Micron Tops $1 Trillion but Trades at 7x Earnings as Memory Cycles Cap Its Premium
Updated
Updated · Yahoo Finance · Aug 19
Micron Tops $1 Trillion but Trades at 7x Earnings as Memory Cycles Cap Its Premium
3 articles · Updated · Yahoo Finance · Aug 19
Summary
Micron has crossed a $1 trillion market value after a more than 700% share surge, yet the stock still trades at only about 7 times next year's earnings estimate.
A 346% year-over-year revenue jump in fiscal 2026 third quarter and another similar rise expected in Q4 have not erased investor caution over memory's boom-bust pattern.
Micron's revenue has fallen by as much as 50% in a single year over the past decade, and that pricing volatility keeps its multiple far below Nvidia's roughly 18 forward P/E.
Management said in June it has no clear line of sight on when supply will catch up with demand, supporting near-term pricing strength, but capacity additions from Micron and rivals such as SK Hynix could narrow the gap after 2028.