Trading at 7x Earnings in an AI Boom?
This Is the ‘Stupid Cheap’ Stock Your Financial Advisor Won’t Tell You About Quick Read – Micron (MU) reported fiscal Q2 2026 revenue of $23.9B, up 196% year-over-year, with Q3 guidance for $33.5B revenue and 81% gross margin, while trading at just 7x forward FY 2027 earnings compared to NVIDIA and Broadcom at 24x despite supplying the HBM memory critical to AI infrastructure
The company achieved $6.9B in free cash flow last quarter, approved a 30% dividend increase, and has begun HBM4 volume shipments with multi-year customer contracts replacing the old one-year model. – Micron’s AI memory dominance is protected by structural constraints: HBM chip manufacturing requires years of cleanroom build-out and construction, customers can only receive 50-66% of their demand in the medium term, and supply-demand stays tight through 2026, creating a supply-constrained environment unlike the 2018 memory downcycle. – Consider Micron Technology (NASDAQ:MU) here because a forward FY 2027 earnings multiple of 7x on a company sitting at the literal center of the AI memory bottleneck is a valuation that almost never exists at the heart of a megatrend, and the only reason it does now is that your advisor still thinks “memory” means 2018. The numbers do the arguing. Micron just reported fiscal Q2 2026 revenue of $23.9 billion, up 196% year-over-year, with non-GAAP EPS of $12.20 and gross margins of 75%.
Guidance for Q3 calls for $33.5 billion in revenue, EPS of $19.15, and gross margin near 81%. Against a share price of $884 as of this writing, the market is still pricing this like a commodity DRAM shop heading into a downcycle. It is doing the opposite.