Micron: Profitability Is Poised For A Spectacular Recovery

Summary:

  • Micron Technology stock declined by 4.4% after reporting its fiscal fourth quarter results, but this shouldn’t have surprised investors.
  • MU has outperformed its semi-peers since my previous update. Hence, some profit-taking is justified, as investors reacted to its less optimistic gross margin guidance.
  • Investors worried about the reported numbers and near-term headwinds could miss out on a significant profitability growth inflection as Micron emerges from the market malaise.
  • I urge MU holders to focus on what’s ahead over the next two fiscal years, as the company is well-poised to ride the ongoing recovery.
  • High-conviction investors should capitalize on the recent pullback and buy while MU is still early in its recovery phase.

Micron San Jose Office

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Micron Technology, Inc. (NASDAQ:MU) attracted negative headlines yesterday as the company recently reported its fiscal fourth quarter or FQ4 earnings release. Accordingly, MU led the decliners in my semiconductor coverage, while most semi-stocks were in the green, as the tech


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, NVDA 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.

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