Three Chip Stocks Still Cheap Inside a Record-Setting Index

Something odd is happening as the S&P 500 prints new highs: the index is getting cheaper, not pricier. According to Motley Fool analysis, the benchmark is up 13 percent year to date yet trades at just 19.4 times forward earnings. Parameter data points the same way; the index changes hands at roughly 19 times forward profits, below its five-year average of 19.8. The narrator's point is that the forward earnings multiple is the whole story: corporate profits are outrunning share prices. With 25 index stocks up more than 100 percent this year, the rally looks broad rather than narrow. This section draws on Fool and Parameter records.

When Profits Grow Faster Than Prices

The historical anchor is Nvidia in mid-2023. When the company first crossed a 1 trillion dollar value, its forward multiples looked sky-high; then the data-center boom multiplied profits, multiples cooled into the 30s, and early shareholders banked gains near 500 percent. The narrator argues the same setup is forming across three semiconductor names today. The logic is simple: when profit growth beats price growth, stocks that look expensive now read cheap a year later. The math only works while growth lasts; stalled profits turn a high multiple into a trap.

The Memory Fortress: Micron

First up is Micron Technology. According to the company's official release, fiscal 2026 revenue hit a record 133.19 billion dollars, with fourth-quarter revenue reaching 54.23 billion. The engine is enterprise SSDs : they now deliver more than 70 percent of total NAND revenue, with quarterly data-center SSD sales alone near 10 billion dollars. Management says its strategic customer agreements underpin the durability of its finances, and the narrator points to obligations above 150 billion dollars running to 2030. The stock still trades at about 6 times forward earnings. This section draws on Micron records.

Second is Marvell Technology, the interconnect play. Per its official release, second-quarter revenue rose 37 percent to 2.74 billion dollars; data-center revenue jumped 46 percent to 2.17 billion, nearly 80 percent of total sales. Its 800-gigabit optical processors and 1.6-terabit parts link cloud campuses together, while the custom-silicon arm stacks multi-year deals with large cloud buyers. Yahoo analysis notes management lifted its fiscal 2028 revenue target to about 18 billion dollars, with earnings expected to double every two years. The long-run PEG near 1.42 cited in the video makes the shares look reasonable against that pace. This section draws on Marvell and Yahoo records.

The Contract Shield: SanDisk

Third is SanDisk, transformed since its early-2025 split. StorageNewsletter figures show fiscal 2026 revenue up 175 percent to 20.25 billion dollars; fourth-quarter revenue was 8.97 billion and data-center sales grew 437 percent. The real story is contracts: Pulse2 records show 10 NBM deals across eight customers representing at least 93.9 billion dollars of expected revenue at floor pricing . A 59.8 billion dollar remaining-performance balance in the 10-K filing plus a 15.5 billion dollar buyback authorization complete the picture. The shares trade at 8.4 times forward earnings. This section draws on Pulse2 and StorageNewsletter records.

The common ground is supply. Infotechlead records show the AI boom squeezing DRAM, HBM and NAND supply at once, with enterprise storage demand growing more than 80 percent. Constrained capacity puts a floor under prices, and floor prices protect free cash flow generation. At Micron, wafer limits tied to high-bandwidth memory output should last into 2028; at SanDisk, two-thirds of bit output falls under contract by 2028. For investors the message is that supposedly cyclical names are taking on a different financial character once revenue is locked in. This section draws on Infotechlead records.

Net: a record index and cheap stocks can both be true at once; what matters is profit growth, not the price level. Micron's record balance sheet, Marvell's data-center weight and SanDisk's contract shield back the same thesis from three sides. Yet if forward estimates miss, the multiples become traps, so smart money tracks contract quality and cash generation quarter by quarter. A stance that refuses to pile a portfolio onto one story and keeps asking where the profit comes from earns its premium in this market.