Assessing Micron Technology (MU) Valuation As AI Demand Drives Fully Booked HBM Capacity And Major US Expansion Plans

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Micron Technology (MU) is under valuation scrutiny as its High Bandwidth Memory (HBM) capacity is fully booked due to AI demand, alongside extensive US manufacturing expansion plans. While a popular narrative suggests MU is 15.5% undervalued with a fair value of $507.88, driven by projected revenue growth and higher margins, a Discounted Cash Flow (DCF) model indicates the stock might be overvalued at its current price of $429, with a significantly lower estimated fair value of $188.92. This divergence highlights a split between market sentiment regarding AI opportunities and a more conservative cash flow-based valuation, urging investors to conduct their own analysis.

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