Micron Trades at 10 Times Earnings as S&P 500's No. 3 Performer Raises Warning
Updated
Updated · Bloomberg · May 28
Micron Trades at 10 Times Earnings as S&P 500's No. 3 Performer Raises Warning
4 articles · Updated · Bloomberg · May 28
Micron has become the S&P 500’s third-best performer this year while still trading at about 10 times estimated earnings, a gap Bloomberg says may signal caution rather than upside.
That multiple is the lowest in the Philadelphia Semiconductor Index, a distinction Micron has held for nearly two years despite the stock’s strong rally.
The memory-chip maker also ranks among the 50 cheapest stocks in the S&P 500, with a valuation only slightly above United Airlines.
Sandisk — the S&P 500’s top performer, up 570% — also makes memory chips and trades at a single-digit multiple, reinforcing the sector’s unusual mix of momentum and low valuations.
Micron's stock is soaring yet historically cheap. Is this an AI supercycle or a classic trap for investors?
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