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Micron’s HBM Edge Drives Bull Case as Stock Soars and Valuation Stays Low

A new analysis argues HBM scarcity is giving Micron pricing power.

Overview

  • Only three companies can produce high-bandwidth memory at scale, the article notes, with demand projected to grow roughly tenfold over the next decade.
  • Micron’s latest quarter delivered $13.6 billion in revenue versus $8.7 billion a year earlier, with operating cash flow rising to $8.4 billion from $3.2 billion.
  • Shares have climbed nearly 250% over the past 12 months, yet the forward P/E as of Jan. 9 sits just under 11, well below the tech sector average cited at 26.
  • The company supplies AI leaders such as Nvidia and AMD, positioning its HBM products for continued orders, according to the analysis.
  • The piece recommends investors consider buying the stock before 2027 to capitalize on constrained HBM supply and Micron’s competitive position.