Micron Q1 Review: Strong AI Demand Means I’m Still Bullish (Rating Upgrade)

Summary:

  • Micron Technology’s 16% stock drop post-Q2 guidance miss is driven by weaker NAND and mobile orders, not AI-related issues.
  • Despite short-term challenges, Micron’s AI and data center DRAM markets remain robust, with strong demand from Nvidia and potential from AMD.
  • The company’s forward P/E ratio is significantly below the sector median, presenting a unique buying opportunity with a 108% upside potential.
  • Micron’s future growth is anchored in AI-driven memory demand, expected to offset legacy business weaknesses and drive substantial long-term value.

Taiwan Micron Technology Company plant.

BING-JHEN HONG/iStock Editorial via Getty Images

Investment Thesis

Micron Technology (NASDAQ:MU) fell 16% following earnings, with their Q2 2025 revenue guidance of $7.7 billion to $8.1 billion missing estimates and driving the selloff. This was well below


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

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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