Micron Q1 Earnings: Buy This Dip

Summary:

• Micron’s stock dropped 16% despite strong Q1 results due to disappointing Q2 guidance, creating a buying opportunity at less than 30 times earnings.
• The company’s long-term growth is driven by HBM, not NAND, with expectations of significant revenue growth from HBM by through 2030.
• Micron’s competitive positioning in HBM is strong, evidenced by key design wins with Nvidia and robust data center sales growth.
• The market is overreacting to the guidance miss; Micron’s investments in HBM and AI hardware position it well for future growth. This is a dip worth buying.

Micron Technology (NASDAQ:MU) stock cratered after hours despite reporting record Q1 revenue and 400% YoY growth in data center sales. The market was much more focused on the fiscal Q2 guidance that significantly lagged analyst

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