Morgan Stanley Portfolio Manager: 'I Don't Think We're Close' to a Dot-Com Bubble

Micron is positioned as a key example of how AI memory supply chain exposure is being valued. Micron was described as among the cheapest stocks in the S&P 500 on a price-to-earnings basis despite its role in AI memory. The valuation argument points to a trailing P/E of 35, a forward P/E of 8, and a low PEG ratio indicating earnings growth is outpacing the valuation multiple. Comparisons to 1999 semiconductor mania emphasize that then, some stocks traded at triple-digit multiples. Recent results show large earnings beats and strong revenue growth, including high gross margins in cloud memory and revenue that exceeded expectations, with order books extending into 2027.

"“I think about the dot-com bubble, and I don't think we're close to it,” Slimmon said. His evidence sits in plain sight on the semiconductor tape, and the cleanest illustration is Micron. The valuation setup starts with Micron Technology being framed as recently the third cheapest stock in the S&P 500 on price-to-earnings, even while the company sits at the center of the AI memory supply chain."

"Host Jack Hough framed the setup by pointing out that Micron Technology “was recently the third cheapest stock in the S&P 500 if you just look at the price-to-earnings ratio,” despite the company sitting at the center of the AI memory supply chain. Slimmon’s response was that memory stocks “aren't all that expensive,” recalling that during the actual late-1990s mania “some of them traded to triple-digit multiples.”"

"The math backs him up. Micron trades at $751 with a trailing PE of 35 and, more importantly, a forward PE of just 8. A PEG ratio of 0.259 signals that earnings growth is outpacing the multiple by a wide margin. In 1999, semiconductor leaders routinely commanded multiples that would imply Micron should be priced several times higher than it is today."

"Slimmon's broader point is that investors are “being very rational” in how they price AI exposure. The Micron earnings cadence supports that read. In its most recent quarter, reported March 18, 2026, Micron posted EPS of $12.20 against an estimate of $8.79, a 39% beat. The prior quarter, reported December 17, 2025, delivered $4.78 on revenue of $13.64 billion, up 57% year over year, with the Cloud Memory Business Unit alone contributing $5.28 billion at a 66% gross margin."

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