Micron Technology (MU): Evaluating Valuation as AI Infrastructure Drives Memory Demand and Recent Chips Act Funding Spurs Growth

Micron Technology (MU) has been getting extra attention lately as major Wall Street voices point to its growing role in the AI hardware boom. With AI projects fueling demand for advanced memory chips and tight supply across the market, Micron’s position is gaining strength.

See our latest analysis for Micron Technology.

Micron’s standout 98% share price surge over the last three months highlights the momentum building behind the company as AI mega-trends drive demand for its memory chips. Recent news, including its qualification samples for next-generation automotive storage and $6.1 billion in Chips Act funding, has further boosted confidence in the company’s long-term leadership. Overall, Micron’s total shareholder return of 149% over the past year cements its status as a top semiconductor play with significant growth potential heading into 2026.

If you want to see which other technology and AI stocks are picking up steam, there’s no better time to discover See the full list for free.

All this bullish momentum has investors asking a crucial question. With Micron’s fundamentals and analyst optimism on display, is the stock still undervalued or has the surge already priced in years of future growth?

Most Popular Narrative: 19% Overvalued

At $241.95, Micron Technology’s share price sits well above the $203.92 fair value estimate in the most closely followed narrative, indicating a substantial optimism premium. Here is a quote that reveals why some investors are still excited despite the lofty valuation.

Micron’s HBM market share has surged to 21% in Q2 2025 (up from 4% in 2024), challenging SK Hynix’s 62% dominance. Samsung, once a leader, has seen its share drop to 17% due to yield issues and export restrictions. Micron’s advantages include: Technological Leadership: Micron’s 12-high HBM3E stacks and early HBM4 sampling outpace SK Hynix’s 12-high HBM3E and Samsung’s HBM3E.

Read the complete narrative.

Want a glimpse into the thinking that drives this confident price target? The full narrative reveals bold projections about future growth, profitability, and competitive leadership that might surprise even seasoned market watchers.

Result: Fair Value of $203.92 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unexpected shifts in technology demand or renewed geopolitical tensions could quickly challenge the current optimism around Micron's future prospects.

Find out about the key risks to this Micron Technology narrative.

Another View: Market Multiples Paint a Different Picture

Taking a look at market multiples, Micron appears attractively valued. Its price-to-earnings ratio of 31.8x is below both the US semiconductor industry average of 34.4x and the peer average of 91.2x. Interestingly, it is still trading under the fair ratio of 43x, which suggests that, based on current earnings and typical valuations, the stock may have further room to run. Yet, with earnings so sensitive to cycles, is this a genuine bargain or just a reflection of the sector’s inherent risks?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Micron Technology Narrative

If you think the story could go another way, or want to reach your own conclusions, it only takes a few minutes to craft a personal narrative: Do it your way

A great starting point for your Micron Technology research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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