Micron: Things Change (NASDAQ:MU)

Micron Technology has experienced a significant selloff with shares now trading under $850, down from over $1,200 after fiscal Q3 earnings, creating a markedly different risk-reward profile. The decline is attributed to technical factors including leveraged ETF dynamics and sector rotation rather than fundamental weakness, as Q3 revenue surged 73.7% sequentially to $41.46 billion with gross margins at 84.9%.

Why it matters: MU's backlog extends six quarters or more with unprecedented demand, and consensus FY27 EPS of $150 implies a forward P/E of just 5.6x, suggesting the stock may be undervalued.