‘Solving the Crisis’: Investor High on Rising Micron Stock

It’s been quite a day for Micron Technology (NASDAQ:MU), which is surging upward yet again. The company announced the shipment this morning of the 245TB capacity Micron 6600 ION SSD, which it boasts is the world’s highest capacity commercially available SSD.

Micron asserted that this new SSD represents a “major step forward in rack-scale storage density for data centers.” The market, already riding high from the AI euphoria, was convinced.

It’s no secret that data centers are thirsty for energy solutions, making advances in storage density critical for the rapidly scaling technology. This latest jump continues a regular trend for MU, which has gained more than 600% over the past twelve months.

While naysayers have been doubting the staying power of Micron’s rise, due to the cyclical nature of the memory industry, bulls are convinced that the massive needs emanating from the advent of AI have changed the game.

While there’s merit to both sides, it’s no stretch to say that the bulls have been winning the argument thus far. Top investor Rich Smith certainly understands the allure of MU.

“Can anything stop Micron stock’s relentless rise?” asks the 5-star investor.

Smith is high on the new 6600 ION, lasering in on Micron’s claims that it provides “breakthrough energy efficiency versus hard drives.” He further highlights the company’s argument that one storage rack equipped with 6600 IONs can perform the work of approximately five hard-disk-equipped racks.

“For Micron’s artificial intelligence customers who are so starved for energy that they’ve begun building their own nuclear power plants, you have to assume that’ll be an attraction,” he adds. 

To further support the bull case, Smith cites a number of statistics that Micron shared along with the announcement. According to Micron’s testing, when compared with HDD-based systems, the company found that the 6600 ION provided up to 84 times better energy efficiency, 8.6 times faster AI preprocessing, and up to 29 times lower latency.

“Micron is helping to solve the energy crisis in AI,” sums up Smith. (To watch Smith’s track record, click here)

Wall Street remains fully on board the MU express. With 27 Buys and 3 Holds, MU soars to a Strong Buy consensus rating. However, its 12-month average price target of $574.67 points to a downside of 10%, suggesting that the most recent run has gone far higher, far faster than even some of the company’s most stalwart fans had predicted. (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.