SSNLF - Micron: Optimism Warranted But Overhype Warning Getting Closer (Downgrade)
2024-03-09 08:30:00 ET
Summary
- Micron Technology stock has finally re-tested its early 2022 highs, justifying my optimism in MU at its cyclical lows.
- Micron remains a crucial beneficiary of the AI revolution as it aims to take share from SK Hynix with its HBM3E product.
- SK Hynix has unveiled a $1B investment to improve its advanced packaging and aims to entrench its leadership further.
- Micron will be pressured to do more, intensifying execution and potential oversupply risks.
- Optimism in MU isn't misplaced, as its earnings have likely bottomed out. However, overhype danger is inching closer, warranting a downgrade out of caution.
I last updated Micron Technology, Inc. ( MU ) investors in late December, arguing why Micron's improving fundamentals and price action are constructive for a further recovery. My thesis has played out accordingly, as MU re-tested the $100 level, reaching its previous highs last seen in early 2022....
Micron: Optimism Warranted But Overhype Warning Getting Closer (Downgrade)