Bruce Murray Micron Technology MU-Q DON'T BUY Aug 15, 2024

Volatile, and that's the price you pay for these growth stocks with higher reward potential. Really likes its business and where earnings come from. Tied to buildout of servers and data centres and AI-driven push. Latest earnings were really strong, with anticipated increased demand and revenue.

He'd be OK to buy, but you have to be comfortable with the volatility. It can go down more than the market on a down day. But if you stick with this one, sees upside from current levels. The bottom is in; ride up to $140-150, and then be cautious.

They delivered a great quarter, but don't get the credit they deserve.

When ASML reported its disappointing memory-chip earnings, he sold this one as a result. This business is so very cyclical; once sold off, takes anywhere from 2-6 quarters to come back.

ASML also talked about how China has built out facilities for memory chips. So, another supply of memory chips that will influence cyclicality in the space.

Its chart shows a rounded bottom. It has had a move up out of the base and then a pullback to test the hammer so it looks ok.

A long shot, at a much cheaper valuation from the group. Held back because memory tends to be a bit volatile on the chip side. Less risk on the trade side. More memory being built into data centres.

It reports Wednesday. It had a nice rally today. He hopes they tell a positive story about all their chips, not just the high bandwidth ones.

MU is a trade, not an investment. They design and make chips. The DRAM is its biggest product; but memory chips like this are highly cyclical with changing demand. He sold MU last summer.

12-month price target of $128.70, clear runway. Cyclical. When out of favour, that can last for quite a while. AI revolution gives quite an appetite for its products.

Their high bandwidth business is on fire. Shares have fallen far and look attractive. Sees little downside.