The author argues Micron (MU) is among the cheapest stocks in the market, trading at 5.2 times forward earnings on Oct. 29 versus 19.2 times for the S&P 500. The article links the discount to the cyclical memory-chip industry, where the current boom could be followed by a severe downturn. The author believes the market is misjudging this, citing Micron's long-term supply agreements with ceiling and floor prices that could steady its revenue. Micron has said the 2027 and 2028 memory markets will be tighter than 2026, with new capacity coming online from mid-2027 through 2028. The author states that even at 15 times forward earnings, the stock could triple.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Micronsemiconductorsvaluationmemory chips
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/29/2026 | 213.72 |
| Change that session | -0.77% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Micron Just Revealed a New Business Strategy. That Change Makes It a Screaming Buy.
The author argues Micron is shifting from selling memory chips on demand to contract-based revenue, as AI companies have consumed most available capacity and memory prices have risen. Micron has signed several multi-year agreements through 2030 with floor and ceiling prices and has locked in about 35% of revenue through 2030, which the author says should smooth out its cyclical swings, much like logic-chip peer TSMC. TSMC trades at 24 times forward earnings while Micron trades at 5.1 times, and the author believes the stock could be repriced significantly if the market recognizes this change. He describes Micron as a long-term investment that deserves a more average multiple rather than a deep discount.
- How Much Upside Is Left In Micron Stock?
Micron shares returned 398.4% in the year to October 15, 2026, versus 17.9% for the S&P 500. A Trefis scenario built from company figures projects about 21.2% (6.6% a year, excluding dividends) over three years, driven by steady revenue growth with net margin and P/E both assumed below current levels. Management says more than 75% of fiscal 2027 shipments are already committed and market conditions should stay tight through 2028, while the Idaho facility is expected to produce its first wafers in mid-calendar 2027. Three-year returns would fall to zero if revenue growth drops to 21.9%, net margin falls to 38.7% (from 63.8%), or the P/E falls to 7.7 (from 12.4). Investors should watch the net margin in the fiscal Q1 2027 results, expected on or around December 15, 2026.
- Micron, Musk, and Memory. A Big Prediction Is Lifting the Stock.
- Micron and Sandisk Hit Record Memory Margins. There's One Clear Winner.
Sandisk (SNDK) and Micron (MU) are among the best-performing memory chip stocks in 2026, with record margins as memory demand hits an all-time high while supply is tight, driving prices sharply higher. The author notes that Micron’s high-bandwidth memory (HBM) is growing faster than conventional DRAM, and that Micron has announced a custom HBM chip partnership with Nvidia. Both companies are signing long-term supply agreements to stabilize revenue, with Micron estimating about 35% of its revenue secured through 2030 and Sandisk having signed about 50% of its clients to such contracts. Micron expects industry NAND and DRAM shipments to grow at a low-to-mid 20% rate in both 2027 and 2028. The author prefers Micron, citing its HBM exposure and cheaper valuation relative to Sandisk, while still calling Sandisk a solid pick.
- Better Memory Stock: Micron vs. Sandisk
Micron (MU) and Sandisk (SNDK) are two of only four S&P 500 stocks to have tripled or more so far in 2026, with Sandisk the far bigger gainer. Micron makes HBM, DRAM and NAND memory, while Sandisk focuses on NAND flash, and AI demand, including inference and agentic AI, is driving memory needs for both. Micron's market cap tops $1 trillion versus about $200 billion for Sandisk, and their latest quarterly revenue was $54.2 billion and $8.97 billion respectively. Forward earnings multiples are 7x for Micron and 8x for Sandisk, with 27 of 29 analysts rating Micron a buy and 15 of 17 rating Sandisk a buy, implying average price targets about 74% and 60% above current prices. The author judges Micron the better pick for its breadth across memory types and its potential in humanoid robotics, while noting risks for both.
- History Says Micron Stock Gains 28% During the Fourth Quarter. Here's Why I Think Shares Will Surge Even More Before 2026 Is Over.
The article argues Micron (MU) could rally strongly before 2027, even though the stock already had an extraordinary rally earlier this year. Micron stock averaged a 28% gain in the fourth quarter over 2020–2025, but it has fallen roughly 17% from its September close of $1,065 through Oct. 16. The author points to two catalysts: upcoming earnings from major AI companies that increasingly cite memory supply constraints, and an increase in Micron's buyback authorization to $35.16 billion, with capital returns set to rise from Dec. 9, subject to CHIPS Act funding restrictions. At around $911, the stock trades at about 5.2 times forward earnings based on Wall Street's fiscal 2027 EPS estimate of about $176. Risks cited include memory's cyclicality and competition from China's CXMT.
