Core Insights - Micron Technology, Inc. has raised its guidance due to the AI-driven data center boom, indicating strong growth potential in the semiconductor market [1][12] - The stock is currently trading 20% below its all-time highs and 30% below its average price target, presenting a potential buying opportunity [2][16] - Micron's earnings outlook is robust, with projected revenue growth of 47% in FY25 and 34% in FY26, reaching $49.4 billion [13] Financial Performance - Micron reported record revenue in fiscal Q3, driven by high DRAM revenue and a more than doubling of data center revenue [12] - The company has consistently beaten EPS estimates, achieving a 10% average beat over the last four quarters [14] - Adjusted earnings are expected to increase by 519% in FY25 and 62% in FY26, from $1.30 in FY24 to $13.05 in FY26 [14] Market Position - Micron is a leader in DRAM and NAND memory chips, essential for smartphones and AI data centers, and has outperformed the tech sector over the past 15 years [7][15] - The company is vertically integrated, designing and manufacturing most of its chips in-house, which differentiates it from fabless competitors [11] - Micron's stock has increased by 167% over the past five years, outperforming the tech sector's 100% growth [15] Valuation Metrics - Micron trades at a 65% discount to the tech sector and is in line with its 15-year median at 9.5X forward earnings [19] - The stock's PEG ratio indicates a 90% discount to tech, suggesting significant value relative to its growth prospects [19] - Despite recent performance, Micron's stock is positioned for potential breakout if investor interest increases [16]