Micron: The Mirage Of A Single-Digit P/E Ratio

Micron stock surged 700% amid DRAM/NAND supply tightness—will new capacity and hyperscaler demand shifts pressure earnings? Get the outlook and act now.

Summary - After a historic rally of ~700% over the last 12 months, Micron has become one of the most valuable companies in the world, with its current $1.1 trillion market capitalization. - The company is currently benefiting from a one-time supply lag in the global DRAM and NAND supply chains. Peak earnings are expected at $163.85 per share in fiscal 2028.

- As per the Q3-26 earnings, Micron's DRAM revenues increased 67% quarter-over-quarter, with average selling prices up in the low 60% range and bit shipment volumes roughly flat. - MU is expected to invest more than $250 billion in the United States through 2035. SK Hynix is also expected to double its overall production over the next 5 years.

- What happens if this massive wave of new production enters the market during a demand slowdown? How much additional strain can hyperscaler put on their balance sheet to advance their infrastructure build-out? Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

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