‘The Future Is Bright,’ Says Top Investor About Micron Stock

Micron Technology (NASDAQ:MU) finds itself in an enviable position, having stormed out to gains of more than 150% year-to-date and more than 650% during the past twelve months.

With revenue surging and profits accumulating, it’s not hard to understand why there’s been so much investor excitement around the memory company. Indeed, Micron is one of only a handful of companies capable of providing the advanced memory needed to run high-octane AI workloads.

That dynamic has propelled demand into the stratosphere, while the growing appetite for memory products has also given Micron incredible pricing power. The company is guiding for $33.5 billion in sales (which would represent sequential growth of ~$10 billion), along with a gross margin of ~81%, in the current quarter.

Still, for all the positive movement, there is a lingering fear that Micron is playing on borrowed time. The memory industry is historically cyclical, the thinking goes, meaning that it’s only a matter of time before things start to go south.

That’s not a concern that top investor Keithen Drury shares.

“The future is also bright for Micron,” predicts the 5-star investor, who is among the top 4% of stock pros covered by TipRanks. 

While he acknowledges the supply-and-demand dynamics at play, Drury isn’t worried that the good times have an imminent expiration date. For instance, he cites a recent interview with CEO Sanjay Mehrotra, in which the company head stated that Micron only has enough capacity to meet two-thirds of its customer demand.

And that trend seems likely to continue. Despite the fact that Micron is working to get more production online, it may be a few years before there are sufficient fabrication facilities operating to meet the rabid demand. Drury notes that the memory chip market for data centers is slated to jump from $35 billion in 2025 to $100 billion in 2028.

In other words, the “shortage will be around for a while.” And that leads Drury to offer a very bullish conclusion.

“Micron’s run is just getting started,” concludes Drury. “Don’t be surprised if it continues its march higher due to high demand.” (To watch Drury’s track record, click here)

That’s the spirit on Wall Street as well, where 27 Buys and 3 Holds combine to give MU a Strong Buy consensus rating. Its 12-month average price target of $608.33 has yet to catch up to the racing share price, however, as it would translate to a loss of 16%. (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.