Micron: Don't Get Shaken Out

Hunting Alphas 8.96K Followers Follow Summary The DRAM memory market is expected to remain tighter for longer vs. the NAND market. This benefits Micron's 76% DRAM-focused portfolio. Faster-than-expected HBM market growth, tight market conditions, and Micron's high share in this segment are major growth catalysts. DRAM market tightness is expected through 2027 and beyond, with HBM TAM projected to surpass $100B in 2027, accelerating revenue growth. Valuations are stable with Micron trading near its longer-term median EV/EBITDA multiple despite recent price volatility. Technical analysis shows a healthy long-term uptrend with strong momentum patterns on multi-month charts. JulPo/E+ via Getty Images Performance Assessment Micron ( MU ) has fallen almost 5% since my last bullish update on the stock as it has undergone, in my view (see technical analysis section below), a healthy correction: Elevator Pitch MU stock This article was written by Hunting Alphas 8.96K Followers Follow Hunting Alphas manages a long-only, zero-leverage global equity portfolio through a Self Managed Super Fund. The main portfolio managed is defensive in nature and on a risk-adjusted basis, it has outperformed the market, generating 7.5% annualized alpha, Sortino ratio of 2.0, Information Ratio of 0.67, and low max drawdowns.Hunting Alphas' articles are 5-Minute Stock Pitches that focus on the core stock drivers based on fundamentals, sentiment, valuations, and technical analysis across all types of sectors.Portfolio performance is shared monthly, portfolio holdings disclosed weekly and all the Excel models for the 5-Minute Pitches are shared on the Hunting Alphas website. Note: Hunting Alphas is related to VishValue Research on Seeking Alpha. 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.