Micron: Deeply Mispriced

The Asian Investor
29.27K Followers

Summary

  • Micron delivered strong Q3 results, driven by surging AI demand and rapid ramp-up of high-bandwidth memory (HBM3E) shipments.
  • Micron crushed estimates for the third fiscal quarter amid strong fundamentals in the Data Center industry.
  • AI-led growth fueled record DRAM revenue and a massive 359% year-over-year increase in adjusted free cash flow, supporting a bullish outlook.
  • Micron's valuation remains attractive versus AI rivals, with earnings and free cash flow potential still widely undervalued by the market.
  • Despite sector cyclicality risks, I see continued upside as Micron capitalizes on AI spending and FCF margin expansion with new memory solutions (HBM4).

AI Chips at the Core of Modern Devices

mikkelwilliam

Micron (NASDAQ:MU) reported strong results for its third fiscal quarter that exceeded top and bottom line Wall Street estimates amid a continual spending boom in the artificial intelligence market that greatly benefits memory makers right now. With AI-related

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29.27K Followers
I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.

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