Micron (NASDAQ:MU) might be one of the market’s biggest recent winners, but that doesn’t mean the current investment case is any less compelling.
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So believes a top investor who goes by the name of Cash Flow Venue (CFV). The 5-star investor thinks that despite the gains (up 704% over the past year), at a 12.5x forward P/E ratio, the stock still trades at a “very low multiple.”
But more than that, CFV points to 3 game-changing insights the company shared at this week’s Global TMT conference as reasons enough to keep a bullish stance.
For one, Micron appears headed for another record-breaking quarter, which is not surprising given how critical memory is to the ongoing AI boom. As a leading memory supplier, the company is benefiting from strong supply-demand dynamics. Management said its outlook has improved since the last earnings call, with fiscal Q3 expected to deliver another major free cash flow record. The company also highlighted its strongest-ever balance sheet, supported by credit rating upgrades from all 3 major agencies.
Secondly, it’s well known that Micron’s HBM supply for 2026 is already fully booked under long-term agreements, and management has indicated that demand continues to outstrip supply. But the company also said supply constraints across HBM, DRAM, and NAND are likely to persist beyond 2026, which suggests customers may continue locking in capacity well ahead of time. Based on that dynamic, CFV thinks there is reason to believe Micron could secure its 2027 HBM capacity before 2026 ends.
Management did not directly discuss 2027 bookings, but it emphasized Micron’s history of locking in supply commitments early. Management noted that the company effectively finalized its 2026 HBM positioning around late 2025, including both HBM3E and HBM4 products. That track record, says CFV, combined with ongoing industry tightness, supports the view that customers could continue competing aggressively for future supply.
Lastly, Micron’s roadmap appears positioned to sustain strong growth and demand. Management said HBM4 production is ramping roughly twice as fast as last year’s HBM3E rollout, with yields also improving faster than expected. That points to stronger execution and an improving competitive position in AI memory.
The company is already preparing its next generation product cycle, with HBM4E expected to ramp in 2027. Management said the product will use Micron’s 1-gamma DRAM technology and logic dies from TSMC. Combined with ongoing supply tightness, Micron’s accelerating product cadence could help support further growth.
“Don’t get me wrong,” CFV summed up. “I know that the stock price delivered outstanding results. And I know that it’s always a risk to stay invested. But for those of you who doubt, maybe just trim a bit. I’m not in this place yet. I still believe in the business.”
To this end, CFV rates Micron a Strong Buy. (To watch CFV’s track record, click here)
That is also the conclusion reached on Wall Street. The stock’s Strong Buy consensus rating is based on 27 Buys and 3 Holds. However, the run-up has taken the shares 13% beyond the $657.41 average price target. With this in mind, watch out for price target increases or rating downgrades shortly. (See Micron stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.