BofA Says Micron Is Trading Under 10x Earnings and Wall Street Is Completely Missing the Story - 24/7 Wall St.

Bank of America’s senior semiconductor analyst Vivek Arya argues that the memory chip industry has shifted from a cyclical investment play to a critical component of the AI era, yet the market still p... Read original →

Micron’s sub-10x P/E reflects Wall Street’s outdated view of memory as cyclical, not structural. Technically, HBM4/HBM4E’s reliance on TSV and CoWoS makes DRAM a system bottleneck, turning TSMC’s capacity into a strategic lever. On compliance, U.S. export controls boost Micron’s near-term North American share but accelerate China’s HBM self-reliance, threatening the post-2027 supply balance. Samsung and SK Hynix may abandon price wars, opting instead for co-development deals with hyperscalers to counter NVIDIA’s and Broadcom’s valuation premiums. If Micron sustains >80% gross margins and delivers HBM4 on schedule, its multiple could re-rate toward 30x within 18 months; if cloud customers renegotiate or Taiwan, China ramps HBM faster than expected, today’s bullish thesis collapses.