Micron Technology is 'absolutely cheap' on a P/E basis compared to NVIDIA - Fox Business

In the context of continued growth in the semiconductor industry, the valuation comparison between Micron Technology and NVIDIA has drawn market attention. According to Fox Business, Ivana Delevska, f... Read original →

Micron’s current valuation gap stems not from fundamentals but from market overpricing AI narratives versus undervaluing memory cyclicality. Technically, its HBM3E ramp-up could ease AI server bottlenecks, pressuring SK Hynix and Samsung’s DRAM pricing power. Geopolitically, U.S. export controls incentivize Micron to diversify manufacturing across Taiwan, China; Japan; and the U.S., raising near-term capex but enhancing supply chain resilience. In response, Samsung may accelerate divestitures to refocus on mature nodes, while NVIDIA could lock in Micron capacity via proprietary memory interfaces to fortify its AI ecosystem. Over the next 12–24 months, as AI models scale beyond trillion-parameter thresholds, HBM demand will likely grow at a 40%+ CAGR. Micron’s optimized cost structure and customer diversification position it to transition from a cyclical play to a growth-oriented infrastructure supplier—justifying a meaningful P/E re-rating.