Am I the only one who thinks the market is pricing these two completely differently for no good reason?
Micron (MU): \~53.5 P/E
Sandisk (SNDK): \~76 P/E
Both are exposed to the same long-term secular trend: exploding demand for memory driven by AI, data centers, enterprise storage, edge computing and consumer devices.
SNDK keeps running while MU has been relatively stagnant in comparison.
If investors are willing to pay 76x earnings for one memory company, why shouldn’t the market eventually be willing to pay something similar, or even higher, for MU if execution stays strong?
My personal view is that within the next year the market could become much more optimistic toward the entire memory sector. I wouldn’t be surprised if both companies eventually traded closer to a 100PE before August.
Am I missing something fundamental here, or is this simply a case where the market hasn’t repriced MU yet while SNDK has already received its momentum premium?
Also add that institution and retail will sell non profitable companies with stocks in downfall, like KO TSMC JNJ VZ PFE CMCSA PG and so on to buy more memory stocks that actually earn profits/revenue.
Curious to hear both bullish and more bullish arguments.