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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (76668)	12/10/2024 9:30:15 AM
From: Elroy	Respond to of 78594

Groovy. But I think the Micron story is a shift from being third tier in memory to being a leader in HBM memory with DRAM and NAND as the cash cow. MU used to always fall into losses in memory cycle dips. The cycle is peaking in the current quarter, but it seems like the downturn is going to be modest and profitability may continue despite a modest memory slowdown, and HBM memory will be a growth story for a long while, which (perhaps) can allow MU to get a growthy PE (16x?) rather than a cyclical peak PE (6x) over the cycle. MU seems to me like a risky but perhaps fantastic long term story now. Low valuation (12x Nov Q EPS annualized?) and a nice growth (HBM) story combined with traditional memory (DRAM, NAND) cash cow. The $6b credit is a drop in the bucket compared to multiple expansion. MU is going to throw off so much cash in cyclical peaks, it gives them lots of options of what to do going forward.