Why Micron Technologies Shows Value At these Elevated Levels

A stock that has rebounded very nicely from pandemic-related lows in March, Micron Technology, Inc. (NASDAQ:MU) has seen its share price increase almost 250% from these lows. This company is in the business of providing memory and storage used in everything from data centres to cloud computing companies. Therefore, this is a company with some very strong secular tailwinds supporting continued long-term growth in the segments it operates in.

As a core supplier to such companies, Micron has continued to build its moat in this regard, grabbing market share where possible. I see this growing market as one Micron could continue to grow its market share long-term, and see the company’s technologies as critical infrastructure for the data-oriented world we live in today and will continue to live in for the foreseeable future.

The company’s stock trades at only 29-times earnings, which is dirt cheap in my opinion, particularly when one looks at other technology companies that are trading at higher price to sales multiples. This is a much safer way to play the cloud computing and data storage space over the long-term, particularly if one believes Micron will continue to grow its market share long-term. Competition will always be an issue, however, I like the long-term prospects of Micron right now. The company is trading at just higher than 10-times operating cash flow, and has lots of room to continue to pump earnings and cash flow into its core operations.

While this company’s rapid stock rise may be a cause for pause among some investors, I think the fundamentals look pretty good on this technology growth play.

Invest wisely, my friends.