X discussionMicron Technology still trades near 7x forward earnings after a midweek flush below $1,000, while Dell sits near 18x with thinner margins. Traders are fighting over whether that discount correctly prices a memory-cycle peak or whether AI undersupply makes the gap a mispricing. Heavy call selling hit the tape into the weakness as bulls point to sold-out HBM and multi-year prepaid supply deals ahead of late-September Q4 results.
BullMicron is the cheapest name in the AI buildout while memory remains the binding bottleneck. The stock sits near 7x forward versus 20-75x for other AI names, even as Micron locks multi-year prepaid supply contracts and guides roughly $50B of quarterly revenue with ~86% gross margins.
BearMemory is still a classic cycle and the chart has not finished flushing longs. A widely shared technical pattern calls for another ~21% drop to complete a lower-trendline bottom, and DeepSeek's V4.1 Flash cutting KV-cache HBM needs to one-quarter of the prior generation feeds the demand-destruction scare.
Posts
Bull evidence
@amitisinvestingAsks why Dell trades at 18x forward while Micron sits at 7x despite 3x larger margins and tighter memory supply
@hamidsSays pricing AI boom at 20-75x for peers but 7x for Micron is insane given 5-year prepaid memory contracts and 10:1 demand/supply gap
@Tickertalk1Targets MU above $2500 by Dec 2027 on memory demand plus a CHIPS Act buyback window after Dec 9 2026
Bear evidence
@MartinShkreliFlags DeepSeek V4.1 Flash using 1/4 the HBM for KV cache as bearish for MU and SNDK
@CoinvoTradingSays a century-old pattern still needs one more lower-trendline touch, implying another ~21% decline before the bottom
@CheddarFlowFlags millions of dollars in MU calls sold to open as unusual bearish options flow