The AI boom now has a price tag — and Micron just sent the bill: Chart of the Da

Micron's blowout earnings did not just revive the AI trade. They showed how expensive it is becoming.

The memory chipmaker is getting paid first because AI demand is running into a supply bottleneck. The harder question is who pays next: Big Tech, device buyers, cloud customers, AI users, or the broader economy.

That question is why Micron (MU) stock can surge and still look cheap on Wall Street's profit forecasts.

A price-to-earnings ratio, or P/E, compares a stock's price with a company's profits. Lower P/E ratios mean investors are paying less for each dollar of profit.

Micron trades at about 9 times Wall Street's expected profits over the next 12 months, according to Bloomberg and Yahoo Finance data. That is below Nvidia (NVDA), below the S&P 500 (^GSPC), and below Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Microsoft (MSFT), and Meta (META) in the chart above.

What drove Micron's record quarterly revenue guidance?

How are rising AI costs affecting Big Tech companies?

What risks could end the AI earnings boom?

Why does Micron appear cheap despite its stock surge?

The reason is simple. Analysts expect Micron's profits to explode.

Micron guided for roughly $50 billio

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/article/the-ai-boom-now-has-a-price-tag--and-micron-just-sent-the-bill-chart-of-the-day-100000526.html)