2024-04-16 09:00:00 ET
Summary
- Our previous Hold rating has not panned out well, with Micron already running away by +44.2%, well outperforming the wider market at +4.5%.
- It is apparent that we have underestimated the bullish support surrounding the stock thus far, as the management also won the HBM3E contract for NVDA's next few launches.
- Perhaps this is why MU continues to report excellent FQ2'24 earnings while offering a promising FQ3'24 guidance and intensifying its long-term capex plans.
- Despite so, the stock has pulled forward much of its upside potential and does not offer a compelling dividend investment thesis.
- With much of the premium already baked through 2026, we do not believe in chasing MU stock at these inflated levels.
We previously covered Micron Technology ( MU ) in January 2024, discussing why Mr. Market continues to reward the stock with the premium valuations, attributed to the refreshed PC replacement cycle and potential tailwinds from generative AI....
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For further details see:
Micron: Optimism Appears Fully Baked In Through 2026 - No Margin Of Safety