Micron's 817% Rally Surpasses Nvidia's Five-Year Gain as DRAM Supply Constraints Support Valuation
Micron Technology has posted an 817% one-year return, exceeding Nvidia's five-year performance. Tight DRAM supply discipline and a 20% annual capacity expansion ceiling, combined with fixed-cost manufacturing leverage, underpin analyst arguments that current valuations can be sustained [1].
Micron Technology has posted an 817% one-year return, a rally that now exceeds Nvidia's cumulative performance over five years [1]. The trajectory has prompted scrutiny of the chipmaker's valuation, particularly whether DRAM market structure can sustain further multiple expansion.
The memory chip industry remains constrained by oligopolistic supply discipline and physical manufacturing limits, which together cap global DRAM production expansion at approximately 20% annually for the medium term [1]. That ceiling, combined with fixed-cost operating leverage intrinsic to fabrication plants, has delivered earnings power that analysts argue can absorb current valuations without reverting to prior cyclical troughs.
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