$Micron Technology(MU)$ Even at $500, MU's P/E ratio is just 24x versus the semiconductor sector's 35-60x. More importantly, MU's forward P/E is only 9-9.2x. What does that tell you about where we're heading, with no end in sight?
$Micron Technology(MU)$ Seagate's earnings are great, and I'd hate to be short the stock. But Micron's last earnings were substantially better in pretty much every metric. I'm guessing Micron goes much much higher.
$Micron Technology(MU)$ Seagate is forecasting $5 per share next quarter, with the stock at $650. Micron is almost $20 per share, priced at $512. I think Micron has a better moat. It seems pretty clear where to put your money.
$Micron Technology(MU)$ I'll repeat the three irrefutable facts about Micron. 1. Everything they can produce for 2016 is already sold. 2. Gross profits for the rest of 2026 will exceed 80%. 3. Demand continues to grow faster than supply can grow. Because of these three points, the price of Micron will exceed $1,500 in the next 12 months. It is a beast!
$Micron Technology(MU)$ The CAGR is .15. To reach 1, it takes a 6x multiple in price, or $2,970 per share. Cyclicality is all that has been holding this down, but fixed pricing contracts have eliminated that problem. I’m projecting between $2,500 and $3,000 per share within 18 months. AI is NOT a one-off situation; it’s transformative for humanity, like the telephone, autos, steel, or computers.
$Micron Technology(MU)$ The most appealing thing about Micron stock is that it's incredibly cheap despite its strong performance. The trailing earnings multiple is 22, while the forward earnings multiple is even more attractive at just 8.