2024-03-27 21:08:42 ET
Summary
- Consumer electronics market is starting to sequentially grow, providing a significant tailwind for Micron.
- Memory chip market has entered a phase of sequential growth as a result of CAPEX cuts, AI datacenter demand, and growing consumer electronics demand.
- Micron's valuation is undervalued, with a reasonable forward price-to-earnings ratio compared to industry peers.
Introduction
In my previous article , I had a buy rating on Micron ( MU ). At the time, my bullish thesis revolved around two main reasons. First, there were initial signs of consumer electronics demand recovery, which could positively impact Micron through a recovery in the memory chip demand. After a subdued demand environment throughout 2023, consumer electronics vendors were starting to see positive year-over-year growth at the time of writing. Further, signs of memory chip market recovery were starting to take shape after the memory chip makers including Micron aggressively cut the CAPEX....
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Micron: Reasonable Valuation On Massive Tailwind