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Micron Stock: It May Get Worse, Not Better (NASDAQ:MU)
Seeking Alpha • • general
Key Points:
- Micron Technology's stock has surged over 500% in the past year, driven by unprecedented AI-related memory demand and record earnings performance.
- The company reported exceptional results, including an 87% gross margin, $54 billion in revenue (up 380% year-over-year), and guidance exceeding consensus for both EPS and revenue.
- Despite strong current performance, the gross margins are considered unsustainably high for a cyclical hardware company, with potential normalization and increased supply likely to cause sharp margin and valuation corrections.
- The analyst views Micron as a near-term hold or risk-reward buy but recommends selling in the intermediate to long term due to unsustainable market euphoria and looming risks.
- The article reflects the author's personal opinion, with no current stock positions in Micron, and emphasizes that past performance is not indicative of future results.
