Parkev Tatevosian, CFA on $MU (Nov 9, 2026)

Micron's stock fell by nearly 13% today. It has fallen by more than 25% over the past five days and by nearly 35% in the last month. Therefore, many investors are worried and asking: "Why is Micron's stock collapsing ?"

Do the results of the US elections make Micron stock something we should get rid of and avoid? What are all these repercussions resulting from the slowdown in the construction of data centers and so on?

"So, there's a lot to discuss about Micron, and I wanted to share some of those details with you here in this video. I'll share my updated view of Micron and what I think about buying, holding, or selling for the future.

I also think it's important to look at the big picture and evaluate Micron's stock for 2026 overall. And remember, it's still up 143%. It's significantly down from its all-time high.

Remember, at one point it was trading at $1,250 a share, and if you recall, I made several videos back then suggesting it was a good time to take some profits and reduce your positions.

Now, it's trading at $697. It's down almost 50% from that record high.

So, one of the big issues facing Micron right now, and directly, is the fallout from the US elections, not just for Congress, but also the local proposals that were hostile."

And of course, this is bad news for companies like Micron, which benefit from the speed at which these data centers are being built. It drives up the demand for components. And since the supply of these components can't...

At the same rate of growth , Micron is able to charge significantly higher prices for its components than it would under normal circumstances. Consequently, its stock price has skyrocketed as a result of the fact that its revenue, earnings, and cash flow have increased dramatically in recent years.

In fact, if you look at Micron's operating margin , it's at a record high of 75% over the past 12 months. And in the two most recent quarters, the company reported operating margins exceeding 80%.

I can tell you that in my nearly eight years of working full-time in this field, covering hundreds of companies, and researching thousands of quarterly financial statements, I've never seen a company report an 80% quarterly operating margin.

That's unprecedented for me. And I've covered thousands of quarterly financial statements. Micron has done it for two consecutive quarters, and they're forecasting their numbers for the next quarter.

It's likely to be the third time in a row. That's the scale of the boom this business is experiencing.

So, I've always said that this is unsustainable. This situation won't last , but as long as It's continuing, which is great for investors to take advantage of these numbers in the short term.

This growth is bound to slow . It was difficult to predict what the trigger for this slowdown would be, but it's here now . A change in leadership in Congress and the Senate could be what causes increased scrutiny of these data centers.

That's the fundamental reason for the demand for these products and components, and that hasn't changed. And that's good news for Micron." And semiconductor component companies are seeing their share prices plummet.

So, in my opinion, Micron stock was already cheap, and given the recent sell-off, it's ridiculously cheap now . It's trading at a forward P/E ratio of only 3.4. Just 3.4, right?

There's a difference when you look at a business and see concern about its future prospects, and then you look at the valuation, and the valuation wasn't assuming that the business was going to soar.

The valuation already factored in the fact that it's a cyclical business, and that boom times don't last forever, so the valuation never reached the point where it suggested a collective rush toward an endless uptrend.

It never got there . The market price may have risen, but that rise was based on rising earnings and cash flow, not because investors thought it would continue for years." Long ahead.

So you can even see my fair value estimate for Micron stock at $153.10 per share, which is more than double the current market price of $68. So I think this stock is overvalued.

However, I think we'll see a lot of headlines in the next few weeks and months about the potential impact of data centers and the slowdown in their construction. I expect you'll factor that into your expectations here .

But even if that's the case, I think Micron stock still represents great value at these prices.

I felt confident enough to recently add Micron to my portfolio. I now own Micron stock, so I'm bullish on the company's future. The near term will be volatile. I fully expect that.

But I like this company. I like its risk-reward balance . And if the price stays around these levels for a longer period, I might increase my stake.