Since hitting its April low, $Micron Technology(MU)$ has surged 101% — including a 14.8% jump in just the past 5 days, crushing the S&P 500’s 0.69% gain over the same period.
Some sharp traders in our community caught this wave:
🎉 Huge congrats to @wywy for earning $4,188 returns on $Micron Technology(MU)$.
🎉 Huge congrats to @Am3n_Tao for securing $2,954 returns on $Micron Technology(MU)$.
What’s driving MU’s momentum?
$7B HBM packaging plant in Singapore
$200B U.S. investment plan
Industry-first 1γ LPDDR5X for smartphones
12-layer 36GB HBM4 for AI data centers
Mature 1β DRAM + advanced packaging for higher AI workloads
Micron: Valued As If There Is No AI
Micron’s forward P/E for FY2027 is just 7 — incredibly low for an AI infrastructure leader. Even on today’s numbers, MU trades at a forward P/E of 13 and Price/FCF of ~7 — as if AI didn’t exist. Many of its key valuation ratios sit well below industry medians.
An alternative perspective would be a valuation chart based on the Forward P/E ratio relative to analysts' revenue growth forecasts for current year, which tends to be more appropriate for margin-rebuilding and capex-heavy companies.
Based on this chart, due to lower forecasted revenue growth $Intel(INTC)$, and $ARM Holdings(ARM)$ are trading at a premium.
On the other hand, $Taiwan Semiconductor Manufacturing(TSM)$, and $Micron Technology(MU)$ are currently trading below their average valuation levels.
Trading Perspective
MU tends to fall fast but climb steadily — a dream for swing traders who buy the dips. The $130 mark remains a stubborn resistance level after failing to break through in June 2025.
With raised Q4 guidance, can MU finally smash through $130 and keep running?
Is Micron the most undervalued AI infrastructure play on the market right now?
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