MU - Micron: Key Beneficiary Of AI But Too Richly Valued

2024-06-30 08:50:30 ET

Summary

• Micron Technology is a major player in the memory chip market, benefiting from high-bandwidth memory demand for AI models.
• Micron's stock has surged in 2024, but valuation may be stretched, leading to a hold recommendation for investors.
• Micron's federal funding support and strong earnings report are positive, but the stock may be overvalued, with potential for a better entry point.

Micron Technology (MU) is one of three major players in the global memory chip market. The stock has significantly outperformed the broader S&P 500 in 2024, as investors have come to realize the importance of memory , particularly high-bandwidth or HBM capacity in training AI models. Demand for high-bandwidth memory has been the key narrative driver of the stock....

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