MU - Micron Technology

MU earnings are coming up and the host notes AI is still the leading sector, implying Micron is worth watching as a semiconductor/AI-related play.

Listed among semiconductor stocks taking big hits. Part of the broader sector topping argument — extended after a massive rally.

Goldman Sachs raised its price target on Micron from $400 to $900, but the stock is already trading at $998. Soloway interprets this as a bearish signal - Goldman is effectively saying the stock is overvalued at current levels and will likely decline. He notes that while the headline sounds bullish, the fine print reveals Goldman expects margins to compress as supply comes online.

Memory demand has gotten stronger with 5-year contracts being signed. Jensen Huang predicted memory shortages in 2023 and it came true. The hosts see continued growth in this sub-sector of AI infrastructure.

Stock at $95, up 10.4% on the day. Part of the AI infrastructure/memory trade. Host mentions it as a strong performer in the stock draft context.

Micron is up 156% since Charlie's January buy call and has far exceeded expectations. The value arbitrage is no longer there. He would only get excited again if it dips significantly.

Host has high confidence Micron will beat earnings expectations. PEG ratio at 0.1 is extremely cheap. Memory demand is not going anywhere — Nvidia's SK Hynix partnership validates long-term memory needs. Stock bouncing strongly in overnight markets.

Micron is critical for providing memory solutions necessary for AI operations.

The hosts discuss how every AI tool (ChatGPT, Claude, Gemini, etc.) requires memory for each user, creating massive demand for high bandwidth memory (HBM). Micron is highlighted as a key beneficiary of this trend, and the hosts note that the memory story is still in early innings and has not peaked.

Trimmed cost base due to SemiAnalysis report that Nvidia's Vera Rubin will use significantly less SOCAMM DRAM (28GB vs 192GB modules), raising concerns about long-term memory demand. Still holding remaining shares as 'house money' given strong near-term supply shortage and backlog sold for two years.