Key insights
- The post questions Micron's low forward P/E ratio relative to GPU manufacturers, arguing that increasing RAM demand and technological advancements should support higher valuations. It suggests the market is undervaluing Micron's potential, particularly in the consumer market for high-capacity RAM. This could signal a potential upside for Micron and other RAM manufacturers if the author's thesis gains traction.
I don’t get it. What is so different for RAM compared to GPUs to justify such a gap in multiples? I get that the technology is less complex but I don’t see commoditization coming soon. The technology is just starting into a new era, where RAM in the range of >250gb will be a standard. Alone the consumer market is huge for that. The technology for the whole product and manufacturing process needs to be designed, which leaves great potential for margins. This is not the moment where a product will commoditized and becomes cheap it’s exactly the opposite in my opinion. Can someone explain why the market has been so defensive? despite the recent kick off it’s still far behind the valuation of GPU producers.