Srivastava wrote, “While weakness in NAND pricing has been a concern for some time, the fundamentals in DRAM on the pricing front have decelerated as well. Sell side downward estimate revisions are only just beginning, in our view. No changes to our already lower-than-consensus estimates.”

Cyclical stocks ought to trade at lower P/E multiples closer to the peak of the cycle, where we are currently for Micron.