Micron added as new short idea: Hedgeye
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Micron Technology (NASDAQ:MU) was added as a new short idea by the investment research firm Hedgeye on Monday.
Micron was down 2% by afternoon trading.
“We don’t think Micron left itself much upside surprises for FY 2025 (consensus at 52% growth), especially with a seasonally challenging FQ2 2025 (ends in February 2025),” said Hedgeye analyst Felix Wang. “Management is trying to dampen expectations on FQ2 2025 guidance.”
Heading into 2025, Hedgeye believes oversupply of high bandwidth memory is a real concern.
“DRAM capacity could hit a new record next year,” Wang noted. “It’s probably a matter of when, not if, Samsung’s HBM3e (OTCPK:SSNLF) challenges will be resolved and receive verification. Samsung has plenty of issues and needs to catch up desperately. This will add to supply concerns next year.”
NAND flash memory has also revealed no indications of a recovery in 2025 as well.
“Despite MU’s better tone/guidance on its non-AI segments, i.e. mobile/PC, we’re skeptical on its recovery heading into 2025,” Wang added. “Inventory issues remain on poor demand from certain consumer end markets.”
Micron shares have shown extreme volatility this year. They struck an all-time high of $153 on June 18, only to collapse by more than 40% to $86 by early August.