Are Sunny Days Ahead for Micron as DRAM Prices Rise?

Shares of Micron (NASDAQ: MU) have rallied roughly 60% this year as surging demand for memory chips caused prices to soar. As the world's third-largest DRAM maker and fourth largest NAND maker, Micron is widely regarded as the best "pure play" on memory chips.

Investors might be skeptical about Micron's continued growth, since the stock is flirting with a multiyear high in a frothy market. However, Micron trades at just six times forward earnings estimates -- a very low valuation for a company expected to grow its non-GAAP earnings from $0.06 in 2016 to $4.72 this year.

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Source: Fool.com