Micron Technology (MU)

Do you believe the memory cycle will have several years of strong legs? Will the diffusion of AI command a biblical amount of memory? And are these companies meeting this demand that's coming? The market expects generational demand for these companies. But in year 3 and 4, Chinese supply enters the market and maybe there are algorithmic breakthroughs. The market doesn't expect the boom to last beyond two years, but if you believe it will last longer, then these stocks are cheap today. Sell today and wait. These are some of the most leveraged positions in years.

It's his largest position. Pivotal was them ending their consumer business to focus on their high-bandwidth memory business. Their last earnings report was stellar a few weeks ago. Amazing. They're sold out this year and probably their high-bandwidth memory is sold out to 2027. There's support at $850. It will stay at a low PE.

They may be sold out of their product this year, but that doesn't justify a 200%+ move in their shares this year which is already pricing in earnings for the next 2 years.

He sold all his Micron last Monday and made a good profit. He bought it at $350. Do I want to be piggish and keep holding or take a profit? He took profits.

It has had a big run so don't chase it. When stock prices go parabolic price targets go out the window. He compares Micron to SK Hynix (Korean) which IPO's on Friday and could take some of the liquidity out of the memory space. Also Sandisk and Seagate which are also a bit stretched. One company has a price target of $1800 but he has sold 2/3 of his position because he has made so much money. It is one of the kings in computer memory and data storage solutions. You could buy it at $975 and lower.

Chart's gone parabolic. Revenues growing 250-300% this year, almost 100% next year. Benefiting from the memory shortage. Demand seems robust, but he wouldn't buy today. Other players are more interesting at this point, though he owns nothing in the memory space right now.

A bit late in the cycle to put new $$ in, though there's about 2-3 more years in the memory cycle. Prices have really spiked (up 7x). If prices stall, and even if volume continues to ramp up, people will stop being so excited. Still upside, but risky at this point.

Memory is a big area for the agentic AI wave, but there are better ways to participate.

Down 10.57% today. Has great earnings power and a low P/E.

Is a secular, not cyclical, growth story. Because of data centre memory demand, there's a strong shortage in chips, MU locked in excellent pricing for years to come. He regrets not buying it.

20% of S&P gains this year are attributed to Micron. But at some point it stops growing at 294% and must moderate in coming years. It doesn't mean this story ends, though. If Korean's SK Hynix trades in the U.S. in July; the company has a large slice of the market share and will impact Micron.

He sold a third of his holding on Monday and today. His position got too large. Everyday, analysts kept raising the price target. It's not a growth stock. Selling at 10x 2027 earnings is not cheap.