Micron: Things Change

Micron Technology, Inc. has seen a massive selloff, with shares now under $850, presenting a completely different risk-reward profile versus a month ago. Recent price declines are attributed to technical factors, including leveraged ETFs and sector rotation, rather than fundamental weakness in MU’s business. Growth outlook remains robust: Q3 revenue surged 73.7% sequentially to $41.46 billion, with gross margins at 84.9% and EPS expected to ramp further. MU’s backlog extends six quarters+, demand is unprecedented, and consensus FY27 EPS of $150 implies a forward multiple of just 5.6x.