What changed
$MU — BUY 📊 | 6 MONTHS THESIS
🧭 Conviction: MED
🎯 FQ3 FY2026 (ends May) | reported Jun 24 | Rev $23.9B | EPS $24.89 vs $20.98 🟢 | Margin 80.4%
💡 Consensus expects a typical cyclical peak and rapid reversion to low P/E multiples, but structural shifts (AI training/inference, DDR5/HBM proliferation, disciplined industry capex) will sustain elevated earnings and higher terminal multiples, delivering a repricing from 11.4x trailing to 18.7x forward.
📉 Reward/risk: 2.3:1
🏢 Business Quality: 9/10
📊 Valuation: cheap on trailing P/E of 11.4x, far below sector median 18.7x; DCF with 6.8% FCF growth implies fair value; EV/EBITDA also supports upside;...
🔮 Catalyst: Next quarterly earnings release
💰 Entry: $1132.33, stop $401.74, target $2782.41
⚖️ Buy: MU offers asymmetric upside as the market underappreciates structural memory demand, with 2.3:1 reward/risk from a deeply undervalued base.