Micron: Strong Buy As KOSPI Fear Looks Overdone

Micron (MU) remains a strong buy, with multi-year earnings growth supported by robust AI-driven demand and improving sales, EBITDA, and free cash flow estimates. KOSPI's influence on AI sentiment is overstated; profit-taking and index concentration distort its value as an AI investment gauge, impacting MU’s share price unjustifiably. Estimates for MU have surged—sales up 23.4%, EBITDA 24.5%, and free cash flow 41.4%—with margins expected to remain strong as supply lags demand. MU trades at a steep discount to peers, with 49–134% upside potential based on 7x–9.7x EV/EBITDA, and cyclicality risks appear muted during the current AI buildout.