Micron Is Trading at About 7 Times Next Year’s Earnings Estimate Even After Crossing $1 Trillion in Market Cap.
Here’s Why That Multiple Looks Nothing Like Nvidia’s
Shares of Micron Technology (NASDAQ: MU) have soared over the past year as memory shortages fueled explosive growth in revenue and profits. With the stock up by more than 700%, the company’s market cap recently crossed $1 trillion, yet the stock still trades at a cheap-looking valuation of about 7 times next year’s consensus earnings estimate. That valuation sits well below Nvidia’s roughly 18 forward price-to-earnings (P/E) multiple.
So why the discount on Micron — and is it warranted? Investors are cautious despite booming demand In its fiscal 2026 third quarter, Micron delivered a 346% year-over-year revenue jump, and analysts expect a similar increase in fiscal Q4. But investors aren’t ready to start ignoring the memory market’s boom-and-bust history.