The Motley Fool
01 Nov 2026, 14:30 UTC · 1h ago
Why Micron Stock Looks Cheap After a Record Year
Impact · against what's priced in
The record FY2026 results and the $32 billion in customer commitments are already factored into Micron's valuation. However, the aggressive capex plan ($25 billion for H1 FY2027 alone) reinforces the market's refusal to price in a structural earnings reset, as it increases the likelihood of a cyclical supply glut by 2028.
- MU+0.00
Already priced in
- The price assumes
The $100 billion in contracted revenue through 2030, backed by $22 billion in customer deposits and take-or-pay agreements.
The article notes 26 strategic customer agreements backed by $32 billion in commitments; while the figure is higher than the previously assumed $22 billion, the market already pays for the existence of these stability-providing contracts.
What MU's price assumes · Sep 9
