Micron: Scorching HBM Competition

Uttam Dey
3.33K Followers

Summary

  • Micron is gaining significant market share in the HBM DRAM segment, capitalizing on Samsung's recent setbacks and strong demand from AI leaders like Nvidia and AMD.
  • Q3 FY25 results showed impressive sequential and year-over-year growth, driven by HBM momentum and well-managed inventory, supporting a bullish outlook.
  • Micron's increased capex guidance and continued market share gains reinforce confidence in its long-term growth and ability to meet 20-25% HBM share targets.
  • Despite recent stock pullback, Micron remains attractively valued with 19-20% upside potential, justifying my Buy rating and $143 price target.
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Investment Thesis

When memory chip supplier Micron Technology, Inc. (NASDAQ:MU) published its Q3 FY25 earnings results late last month, the company won some rave reviews from sell-side analysts, many of them impressed by the sustained momentum in Micron’s

This article was written by

3.33K Followers
Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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