Jordi Reina molina @JordiReina: "MU Is Up 150% Since..."

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MU Is Up 150% Since My Post… and Somehow Still Undervalued Exactly one year ago, I shared my view that Micron ($MU (Micron Technology, Inc.)) was one of the most asymmetric opportunities in the semiconductor sector — backed by AI demand, strong partnerships, and a clear industry uptrend. Since then? 👉 The stock is up +150% 👉 Forward P/E is still only ~14 👉 And the long-term thesis remains as strong as ever This is one of those rare cases where a stock doubles… and still looks cheap. Here’s a recap of the thesis I shared one year ago (which I’ll link in the comments): 🔗 The Core Thesis (From My Original Post) 1️⃣ MU is a critical supplier to the biggest players in AI • NVIDIA ($NVDA (NVIDIA Corporation)): Micron produces the HBM (High-Bandwidth Memory) used in Nvidia’s H200 / GH200 AI accelerators. This isn’t optional — AI systems cannot function without cutting-edge memory. • AMD ($AMD (Advanced Micro Devices Inc)): Same story — Micron supplies memory used in AMD’s GPUs and CPUs aimed at AI and HPC workloads. In the AI boom, GPUs get the headlines… but memory captures the margins. 2️⃣ Explosive revenue growth Micron’s FY2024 revenue jumped from $15.5B → $25.1B, showing the start of a powerful recovery cycle. 3️⃣ Analysts were already bullish one year ago Consensus was Strong Buy, with 40% upside. Even after a 150% rally, analysts are still raising targets as AI demand accelerates. 4️⃣ MU sits at the center of the AI super-cycle HBM shortages are real. Demand is still greater than supply. Micron is one of the few companies globally that can produce HBM3E at scale. 5️⃣ Massive structural tailwinds AI servers, data centers, training clusters — all of them require exponentially more memory per node. We’re only at the beginning. 💡 So Why Is MU Still Cheap? Two reasons: 1️⃣ Memory is a cyclical business Investors assume every boom becomes a bust. But AI is not cyclical — it is secular and accelerating. This cycle is different. 2️⃣ Market hasn’t priced HBM supply constraints correctly Nvidia, AMD, Amazon, Google, Meta, Microsoft… All of them are fighting for the same memory suppliers. Micron, Samsung, SK Hynix = the only real HBM sources. Demand > supply for years. 📈 A 150% Run… With More Room Ahead? MU today is in one of the strongest positions in its history: • HBM leadership • explosive data-center demand • improving margins • a forward P/E of 14 (insanely low for an AI-critical company) If current AI investment continues, MU could still be in the early stages of a multi-year AI-capex cycle. ✔️ Final Thought A year ago the opportunity was obvious. Today it’s even clearer — just with more proof behind it. Micron isn’t just “a memory manufacturer.” It’s one of the core enablers of the AI revolution, and the market is only starting to recognize it.

Jordi Reina molina

Spain

$MU (Micron Technology, Inc.) looks like a great investment right now. I added it to my portfolio last week. Collaborative Relationships: $NVDA (NVIDIA Corporation) : Micron supplies high-bandwidth memory (HBM) for NVIDIA’s GPUs, such as the H200/GH200 accelerators. This collaboration enhances the performance of NVIDIA’s AI and high-performance computing solutions. $AMD (Advanced Micro Devices Inc) Similarly, Micron provides memory solutions compatible with AMD’s GPUs and CPUs, supporting various computing applications. Key Reasons to Consider Investing in MU: 1. Strong Market Position: Micron is a leading supplier of memory and storage solutions, including DRAM and NAND flash memory, essential components in various technology applications. 2. Financial Performance: In fiscal year 2024, Micron reported revenues of $25.11 billion, a significant increase from $15.54 billion in the previous year, indicating strong growth momentum. 3. Analyst Confidence: The stock holds a “Strong Buy” consensus among analysts, with an average 12-month price target of $146.28, suggesting a potential upside of approximately 42.35% from the current price. 4. Technological Advancements: Micron’s commitment to innovation is evident in its development of high-bandwidth memory (HBM) solutions, catering to the growing demand in artificial intelligence and high-performance computing sectors. 5. Industry Growth: The semiconductor industry is experiencing robust growth, driven by increasing demand for memory and storage solutions across various sectors, including data centers.