Micron: High Risk, High Reward

Micron Technology remains attractively valued post-dip, trading at 5x forward EPS, with robust AI-driven memory demand underpinning the bullish thesis.

The company is in a far better position securing $100B+ in long-term SCA contracts and $22B in prepayments, with up to 50% of revenue under take-or-pay agreements at fixed prices.

Despite strong near-term prospects, MU faces structural boom-bust risk, with gross margins historically swinging from 50% peaks versus 85% now to negative territory in downturns.

Competitive dynamics with Samsung and SK hynix, and potential for future oversupply warrant close monitoring even as relentless AI demand supports upside into FY27.

Micron Technology, Inc. ( MU ) is a peculiar investment with the stock soaring over 1,000% and still appearing cheap based on out-year earnings estimates.

The recent AI wreck offers an opportunity after the non-stop rally