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Micron: Memory Boom Still Has Legs

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  • Micron Technology is positioned for multi-year growth, driven by strategic customer agreements and surging AI-related memory demand.
  • MU's SCAs now cover 35% of revenues through 2030, with $150 billion in RPOs and potential revenues up to $433 billion, if pricing holds.
  • Physical AI and autonomous vehicles are set to drive the next memory demand cycle, with humanoid robots requiring up to 20x the memory of premium smartphones.
  • The stock trades at just 6x FY27 EPS estimates and is poised for aggressive buybacks; MU offers upside as elongated cycles and constrained supply support elevated earnings.
Micron Technology, Inc. (MU) remains a stock difficult to hold long term due to the normal cycle products in the memory space. Micron is silly cheap based on projected earnings, but the logical investor has to fear a reversion to the mean with memory prices collapsing when the AI cycle ends. My investment thesis remains Bullish on the stock after holding the $1,050 level following FQ4 earnings.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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