Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Tesla and is short shares of Apple. The Motley Fool has a disclosure policy.

Is This AI Stock a Better Bargain Than the Magnificent Seven? was originally published by The Motley Fool

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