Micron May Be At A Cyclical Peak (Archive)
Micron’s superior HBM3e and iPhone-driven DRAM growth clash with rich valuations and NAND headwinds.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Despite a superior high bandwidth memory product, Micron may still lag its peers in commercial success due to slower product upgrade timelines.
- Micron is poised to benefit from increased DRAM demand from new iPhone models.
- Despite a slight P/B multiple correction, Micron's stock still trades at a higher than usual premium vs competitors, reducing the margin of safety for buys.
- MU vs SPX 500 shows bulls defending a monthly support level. So there are fewer reasons to be bearish as well.
- It may be best to wait for a cyclical turn in the NAND Flash market, especially given Micron's weaker market positioning vs competitors. Micron is not heavily impacted by tariffs.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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