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Micron’s Sell-Off Makes No Sense

April 23, 2025
Mykola Pokhodzhay

Summary

  • Micron’s HBM revenue surged 50% sequentially in Q2 FY25, reaching over $1B and driving 57% of CNBU sales.
  • Estimated $5–7B in China-exposed revenue faces 25% tariffs, potentially reducing EPS by $0.44–$0.62 per share.
  • Despite consensus FY25 EPS of $6.97, shares dropped 20%—more than double the worst-case 9% earnings hit.
  • Micron trades at ~9.8x forward P/E vs. 15x historical median, offering re-rating potential amid AI infrastructure tailwinds.

In the burgeoning AI arms race where compute acceleration has long held the spotlight, Micron Technology (NASDAQ:MU) (NEOE:MU:CA) is quietly positioning itself in the background as a mission-critical facilitator. Investors still perceiving MU.

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