Micron's $200B U.S. Investment Plan Fuels Semiconductor Boom

As of August 27, 2025, Micron Technology, Inc. (MU) is emerging as a compelling value investment with strong upside potential. The company's share price was trading at $117.68 on August 22, with a trailing P/E of 21.20 and a forward P/E of just 8.98.

Micron recently guided its Q4 earnings per share (EPS) to $2.85 ± $0.07, which implies FY2025 forward earnings of $8.11. This translates to a P/E of only 14.9, suggesting the stock is significantly undervalued. Analysts who updated their price targets post-guidance see substantial upside, with JPM at $185, Needham at $150, and Rosenblatt at $200.

Looking further ahead, Micron's FY2026 forward P/E is expected to compress further to 8-9, reflecting an extremely low PEG of 0.13 and an EV/EBITDA of 8.5. The company maintains a strong balance sheet with $15.7 billion in liquidity, supporting both growth initiatives and shareholder returns.

Micron's growth trajectory is further supported by secular tailwinds in High Bandwidth Memory (HBM), which is projected to expand at a 30-35% CAGR through 2030, closely aligned with datacenter demand. The company is already sold out of its 2025 HBM supply and is accelerating fab construction to meet future demand, including a $200 billion U.S. investment plan backed by the federal government, with $150 billion earmarked for manufacturing and $50 billion for R&D.