Micron: A 9X FWD P/E Is Unacceptable

Sep. 27, 2024 10:30 AM ETMicron Technology, Inc. (MU) Stock12 Comments
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The Asian Investor
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Summary

  • Micron's Q4 business is on fire due to surging demand for high-bandwidth memory products, especially HBM3E.
  • AI-driven demand for HBM is set to propel Micron's growth in the coming quarters resulting in a massive expansion of the total addressable market.
  • Micron's guidance for Q1’25 implies the addition of $1.0B in revenue Q/Q. Margins are expected to continue to grow.
  • Micron's 9X forward P/E ratio is woefully inadequate given its catalyst backdrop and strategic HBM positioning in the fast-growing AI market.

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Shares of Micron Technology (NASDAQ:MU) surged 15% after the memory and storage maker presented it earnings sheet for its fourth fiscal quarter on Wednesday. Micron crushed expectations on both the top and bottom line which is due to the

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