Micron Technology (MU)

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.

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

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.

The memory market is much more cyclical than other sectors of tech. MU is expected to see massive growth in 2025 (based on EPS consensus) but recent downgrades have caused investors to question this growth. The balance sheet and cash flow remain fine, and generally we like the company. On 2024 earnings it is quite expensive, but VERY cheap IF it can actually hit the earnings estimates. 2025 EPS is estimated at $9.48, vs 2024E $1.23. We think it can be bought today if one has some patience and fortitude. 
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Their bread and butter are memory chips to feed all these new data centres needed for AI. MU's business is accelerating hard the past 2 quarters and not just in AI. Last July they reported a monster top and bottom line beat and raised guidance. He doesn't see their next quarter being any worse. Trades at a cheap under 7x 2025 fiscal earnings estimates. 

12-month price target of $152, long runway. King of DRAM, which is cyclical and very temperamental to pricing. Hold, and add around $80-85. Shouldn't go under $75; if it does, get out.

MU focuses mainly on memory chips, massive demand. Stock's sold off. Dell has actually started to build AI right into the computer, creating a bit of excitement.

Instead, he'd recommend AVGO. Or, if you really want to take some risk, QCOM.

Very volatile, reflecting the semis industry. Every 2-3 years, there's a big dip which you buy, then the shares run. MU is a good company, but he prefers something like ADI. It's a good trade stock, though.

12-month target of $162.50. Buy a third here at $112, another around $108, and then $102. Both manufactures and designs. Was at $150, now at $112; could be a theme of today's show that a selloff provides great opportunities.

Great opportunity to pick up 4 pillars. MU on the manufacturing, TSM for the foundry, LRCX or KLAC or ASML as the equipment suppliers, NVDA is a gift down here as a designer. And (he can't believe he's going to say this) even INTC; come 2025, it will be competitive with NVDA.

Growing for a reason, which is that exponentially increasing revenue because of demand for its product. Sweet spot for servers and GPUs. Technically, sat around 50-day MA for a while, can move aggressively after a breakout. Could see it continue to do well through July. Yield is 0.3%.

In answer to the question comparing NVIDIA and Micron, he can't tell which one will outperform so you could buy both on a pullback. He considers them more of a trading type of stock. Be careful though - they have high momentum have the potential to be very volatile