Legato Financial Chief Investment Officer (CIO) Ryan Kelly argues that the current market expansion is driven by solid fundamentals, highlighting that companies such as Micron Technology Inc. (NASDAQ:MU) still offer significant value.
Grounded In Earnings, Not Hype
In conversation with Schwab Network, Kelly emphasized that the market’s momentum—which has pushed the S&P 500 to consecutive weeks of gains—is justified by real corporate profits. When asked about comparisons to past manias, he firmly stated that this is “not the Dot-Com bubble.”
“I think the big difference is the earnings and the fact that all of these companies are being so successful and posting their earnings improvements,” Kelly explained.
He noted that the initial phase of the AI trade, which focused heavily on infrastructure and data centers, is now transitioning toward actual monetization and positive cash flows.
The Semiconductor Value Play
While mega-cap tech valuations have soared, Kelly continues to find targeted opportunities in the hardware companies powering the AI revolution.
Alongside Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)—which he described as an “absolute essential part of the supply chain”—Kelly singled out memory chipmaker Micron.
“Micron, despite the incredible run, I still think is pretty cheap from a kind of fundamental, historical perspective,” Kelly said. As data centers increasingly demand massive memory inputs to power AI output, Micron provides an attractive entry point.
Looking Beyond The Tech Sector
Despite his optimism, Kelly acknowledged the difficulty of navigating a top-heavy market. To mitigate risk, he advised investors to look for the AI story outside traditional tech.
He pointed to Nucor Corp. (NYSE:NUE), which provides turnkey data center solutions, and Rolls-Royce, which is developing modular reactors to meet soaring energy needs.
However, Kelly warned against blind investor “FOMO,” cautioning that broader macroeconomic risks—such as prolonged geopolitical conflicts in Iran and potential AI-related job losses—could eventually threaten the rally.
To explore the underlying factors driving the chipmaker’s valuation and the broader supply dynamics, this analysis of Micron’s AI memory cycle breaks down the surging demand for high-bandwidth memory.
How Has MU Performed In 2026?
In comparison with the Nasdaq 100’s 20.64% year-to-date advance, shares of MU have advanced by 248.97% over the same period. It closed 7.74% lower at $996.00 apiece on Thursday, and it was down 2.95% in overnight trading.
Over the last month, MU stock was up 72.78%, and it rose 339.44% and 864.65% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the long, medium, and short terms, with a poor value score.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Poetra.RH / Shutterstock
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