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Micron's Selloff Is A Once-In-A-Decade Opportunity
Seeking Alpha • • business
Key Points:
- Micron Technology's stock has dropped about 10% today, contributing to a 41% decline over the past four months, presenting a significant buying opportunity according to the analyst.
- The company is well-positioned for growth driven by AI-related demand and hyperscaler capital expenditures, which are expected to sustain memory shortages through at least 2028.
- Micron's financial performance is strong, with quarterly revenue up 379% year-over-year and operating margins between 76% and 88%, outperforming its peers.
- The stock trades at a forward price-to-earnings ratio of 4.5x, the lowest among competitors, with Wall Street analysts projecting a potential 117% upside.
- The author, a long-term bullish investor in Micron, views the recent valuation drop as a rare opportunity for triple-digit returns and continues to hold a beneficial long position in the stock.
