Analysis: Micron may break the semiconductor traditional pricing framework and enter a new logic of "the higher the profit, the higher the valuation."

Deep TechFlow message — On June 25, Deep Value Memetics posted an analysis indicating that Micron Technology may currently be showing an atypical semiconductor valuation structure: as earnings per share (EPS) moves upward, the valuation multiple the market assigns is expanding in parallel.

At present, Micron is around 22x P/E, below the S&P 500 (SPY) average of about 22x, and also well below the semiconductor index (SOX) at roughly 26x. In past cycles, analysts typically granted lower valuation multiples during the phase when earnings peaked. However, as the “de-risking” process advances, this “show-me” narrative is shifting, and the market may be entering a new stage of “EPS improvement → valuation multiple expansion,” resulting in an exponential valuation re-rating. If EPS reaches $200 and a 20x valuation multiple is applied, Micron’s stock price could point to around $4,000.