Micron Technology (MU)

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. 

There's been hyper-demand for this and related stocks. At some prices, these high share prices have to come down, take a breather, and that's fine. Long term, there's plenty of life here.

From June 3-5 pulled back 20%. It trades at 46x PE and has 196% revenue growth and their inventory is sold out for the next 18 months. 

Be cautious. Could make sense if there's a substantial pullback. Beta is very high, 2x the S&P 500 -- if that corrects, this stock will move more quickly on the downside. Trades at 9.4x forward PE, growth rate is phenomenal. Very strong earnings growth.

Based on previous cycles where momentum can turn on a dime, Micron is especially vulnerable to this. Chips are acting like a commodity. That said, he doesn't see their share price or earning declining. A caveat is adding capacity, which has always killed the chips cycle. The difference is that now it takes longer given supply chain issues to add this capacity. Maybe one or two years out, MU will turn, doesn't know.