Micron Q1 Preview: Mixed Signals Going Into Earnings (Archive)
Micron’s DRAM strength contrasts with a weakening NAND outlook and stretched valuations.
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
- Growth and market share gains are expected in Micron's DRAM business, driven by both price and volume tailwinds.
- Although data suggests that Sep 2024 has been good for Micron's NAND business, the outlook is more challenging with pricing cuts and a slowdown in order demand.
- MU valuations are at a premium relative to both its peers and the broader historical P/B valuation band, reducing the attractiveness of buys.
- There are no bullish signs on the MU vs SPX charts as the ratio prices are stuck in a range.
- Anti-China chip policies inhibit Micron via limitations on its sale of high-bandwidth memory (HBM) chips. This risk may also become more meaningful under the incoming Trump administration.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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