Quick Read
Micron (MU) trades at a forward PE of just 8 with a PEG ratio of 0.259, posting an EPS beat of 39% in its most recent quarter and delivering eight consecutive quarters of dominant earnings beats, scaling from $0.42 in early 2024 to $12.20 most recently, with Cloud Memory Business Unit revenue of $5.28 billion at 66% gross margin.
Unlike the dot-com bubble where companies were valued on unmonetized eyeballs with deferred profitability, Micron’s forward multiple is compressing because realized earnings are expanding faster than the stock price, with an operating margin of 68% and return on equity of 40%.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Micron Technology wasn’t one of them. Get them here FREE.
Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, used his recent appearance on Barron’s Streetwise podcast to push back on the loudest narrative in markets right now. “I think about the dot-com bubble, and I don’t think we’re close to it,” Slimmon said. His evidence sits in plain sight on the semiconductor tape, and the cleanest illustration is Micron.
The Valuation Argument Starts With Micron
Host Jack Hough framed the setup by pointing out that Micron Technology (NASDAQ:MU) “was recently the third cheapest stock in the S&P 500 if you just look at the price-to-earnings ratio,” despite the company sitting at the center of the AI memory supply chain. Slimmon’s response was that memory stocks “aren’t all that expensive,” recalling that during the actual late-1990s mania “some of them traded to triple-digit multiples.”
The math backs him up. Micron trades at $751 with a trailing PE of 35 and, more importantly, a forward PE of just 8. A PEG ratio of 0.259 signals that earnings growth is outpacing the multiple by a wide margin. In 1999, semiconductor leaders routinely commanded multiples that would imply Micron should be priced several times higher than it is today.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Micron Technology wasn’t one of them. Get them here FREE.
Earnings Are Doing the Heavy Lifting
Slimmon’s broader point is that investors are “being very rational” in how they price AI exposure. The Micron earnings cadence supports that read.
In its most recent quarter, reported March 18, 2026, Micron posted EPS of $12.20 against an estimate of $8.79, a 39% beat. The prior quarter, reported December 17, 2025, delivered $4.78 on revenue of $13.64 billion, up 57% year over year, with the Cloud Memory Business Unit alone contributing $5.28 billion at a 66% gross margin. Fueled by explosive AI growth, actual second-quarter revenue vastly outpaced initial expectations by skyrocketing to $23.86 billion. Order books reportedly stretch deep into 2027.
