Analysis: Micron May Be Entering a New Valuation Structure Logic of "Higher Earnings, Higher Valuations"

Odaily reports that Deep Value Memetics published an analysis on X platform, pointing out that Micron Technology is currently exhibiting a non-traditional semiconductor valuation structure: while earnings per share (EPS) are trending upward, the valuation multiples assigned by the market are expanding simultaneously.

Currently, Micron has a P/E ratio of around 22x, below the S&P 500 (SPY) average of about 22x, and significantly below the semiconductor index (SOX) of approximately 26x. In previous cycles, analysts typically assigned lower valuation multiples during the peak earnings phase. However, as the "de-risking" process advances, this "show-me" narrative is shifting. The market may be entering a new phase of "rising EPS → expanding valuation multiples," leading to an exponential valuation re-rating. If EPS reaches $200 and is assigned a 20x valuation, Micron's stock price could target approximately $4,000.