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Micron Is Stronger--and Pricier--Than Ever

The memory supplier is well-positioned, but we continue to view shares as significantly overvalued.

Securities In This Article
Micron Technology Inc
(MU)

On May 21,

As a result of the stronger near-term expectations, we are raising our fair value estimate to $36 per share from $34 for no-moat Micron. However, we continue to view shares as significantly overvalued at current levels, and recommend prospective investors seek a wider margin of safety. Our concerns primarily stem from our view that the recent trend of rational investment is unsustainable, particularly as Chinese vendors look to enter the memory fray and the likes of Samsung potentially increase capacity.

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About the Author

Abhinav Davuluri

Strategist
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Abhinav Davuluri, CFA, is a strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers microprocessors, wafer manufacturing equipment, and other companies in the semiconductor space.

Before joining Morningstar in 2015, Davuluri spent two years as a process engineer for Intel.

Davuluri holds a bachelor’s degree in chemical engineering from the University of Michigan. He also holds the Chartered Financial Analyst® designation.

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