Micron Technology is currently trading at roughly 5.4x to 6x forward earnings for fiscal years 2027 and 2028, a multiple nearly four times lower than the S&P 500 which typically trades around 20x. SK Hynix, its primary competitor in high-bandwidth memory, has announced a $38 billion investment in new chip factories in South Korea, but this capacity will not materially hit the market until 2028 at the earliest, given three-to-five-year semiconductor fab construction timelines. Micron has secured multi-year HBM supply agreements with minimum purchase commitments extending through 2030, which could rewrite the usual volatile semiconductor playbook. The stock may appear significantly undervalued if the company maintains its HBM pricing power and production ramp amid sustained AI-driven demand.
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