Micron Stock Is Trading at 42x Trailing Earnings. Analysts Say That's Still Cheap.

Micron Technology is at the center of the AI-driven memory rally, with MU stock reaching a May 27 high of $956.16 and briefly lifting the firm's market cap above $1 trillion. Bank of America Securities' Vivek Arya argues the sector is extended but not expensive as AI demand outpaces supply four-to-five times. Micron, the Boise, Idaho-based producer of DRAM, NAND, and NOR memory, commands a market cap around $1.04 trillion. Analysts expect high-bandwidth memory prices to stay elevated amid tight supply. Despite the rally, some investors remain cautious about further upside.