Micron Trades at Forward P/E of ~5: Analyst Bets on AI Compute Demand
JOBhakdi · x · 2026-07-30
A investor laid out a clear bullish thesis for buying Micron ($MU), driven by the ongoing boom in AI compute demand.
- Valuation Advantage: Micron currently trades at a forward P/E of 5. Even if estimated future profits deteriorate by 50% and the P/E expands to 10, the current stock price could still be maintained.
- Demand Drivers: There is no evidence that profits will drop. Conversely, factors like Alphabet's increasing CapEx, $100 billion in long-term contracts with huge deposits, and the rapid global adoption of AI all point to sustained demand for AI memory.
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