BofA Says Micron Is Trading Under 10x Earnings and Wall Street Is Completely Missing the Story - Yahoo Finance

Bank of America analyst Vivek Arya argues that Micron Technology is trading at a significant discount, with a forward P/E of just 9x, far below peers like NVIDIA (23x) and Broadcom (34x), suggesting t... Read original →

Micron’s undervaluation stems from Wall Street misapplying legacy cyclicality models to a fundamentally transformed memory market. Surging HBM demand triples wafer intensity, tightening constraints across TSV, advanced packaging, and CoWoS ecosystems—amplifying leverage for TSMC and ASE. While U.S. export controls temporarily benefit Micron in North American AI supply chains, they heighten operational risk in Taiwan, China and mainland China, inflating redundancy costs. In response to Micron’s 16 floor-priced multi-year deals, Samsung and SK Hynix may shift from price competition to capacity-locking strategies. Over the next 18 months, HBM4 adoption and AI server capex will reinforce a virtuous cycle, allowing yield-advantaged players like Micron to capture sustained valuation uplift—while laggards risk permanent exclusion from the high-end memory tier.