Micron: HBM Momentum Isn't Enough To Justify This Price
Summary
- Micron Technology, Inc.'s Q3 FY2025 results beat expectations, with revenue up 36.6% YoY and margins showing recovery, driven by a favorable DRAM/data center mix.
- NAND revenue grew faster than DRAM QoQ, but pricing remains weak; management is cautious about capacity due to a challenging market environment.
- Tariff risks appear more contained than previously feared, and AI-driven demand is fueling optimism for continued growth into 2026, especially in HBM.
- Despite strong momentum, I remain cautious due to the stretched price-to-book valuation and will wait for a better entry point before upgrading my MU rating.
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