‘A Monster Run,’ Says Top Investor About Micron Stock

Micron Technology (NASDAQ:MU) has found itself in enviable territory during the better part of the past year. The maker of high-bandwidth memory products has seen appetite for its offerings skyrocket.

In many ways, it’s a simple case of supply and demand, as Micron is one of only three firms (Samsung and SK Hynix) capable of manufacturing the memory products that are helping drive the AI craze.

The company has seen its share price increase by over 435% during the past twelve months. Its latest earnings report – in which its revenue of $23.9 billion was up 196% year-over-year – provided further evidence that the company is delivering the goods.

And yet, MU’s share price has been sinking since the earnings report. And it’s not just a sell-the-news, take-the-profits dynamic at play either. The memory business is notoriously cyclical, and recent news that Alphabet had dramatically decreased memory needs via its TurboQuant AI memory compression algorithm didn’t help matters either.

Despite its “monster run” (and the recent TurboQuant developments), top investor Adam Spatacco doesn’t think the time has come to throw in the towel.

“While Micron faces new risks from big tech, the stock could still be an attractive opportunity for the right investor,” emphasizes the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.

Spatacco points out that Micron constitutes a very specific role in the AI chip ecosystem. That’s catapulted its high-bandwidth memory chips from a “nice to have” bonus to a “must-have” necessity, he explains.

And while the cyclical risks remain, Spatacco isn’t too worried that the bottom is about to fall out, either. He argues that AI demand is “structurally different” from previous growth cycles, as it rests on dramatically higher volumes of data.

“So long as big tech continues committing hundreds of billions to AI infrastructure annually, the memory supercycle should remain in an elevated uptrend,” adds Spatacco.

While there could be some volatility up ahead, especially due to the TurboQuant revelations, Spatacco isn’t shying away from MU.

“I still view Micron as a high-conviction opportunity amid ongoing AI infrastructure build-outs,” concludes Spatacco. (To watch Adam Spatacco’s track record, click here)

Wall Street also has strong convictions about MU. With 26 Buys and 3 Holds, MU coasts to a Strong Buy consensus rating. Its 12-month average price target of $533.53 points to gains of roughly 45%. (See MU stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.