Could Micron Stock Double by 2023?
Shares of Micron Technology (NASDAQ: MU) have held up well against the poor performance of the Nasdaq Composite year to date. The memory-chip maker delivered outstanding results in the fiscal first quarter, with strong year-over-year revenue growth and solid performance in earnings.
The stock looks cheap at a price-to-earnings (P/E) ratio of 12.6, but Micron has traded at a below-average valuation throughout its history. That's because the market for storage and memory is very competitive. Micron currently holds third place behind Samsung and SK Hynix in both solid-state drives and dynamic random access memory (DRAM) modules. Competition has historically caused swings in selling prices for these products that can make predicting year-to-year results difficult.
However, these risks may not be as important as they were 10 years ago. Let's look at some comments management made recently that suggest investors might be undervaluing Micron's business in 2022.
Source Fool.com
