Micron Trades on a Commodity Multiple Despite Structural AI Growth
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Micron is trading at a significant discount to its fundamentals despite strong AI-driven growth. The company reported 56.65% YoY revenue growth to $13.64B with 56.8% gross margins and 180% net income growth, driven by unprecedented AI memory demand from hyperscalers. Trading at 11.5x forward earnings versus sector peers at 23-24x, the stock appears undervalued given the structural shift in memory TAM from $35B to $100B by 2028. Key risks include execution on $100B+ capex projects, competition fr...
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