Related markets
Latest news
- Considering electricity price cuts and a special consumption tax cut on gasoline from 01/11/2026
On 27/10/2026, Deputy Prime Minister Nguyễn Văn Thắng chaired a meeting on gasoline and electricity price management scenarios, attended by the Ministries of Finance and Industry and Trade, the Government Office, and the CEO of EVN. The Deputy PM directed EVN to review and cut costs to propose a reduction in the average retail electricity price, applicable from 01/11/2026 to 31/03/2027, with the Ministry of Industry and Trade to provide its opinion. The Ministry of Finance was tasked with reviewing a proposal to cut the special consumption tax on all gasoline types to 0% over the same period, with a report to the competent authority due before 01/11/2026.
- Nvidia's web of AI bets: smart strategy or bubble risk?
Nvidia's $3 billion investment in Meta's share sale adds to a growing portfolio of stakes, loans and guarantees that some analysts say has made it the central bank of the AI boom. Its stakes include OpenAI, Anthropic, xAI, neocloud providers CoreWeave and Nebius, and partners in Europe and Asia. Nvidia committed to buy up to $6.3 billion of unused CoreWeave computing capacity and, according to US media, holds about $36 billion in cloud backstops and a guarantee of up to $105 billion linked to an OpenAI data center. MIT's Michael Cusumano says its huge profits leave few better options, while Gil Luria of D.A. Davidson calls the approach unprecedented but says it "appears to be working." Some doubters still ask whether the deals are inflating an AI bubble.
- Intel plunges on a major guidance miss. What went wrong — and how to proceed
Intel's third-quarter revenue rose 21% year over year to 16.513 billion USD, slightly above the LSEG consensus of 16.496 billion USD, while non-GAAP EPS more than doubled to 52 cents against an estimate of 40 cents. However, its guidance showed heavy dependence on the struggling PC market, and the shares fell sharply after hours. PC sales fell 5% year over year but still account for more than half of the CCPG + DCAI products group's revenue and about 43% of Intel Products' operating income. Surging memory prices and limited manufacturing capacity are pressuring the PC market; CEO Lip-Bu Tan said demand for 2027 is significant, while CFO David Zinsner estimated a 300 million USD impact in the fourth quarter, likely similar in the first quarter. The article says analysts will need to revise estimates downward for several quarters, the rating is under review, and the price target is cut to 100 USD.
- The Humanoid Robot Market Could Be Worth More Than $7 Trillion. Here Are 3 Stocks to Own.
The article argues humanoid robots are coming soon, citing Morgan Stanley's estimate of as many as 1 billion on the planet by 2050, when the market could be worth as much as $7.5 trillion. It highlights three stocks tied to the theme. Mobileye Global (MBLY) announced early this year a $900 million acquisition of humanoid developer Mentee, with mass production and commercialization expected to begin in 2028. Qualcomm (QCOM) unveiled its Dragonwing IQ10 chipset for general-purpose robots in January, which humanoid developer Figure is already using. Tesla (TSLA) is developing the Optimus humanoid robot, which CEO Elon Musk believes could become its best-selling product.
- Interest rates on October 30 at Agribank, Vietcombank, BIDV, VietinBank, MB, VPBank, Techcombank, Sacombank, HDBank,...
A survey of online deposit rates at 35 banks as of 30/10/2026 shows wide gaps between banks and terms. Most banks list 4.75% per year for 3-month deposits, while GPBank is at 3.7% per year and SeABank at 3.95%. For 12-month terms, MBV, PGBank, Sacombank, VCBNeo and VIB each list 7% per year, and VPBank leads the 18-month term at 7.4% per year. Notably, longer terms do not always pay more: Techcombank falls from 6.25% per year at 12 months to 5.35% at 18 months, and VIB from 7% to 5.9%. The rates shown are published online rates for individual customers and may vary by deposit amount and method.
- Why Norwegian Cruise Line Stock Jumped Today
Norwegian Cruise Line (NCLH) shares rose more than 13% on Thursday after the company reported third-quarter profit above expectations. Revenue edged up less than 1% year over year to $2.9 billion, helped by more last-minute bookings and higher onboard spending, while expense cuts offset higher fuel costs tied to the Middle East conflict. Adjusted net cruise cost excluding fuel per capacity day fell 2.2% to $152. Adjusted net income reached $514 million, or $1.12 per share, beating Wall Street's projection of $0.93, and asset sales combined with profits are helping the company pay down debt. The company raised its full-year adjusted net income forecast to $789 million, or $1.70 per share, from a previous $700 million, or $1.50 per share.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.