The memory market has historically been a commoditized industry that has experienced major boom-and-bust cycles. Demand from new technologies will often cause prices to surge, only for the market to eventually get hit with new supply and prices to crash. That is one of the main reasons why Micron Technology's (NASDAQ: MU) stock trades at a forward P/E of just over 5 times fiscal 2027 (ending August) analyst estimates despite soaring growth, as investors expect the current supercycle to eventually end. Micron is one of the big three DRAM (dynamic random access memory) makers, along with its Korean counterparts SK Hynix (NASDAQ: SKHY) and Samsung. It currently has around a 24% market share in the DRAM market and derived 73% of its revenue from this type of memory last quarter (its fiscal Q4). It also has a 15% share in the NAND (flash) market, which made up 26% of its sales last quarter. With demand for memory far outstripping supply, Micron has seen its revenue surge and gross margins balloon largely on the back of higher DRAM and NAND prices.
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