Is the current market a bubble as some think?

No, according to Kelly the current expansion is backed by real earnings, not speculation, unlike the dot-com bubble.

What are the risks for Micron stock?

Risks include semiconductor cyclicality, economic downturns, and intense competition.

Micron Still 'Pretty Cheap' Despite AI Rally: Legato CIO

Ryan Kelly, CIO of Legato Financial, argues that Micron Technology (MU) still offers significant value despite its AI-driven rally. He emphasizes that the current market expansion is based on solid fundamentals, not speculative hype.

June 8, 2026

2 min read

Source: Benzinga

Ryan Kelly, Chief Investment Officer at Legato Financial, believes that Micron Technology Inc. (MU) remains undervalued despite its strong performance driven by artificial intelligence. In a conversation with Schwab, Kelly stated that the current market expansion is grounded in real earnings, not a dot-com bubble.

Analyst's Rationale

Kelly argues that Micron's valuation is still attractive compared to its peers in the semiconductor sector, especially as demand for memory chips used in AI applications continues to grow. He noted that the company benefits from long-term structural trends, making its stock "pretty cheap" at current levels.

Context

Kelly's comments come after a strong run for Micron shares, which have gained over 60% in the past year thanks to rising AI demand. However, the analyst believes the market is still in the early stages of a growth cycle, and Micron has significant upside potential.

What to Make of This

While optimism around Micron is high, investors should consider risks associated with semiconductor cyclicality and economic downturns. Nonetheless, Kelly's analysis suggests that fundamentals support the stock over the long term.

Frequently Asked Questions

Kelly believes Micron's valuation is attractive relative to peers, and demand for memory chips in AI applications is still in early stages.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.