Despite growing fears of an overheated tech sector, tech analyst Daniel Newman argues that the artificial intelligence (AI) market rally is barely underway, citing undervalued stocks like Micron Technology Inc. (NASDAQ:MU) as evidence that everyday investors haven’t missed the boat.
The AI ‘Parking Lot’
As Wall Street debates whether the meteoric rise of AI-driven tech stocks has peaked, Newman emphatically dismisses the notion that investors are too late. Responding to claims that the industry is already deep into its growth cycle, Newman offered a much more nascent timeline during a recent CNBC appearance.
“I would argue we are actually in the parking lot right now where we’re making a hot dog, we’re having a beer, and getting ready for pre-game,” Newman stated, illustrating how early we are in the adoption curve.
To prove that the broader tech market still holds massive untapped potential beyond the biggest players, Newman highlighted Micron. “Micron’s trading at eight times forward right now based on its estimates,” he noted, emphasizing that “it is not late to get into AI.”
Dismissing The Bubble Myth
Newman also firmly pushed back against persistent warnings of an impending dot-com-style crash. Defending market leaders, he pointed out that Nvidia Corp. (NASDAQ:NVDA) is currently trading at reasonable multiples when weighed against its “trillion-dollar order book.”
Expanding on his thesis via X, Newman argued that current capital expenditure metrics fail to account for the “10s of trillions” in economic growth AI will soon deliver.
Because we are so early in the AI lifecycle, he believes critics are heavily overcounting the spending side while ignoring the “massive productivity gains coming.”
A ‘Swift Reversion’ Warning
However, not all of Wall Street shares this tailgate-style optimism. Providing a starkly contrasting view on CNBC, BTIG Chief Market Technician Jonathan Krinsky warned that the broader market is dangerously failing to keep pace with mega-cap tech names.
Noting severe divergences reminiscent of the late 1990s, Krinsky cautioned that the market is actually in the “later innings” of the AI trade, predicting a “swift reversion lower” rather than a prolonged pre-game celebration.
How Has Micron Performed In 2026?
Shares of MU have surged by 178.66% year-to-date, while the Nasdaq Composite has advanced by 13.08% over the same period. It closed 6.50% higher on Monday at $795.33 apiece and it was 2.43% lower in premarket on Tuesday.
Over the last month, MU was up 89.10%, and it rose 229.86% over the last six months. Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the short, medium, and long terms, with a solid growth ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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