$Micron Technology(MU)$  What a week, right? Plenty of opinions on what comes next. I tend to focus on the numbers. In the end, the stock price follows the economic performance. We know there's a beat and raise coming in June, with raised FY27 guidance as well. A bit more clarity on FY28 would be helpful.

The bottom line is the earnings are great and still improving. Assuming earnings for the year move from $58 currently to $70, we're looking at a 10.7 PE. FY27 sits at $101. That's low. Assuming $120, that's a 6.2x multiple.

Even without any re-rating of the valuation due to the so-called removal of cyclicality (which I find a bit dubious), MU should eventually trade towards 12-13x FY27 earnings. If those claiming the sector is no longer cyclical are correct, pick your preferred PE multiple for a much higher target price.

I'll add that Micron seems to be the only stock in the sector whose PE is capped by that specter of cyclicality. WDC, STX, they all get higher multiples. Logically, MU should join them. But the market can be very irrational in the short term.