Micron: Headed North As DRAM Dynamics Improve

Summary:

  • We continue to be bullish on Micron for long-term investors.
  • We expect DRAM industry demand-supply dynamics to come into balance towards the end of 2H23, improving Micron’s financial performance.
  • Still, we expect continued soft demand in NAND markets due to the weaker end-market demand for smartphones and PCs.
  • Micron stock remains relatively cheap, trading at 3.7x EV/C2023 sales versus the peer group average of 5.3%.
  • We continue to see favorable entry points for long-term investors at current levels, as we expect the stock to outperform further towards 2024.

Micron Technology Inc. One of american leader in semiconductor devices, dynamic random-access memory, flash memory, USB flash drives, solid-state drives.

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We remain buy-rated on Micron (NASDAQ:MU), seeing favorable entry points for long-term investors at current levels. We expect DRAM industry demand-supply dynamics to come into balance towards the second half of the year. We see MU stock rallying towards FY2024 – the

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.


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