--- title: "Is Micron Stock Expensive at $725? Here's the Math on Why Shares Are Still Dirt Cheap." type: "News" locale: "en" url: "https://longbridge.com/en/news/286878649.md" description: "Micron Technology's stock has surged to $725, nearly doubling in a month due to its pivotal role in the AI semiconductor market. Despite appearing expensive, forward earnings analysis indicates it remains reasonably valued with a forward P/E of about 8. Analysts expect EPS to grow significantly, suggesting further upside potential for investors willing to navigate volatility." datetime: "2026-05-19T08:30:46.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286878649.md) - [en](https://longbridge.com/en/news/286878649.md) - [zh-HK](https://longbridge.com/zh-HK/news/286878649.md) --- # Is Micron Stock Expensive at $725? Here's the Math on Why Shares Are Still Dirt Cheap. ## Key Points - Micron stock has been on a generational run as growth investors pour into memory chip stocks. - Micron's rising share price makes it appear an expensive stock. - Forward earnings analysis suggests Micron stock remains reasonably valued. - 10 stocks we like better than Micron Technology › As of the closing bell on Friday, May 15, shares of **Micron Technology** (NASDAQ: MU) closed at $725. Over the past month, Micron stock has nearly doubled as investors realize the company's role in the artificial intelligence (AI) semiconductor value chain. While the absolute share price marches higher, smart investors understand that raw price tags reveal little about underlying value. Micron's real story lies in its earnings power and growth trajectory amid an AI memory supercycle. Let's explore why Micron stock remains attractively priced for continued upside. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ Image source: Micron Technology. ## Micron is on an explosive run Over the last month, Micron stock skyrocketed from roughly $448 to a high of $804. While the stock has retreated from its peak, its current price still represents a gain of roughly 58%. Meanwhile, Micron's market capitalization is now within shouting distance of the exclusive trillion-dollar club. The surge was propelled by a couple of factors. First, the company delivered monster results for its fiscal second quarter (ended Feb. 26). Revenue nearly tripled year over year to $23.9 billion, while earnings per share (EPS) expanded from just $1.41 during the second quarter of fiscal 2025 to $12.07 this year. ## Are stock price and valuation the same thing? At more than $700 per share, Micron appears expensive to price-sensitive investors. Absolute share price says virtually nothing about a company's earnings, cash flow, or growth. The meteoric ascent in Micron stock reflects exploding profitability as opposed to speculative froth. ## Forward P/E suggests Micron stock is dirt cheap Wall Street expects Micron's EPS to be around $58 this year and then grow to $100 by fiscal 2027. Nevertheless, Micron trades at a forward price-to-earnings (P/E) multiple of about 8. This is quite modest for a company expected to compound its earnings by almost double over the next two years. Data by YCharts. In a world where memory scarcity has become a major bottleneck, Micron's forward P/E suggests the stock is not expensive, but rather heavily discounted relative to the secular tailwinds fueling accelerated AI infrastructure investments. More room in Micron stock remains for patient investors who are comfortable with volatility as supply chains ramp up with demand. ## Should you buy stock in Micron Technology right now? Before you buy stock in Micron Technology, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $469,293**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,381,332**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 993% — a market-crushing outperformance compared to 207% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of May 19, 2026._ _Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Micron Stock (MU) Surges 154% YTD; Do Analysts See More Upside?](https://longbridge.com/en/news/286651011.md) - [Will Micron (MU) Split Its Stock in 2026?](https://longbridge.com/en/news/286119495.md) - [As South Korea Walks Back Its AI Tax Proposal, the Brief Selloff in MU Stock Is a Non-Event](https://longbridge.com/en/news/286445969.md) - [Micron At A Crossroads Of AI Memory Boom And Policy Risk](https://longbridge.com/en/news/286431519.md) - [What's Going On With Micron Stock Thursday?](https://longbridge.com/en/news/286423825.md)