Despite a 473% Rally Over the Past Year, This Analyst Says Micron Stock Is Still ‘Dirt Cheap’

Micron Technology’s (MU) artificial intelligence (AI)-fueled rally is showing little sign of slowing down, but the bigger question is whether the stock still has room to run. As one of the world’s three major memory manufacturers, Micron has been a major beneficiary of soaring DRAM (dynamic random-access memory) and NAND flash memory prices, with both markets facing supply constraints as the AI infrastructure build-out accelerates.

The stock has surged a jaw-dropping 473% over the past year, lifting Micron’s market value to around $1.20 trillion and making it one of the most valuable stocks in the U.S. market. While that kind of rally has pushed its valuation significantly higher, Micron’s extraordinary growth means the stock may still not look expensive relative to its earnings. That valuation argument is gaining support from Wall Street.