Micron Technology (NASDAQ: MU), which makes memory chips for computers and artificial intelligence (AI) servers, just posted a record year. On Sept. 30, it reported fiscal 2026 revenue of $133 billion and adjusted earnings of $75. 52 per share -- a massive jump from $8. 29 a year earlier. Yet the stock closed on Oct. 28 about 13% below its earnings-day close. Investors have seen this movie before. Memory booms have historically ended when new supply flooded the market, and prices fell. As of Oct. 28, the stock trades at a forward price-to-earnings (P/E) multiple of about 5. 5 -- a level that assumes a bust is near. By comparison, the S&P 500 's forward P/E is about 19.
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