Bank of America highlights Micron’s low valuation relative to AI peers after seven consecutive EPS beats and record margins.
Micron Technology reported fiscal Q3 revenue of $41.46 billion, surpassing estimates by 17.6%, and non-GAAP EPS of $25.11, beating forecasts of $20.28. The company’s GAAP gross margin reached 84.6%, up from 37.7% a year earlier, reflecting a structural shift in its business model.
Analysts note Micron trades at 9x forward earnings, far below NVIDIA’s 23x and Broadcom’s 34x, despite its role in AI memory demand. The company’s Q4 guidance projects $50 billion in revenue and $31 EPS, both rising sequentially.
Bank of America’s Vivek Arya argues memory stocks are now AI essentials, with high-bandwidth memory requiring 3-4x more wafers and long-term customer agreements stabilizing pricing.