Micron Technology stock is trading at a price-to-earnings ratio of just 19.8, cheaper than both the S&P 500 and Nasdaq-100 indexes, despite a 1,368% year-over-year surge in earnings to $24.67 per share in its most recent quarter. The company generated a record $41.4 billion in revenue during its fiscal 2026 third quarter, driven by triple-digit growth across all segments, including cloud memory revenue of $13.7 billion. Wall Street analysts forecast earnings will reach $155.56 per share in fiscal 2027, giving the stock a forward P/E of only 5.6. However, the author is not buying the stock, citing concerns that the AI infrastructure boom may be unsustainable as major customers like Uber and Walmart impose limits on AI spending, and that new chip manufacturing capacity could erode Micron's pricing power and lead to shrinking earnings in the future.
