With shares up by roughly 1,200% over the last five years, Micron Technology (NASDAQ: MU) is a standout performer in the generative artificial intelligence (AI) megatrend. But the company's rocketship rally has come under threat. And shares are down around 23% from their all-time high of $1,213 reached on June 25th as investors grow nervous about competition and the sustainability of its high margins.
Let's dig deeper into Micron's pros and cons to decide whether the dip is a long-term buying opportunity or a sign of more trouble to come.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Usually, large corporations find their raison d'etre early in their life cycles. But Micron has been a late bloomer. The company has spent most of the last few decades providing memory hardware for consumer markets, such as personal computers and smartphones, where it has endured brutal competition and low margins. Shares barely budged in the two decades between the dot-com bubble and the COVID-19 pandemic.
However, the arrival of generative AI gave the company a new lease on life as data center operators quickly realized that high bandwidth memory had become one of the primary bottlenecks in creating more powerful large language models (LLMs).
#company #years
Let's dig deeper into Micron's pros and cons to decide whether the dip is a long-term buying opportunity or a sign of more trouble to come.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Usually, large corporations find their raison d'etre early in their life cycles. But Micron has been a late bloomer. The company has spent most of the last few decades providing memory hardware for consumer markets, such as personal computers and smartphones, where it has endured brutal competition and low margins. Shares barely budged in the two decades between the dot-com bubble and the COVID-19 pandemic.
However, the arrival of generative AI gave the company a new lease on life as data center operators quickly realized that high bandwidth memory had become one of the primary bottlenecks in creating more powerful large language models (LLMs).
#company #years
4 days ago
