00:00Luria is a bull with a $2,000 price target still on the table.
00:03But the bears have a case, too.
00:05TrendForce expects the pace of price gains to slow this quarter,
00:08as PC and smartphone makers push back on costs.
00:12And the rise of Chinese memory players is another wildcard.
00:15Wall Street is all over the map.
00:17Luria's $2,000 target implies 90% upside
00:20from the October 29th close of 1,365.
00:23The street's average target sits at $1,520.
00:26Either way, price targets are 12-month estimates.
00:29Not promises.
00:30The undervaluation debate comes down to multiples.
00:33Luria points out that AMD and Intel trade at 40 to 60 times earnings,
00:37while Micron trades at just 7x.
00:39But here's the catch.
00:41In cyclical industries, P-E ratios tend to look cheapest,
00:44right at peak earnings.
00:45So the real question is, is that low multiple A-buying signal?
00:49Or the market pricing in a coming earnings drop?
