Is Micron Stock Too Expensive After Its Huge Run-Up? - The Motley Fool

Following a significant stock surge, investors are now evaluating whether Micron Technology's current valuation is justified. The semiconductor industry, particularly memory markets, exhibits strong c... Read original →

Micron’s valuation surge hinges on AI-driven HBM3/4 demand, yet technological momentum is shifting toward TSMC’s CoWoS and SK Hynix’s Hybrid Bonding. Without HBM4E volume production and inclusion in NVIDIA’s B100 supply chain by 2027, its premium multiples lack support. Geopolitically, U.S. CHIPS Act subsidies come with burdensome disclosure mandates, inflating compliance costs, while Taiwan, China and mainland China accelerate DDR5/LPDDR5x localization, eroding Micron’s consumer pricing power. Samsung’s 15% DRAM capex cut—redirected to CXL memory pooling—signals intensified high-end competition. Over the next 18 months, the memory sector faces a reality check: if AI server shipments disappoint, Micron’s >30x forward P/E could trigger a severe valuation contraction.