Ticker Symbol: YOUANALYSTJun 30, 2026“MU is a structural AI play trading at a 5.5 forward P/E with a $100B contracted revenue backlog and HBM capacity sold out through 2027, making it deeply undervalued relative to peers.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTWhy
Gross margins came in at 84.9%. That's not just higher than Nvidia's, it's higher than most software companies like Meta Platforms.
The margins and the revenues are not the story here. They're the proof that memory is no longer cyclical, and it's no longer a commodity. Micron announced that they signed 16 strategic agreements with their largest customers, all of which run through 2030. These deals are structured so that customers either buy the chips that they committed to at the price they agreed or they pay for the chips anyway. And to secure their spot in line, those customers paid Micron $18 billion before a single chip was shipped.
These contracts carry a combined minimum of roughly $100 billion in revenue at margins that are much higher than at any point in Micron's history.
Micron's forward PE ratio is just 5.5.
the HBM market specifically will grow more than twice as fast as that at roughly 40% per year through at least 2028. Micron's HBM capacity is already sold out through the end of 2027, and they can still only fill about 60% of what their biggest customers are asking for.
I've been covering a Micron stock for years now. And this is the best setup I've seen for their long-term growth.
Risk
The biggest risk to Micron is that all three major memory suppliers are expanding capacity at the same time. So, if AI spending does slow down, supply could outpace demand.
The structured call
The receipt
Publish-day price $$1,154.29 · the claim is anchored to the moment it was said.