Micron Trades at Just 5 Times Forward Earnings. Here's Why the Market Doesn't Trust the Memory Supercycle Yet.
Micron's management believes demand will outstrip supply until at least 2028.
Overview
Many tech stocks have soared in recent years thanks to the rise of artificial intelligence (AI). One is computer memory manufacturer Micron Technology (NASDAQ: MU), whose shares skyrocketed over 600% in the past 12 months through the end of July.
Despite this amazing run, Micron's share price valuation looks cheap, given the stock's forward price-to-earnings ratio of about 5. That's around a low point for the past year.
Details
In addition, Micron shares are down from their 52-week high of $1,255 reached in June. This is rooted in market concerns that the memory supercycle has peaked, resulting in a stock sell-off. But has it, or will Micron continue to benefit from AI-driven demand? Here's a deeper look into the situation.
Source
Originally published at www.fool.com.