$Micron Technology(MU)$ Meaningful extra capacity doesn't come online until the back end of 2027/2028. Nvidia, AMD, and others are all forecasting 40% CAGR. When the extra capacity kicks in, it will be swallowed by the extra demand. This high-priced memory cycle will be here for 3 to 4 years. What will happen as the market accepts this is the multiple will expand. Historically 12.6, it will go to 16/17 plus. Earnings with cheaper DRAM/NAND will stay above 100 bucks a year due to extra supply. The stock price will end up above 1700, with no remorse.
$Micron Technology(MU)$ In case someone is hesitant to invest in Micron because the current price is above the average consensus estimate, I'd like to note that 4 out of the 5 latest price targets in May are above $1100. The fifth one was $840. Most of the $500 price targets that are pulling the average down were made many months ago.
$Micron Technology(MU)$ Dell's blowout earnings and upgraded full-year forecast serve as a massive tailwind for Micron. The significant jump in Dell's AI-optimized server revenue points to strong, ongoing demand for data center hardware, which directly drives demand for the high-bandwidth memory (HBM) and DRAM chips Micron supplies. It looks like a favorable situation for MU right now. Honestly, I'm a bit surprised we haven't seen a sharper move after hours yet, but it seems likely to come.
$Micron Technology(MU)$ I think Micron is in the process of being re-rated by the market. The stock should be around $1200 around the time of earnings. Even at $1860 (FY27 $155 EPS x 12x), it still looks cheap given the multiples other semis are trading at. Look at AMD and Intel at 40x! It's surprising to see Intel at that level too. I don't compare it with NVIDIA because they are rightfully on a different level right now. They have the hardware, the software, and the ecosystem. They have a platform, which none of the others really do yet. Stay long MU, ignore the noise, and you should do well.