Micron Technology (MU)

Demand for memory has gone off the charts. Usually extremely cyclical part of the semi chain, but there's so much demand that supply hasn't caught up. A commodity-type company, so he has no interest in it.

As for NVDA, he has more comfort owning TSM. It means he doesn't have to bet on which horse is going to win the race, but owns the racetrack instead. NVDA's valuation is reasonably attractive. On another material pullback, would probably do a deep dive of research.

TSM has by far the largest market share, so it's a much safer play. MU is one of 3 leading players in memory, which is very cyclical. Right now, it's closer to the bottom than the top, so still further upside. However, these stocks stop working way ahead of the cycle peaking.

Not an expensive stock, but risky because of the cycle. So you need to watch it closely.

They have absurd pricing given strong demand.

The memory storage business is historically cyclical. They are on fire now because there's a massive memory shortage. It also happened during Covid when people are stuck at home on computers, then these stocks sold off in 2022. We will be undersupplied for a long time. (PCs and computers will get more expensive.)

It rallied 239% last year, given the voracious demand for chips from data centres. Over 30 years, this has rallied several years in a row, like 2013-4. Wouldn't be surprised if the memory stocks keep running, but take a few profits now.

A core holding. Yes, memory is cyclical, but the AI trade can be longer and stronger in terms of supply and demand. Micron can't meet demand. Eventually, the party will end, but not this year.

You want to see it break the current $252; if so, it will attract new buyers. The chart the past 2 months is an inverted head and shoulders. The chart based in Q1, then broke out after early April's lows. Micron looks good.

Usually cyclical. But demand is very strong from those involved in AI, data centres, and the cloud. Looks as though the run will extend. He has a 12-month price target of $286, still a decent runway. 

Their business, high bandwidth memory, is about data centres, and it's on fire. MU should produce earnings that will surprise for the coming year.

They report Tuesday. They've had a big run, so wait for a pullback. The CEO is prudent and honest.

Likes the CEO, who is prudent and cautious, but the stock has run up 80% this year. Reports next week. 

He has invested in it in the past. AI demand for memory is accelerating so it is well positioned. Can be considered an oligarchy and should continue to do well.

Not a direct competitor to NVDA, but very strong in DRAM and NAND markets. Impressed by mid-quarter update which boosted earnings projections by 10-15% for the quarter. Cheaper than peers in the space, could be re-rated when the market wakes up to that. 

Another way to access and get excited about the AI buildout. Yield is 0.38%.

It has two businesses. One is high-bandwidth memory which goes into data centres, and two is DRAM which is having poor pricing. You need DRAM pricing to rebound, though you can buy a few shares now.

Up 13% in the last 6 months. The stock is inexpensive, but the chart tells him to wait. It had a good run, and now the market says it looks bad.