MU - As China blocks Intel and AMD chips Jim Cramer says buy Micron stock

2024-03-25 19:19:21 ET

Famed investor Jim Cramer who also hosts “Mad Money” on CNBC counts Micron Technology Inc (NASDAQ: MU) among the “leaders” in artificial intelligence.

Cramer shares his view on Micron stock

China has reportedly started phasing out U.S. made chips in government computers and servers – a move that hits Intel and AMD’s business in the world’s second largest economy.

Still, at an all-time high suggests “the group is still strong”, added Cramer on CNBC’s “ Squawk on the Street ” on Monday.

Micron’s gains accelerated last week as it reported a surprise profit for its fiscal second quarter and issued upbeat guidance for the future.

Sanjay Mehrotra – chief executive of the Nasdaq-listed firm also recently dubbed “one of the biggest beneficiaries of the multiyear opportunity enabled by AI”.

Micron to benefit from its HBM solution

Micron Technology Inc is expected to significantly benefit from its HBM3E solution that it started mass producing in February ( find out more ).

In fact, CEO Sanjay Mehrotra confirmed on the earnings call last week that the company’s high bandwidth memory (HBM) capacity for 2024 has been completely allocated.

Most of the capacity for next year has been reserved as well, he added. expects to bring in hundreds of millions in revenue from HBM in its current financial year. According to Jim Cramer:

You have to own it. It’s not expensive. CEO Mehrotra is not given to any hyperbole, whatsoever. It’s not his nature, and yet he’s the most bullish I’ve heard him since he’s been running the company.

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