“Micron is a Value Stock. You've Been Lied To.”
MU is undervalued as a 'value stock' due to high current earnings and low forward P/E (6.8x), supported by AI demand, but carries risk of future margin compression if supply outpaces demand.
This is Micron, a $1.2 trillion semiconductor company that's benefiting from the current AI data center buildout. And it's only trading at 6 times 2027 earnings.
So today I'm going to dive in why Micron is trading at 6.7 times next year's earnings and why despite going up 1,400% over the past 5 years and nearly 500% over the past year, the stock is actually cheaper today based on its earnings.