Micron Technology trades under 10x earnings as BofA highlights AI memory supercycle
Micron Technology is posting some of the most impressive earnings growth in the semiconductor industry, and yet the stock is trading at a valuation that would make a value investor do a double-take. Bank of America Securities analyst Vivek Arya has put a spotlight on the disconnect, noting that Micron’s shares are priced at roughly 8.3x estimated 2026 earnings and just 6x projected 2027 earnings.
BofA raised its price target to $1,500, up from a prior target of $950 that was itself an increase from $500 earlier in the year.
Micron’s Q3 blowout and what drove it
Micron’s fiscal Q3 2026 results, reported on June 24, told a story that the valuation multiples don’t seem to reflect. Revenue came in at approximately $41.46 billion, with adjusted earnings per share hitting around $25.11.
The company also issued Q4 guidance that raised eyebrows: projected revenues between $49 billion and $51 billion.
Record margins in the range of 84-85% powered the beat. AI memory, encompassing high-bandwidth memory (HBM), DRAM, and NAND, now accounts for roughly 35% of customer capital expenditures according to BofA’s analysis.
Micron has doubled its AI DRAM and NAND shipments since 2024. The company has also locked in multi-year supply agreements, which provide revenue visibility that most semiconductor firms would envy.
Shares surged double digits in after-hours trading following the earnings release.
Why Wall Street may be underpricing the AI memory trade
BofA’s argument is that AI has fundamentally changed the demand profile. At 8.3x 2026 earnings, the market is essentially pricing Micron as if the current demand environment is temporary. The progression of their price target, from $500 to $950 to $1,500 within the span of months, reflects growing conviction in that structural thesis.
The crypto angle: tokenized equity and sentiment spillover
Ondo Finance has launched MUON, a tokenized stock product that provides on-chain exposure to Micron equity. Each MUON token is backed 1:1 by MU shares. The product’s market capitalization currently sits in the tens of millions.
The connection between memory chipmakers and crypto runs deeper than tokenized equity products. GPU computing infrastructure, which underpins both AI training and certain crypto mining operations, relies heavily on the memory components Micron produces. Supply tightness in DRAM and HBM can ripple through both industries simultaneously.
Micron’s earnings have also been linked to broader risk sentiment that influences Bitcoin and other crypto assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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