Micron Q4 Preview: Big Quarter With Blackwell Delays (Rating Downgrade)

Summary:

  • Micron Technology, Inc.’s stock is downgraded to “hold” in my opinion due to Nvidia’s Blackwell chip delays and concerns about cash flow and compressed margins.
  • Despite strong AI demand, Micron’s financial pressures and Nvidia’s delays create uncertainty, making the upcoming earnings report crucial for the future outlook.
  • In the long term, Micron is poised for growth with AI-driven demand for high-performance memory chips, but near-term risks and cyclical industry concerns remain.
  • Investors should watch for management’s qualitative data on Nvidia orders during the earnings call to gauge the impact on Micron’s short-term performance.

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Investment Thesis

Micron Technology, Inc. (NASDAQ:MU) shares have fallen 28.26% since my last write-up in early July, driven mainly by investor concerns around cash flow and compressed margins after their last earnings call.

In their fiscal


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Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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