PE ratio of only 10 times vs EPS growth of 327%: Why is Micron (MU. US) still attractive after its big rise?

Despite the significant increase in the stock price of Micron Technology, Inc. (MU.US) over the past year, Seeking Alpha's quantitative research director Steve Cress recently stated that this memory chip manufacturer still holds attraction, with a clear mismatch between its current valuation and growth prospects. Cress pointed out in a podcast program that the biggest investment highlight of Micron Technology, Inc. is its combination of "undervaluation and high growth." He mentioned that Micron currently has a price-earnings ratio (PE) of only about 9.9 times, while the median valuation of the entire semiconductor industry is around 32 times. At the same time, the company's future earnings per share (EPS) growth is expected to be as high as 327%, showing that its profit growth rate is much higher than the industry average. Driven by the surge in demand for storage chips due to AI, Micron's stock price has remained strong recently. Data shows that the company's stock price has risen by approximately 720% over the past 12 months, with an increase of about 80% in the past month. Regarding market concerns about "cyclicality," Cress stated that quantitative models focus more on the company's fundamental data itself rather than just market sentiment. He said, "If the growth data, profitability, and valuation logic are all valid, then even in a cyclical industry, the company may still be a strong buy." Cress believes that at the current price-earnings ratio of around 10 times, Micron's corresponding earnings growth expectations are still very strong, thus "this stock still has significant upside potential." With the continuous growth in demand for AI servers, high-performance computing, and data centers, the market outlook for HBM (high bandwidth memory) and the DRAM market has significantly improved, leading to a reevaluation of the long-term growth potential of the memory chip industry. Recently, companies in the storage industry chain such as Western Digital Corporation (WDC.US), Seagate Technology Holdings PLC (STX.US), and SanDisk (SNDK.US) have also seen significant increases in their stock prices, reflecting that the AI trend is continuously driving strength in the entire storage and data infrastructure sector.