Micron (MU) Soars 10-Fold but Rock-Bottom Valuation Fuels Peak-Earnings Anxiety

Micron Technology shares have surged more than tenfold since late 2024, but a forward price-to-earnings ratio hovering near 10 is stoking concern that the rally may signal an earnings peak rather than a bargain. The stock jumped 80% in May 2026, poised for its best month since 1985, after revenue nearly tripled in the latest quarter — the steepest jump since records began in 1990. AGF Investments CIO John Porter called the low multiple a reverse signal, warning that memory-chip cycles historically make stocks look cheapest when profits crest. UBS analyst Timothy Arcuri countered that artificial-intelligence spending by Microsoft, Amazon, Alphabet and Meta represents a structural shift, raising his Micron target to $1,625 — implying 75% upside — and arguing for a valuation rerating from five times earnings to 15. Yet the average Wall Street target sits at $697, about 22% below current levels, while the 14-day relative-strength index has flashed overbought warnings. Fellow memory play SanDisk trades at a single-digit multiple.