Micron Rebounds Above $900 as Forward P/E of 5 Underscores AI-Driven Growth
Updated
Updated · The Motley Fool · Aug 6
Micron Rebounds Above $900 as Forward P/E of 5 Underscores AI-Driven Growth
3 articles · Updated · The Motley Fool · Aug 6
Summary
Micron has climbed back above $900 after an AI-stock correction, with the report arguing the shares still look cheap below $1,000.
Fiscal 2026 third-quarter results underpin that case: revenue quadrupled year over year, and Micron projected more than 20% sequential revenue growth for the fourth quarter.
A forward P/E of 5 is the key valuation hook, leaving Micron cheaper than many bank stocks and below the valuation of every Magnificent Seven company despite faster growth.
Multi-year customer contracts and rising big-tech spending on AI memory support the outlook, with Amazon lifting its 2026 capex forecast to $220 billion and citing higher memory costs.
The broader thesis is that memory has become core AI infrastructure, making this cycle potentially more durable than past boom-and-bust periods in chips.