Svmuu News: Deep Value Memetics published an analysis on X, noting that Micron (Micron) may currently be exhibiting an atypical semiconductor valuation structure: while earnings per share (EPS) are rising, the market’s valuation multiples are expanding in tandem.
Currently, Micron trades at a PE ratio of approximately 22x, which is below the S&P 500’s (SPY) average of about 22x and significantly lower than the Semiconductor Index’s (SOX) level of approximately 26x. In past cycles, analysts typically assigned lower valuation multiples during the peak earnings phase.However, as the “de-risking” process progresses, this “show-me” narrative is shifting, and the market may be entering a new phase of “EPS growth → valuation multiple expansion,” leading to an exponential revaluation.If EPS reaches $200 and is valued at 20 times, Micron’s stock price could rise to around $4,000.