Micron Technology trades at a trailing P/E of 22 and a forward P/E of 8.5, significantly below both the S&P 500’s multiple of just over 30 and most AI-hardware peers. In its most recent quarter, revenue surged by 57% year-on-year, driven by robust demand for advanced memory products used in data centers, AI training and inference workloads. The company’s gross margin expanded to 57%, reflecting strong pricing power amid industry shortages.

Micron reported net income of $5.5 billion in its latest quarter, more than doubling from $2 billion a year earlier, while diluted EPS jumped by 167% over the same period. Free cash flow improved alongside higher operating leverage, with management reinvesting aggressively in next-generation DRAM and NAND capacity. Capital expenditures are projected to rise by mid-teens percentage points in the coming year to support AI-related memory production.

The global memory market grew by approximately 88% in 2024, as AI model training data requirements exceeded 280 terabytes per model and drove acute shortages. Micron’s shares have outperformed major indices and peers, rallying over 200% year-to-date, reflecting investor confidence in sustained memory tightness. With semiconductor capital spending expected to remain elevated and memory content per server climbing, the company is positioned to capture the bulk of incremental demand through 2026.