Micron Has Significant Upside In The Midcycle

Summary:

  • Micron is well-positioned for the next wave of data center buildouts, driven by strong AI training and inferencing demand that outstrips GPU capacity.
  • Management is expanding capacity through new foundries in Idaho & New York and is converting an LCD facility in Taiwan to a DRAM production test facility.
  • HBM capacity is sold out for CY24 and CY25, indicating strong demand, while DRAM and NAND pricing are expected to improve due to balanced supply and demand.
Robotic arm giving a CPU to another robot

luza studios

Micron (NASDAQ:MU) is improving its position for the next wave of data center buildouts as the firm increases capacity and ramps up production of their HBM bits. Though the firm may be limited on capacity in terms of volume production


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, ORCL, AMD, DELL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *