Micron Technology, Inc. (MU): A Bull Case Theory

We came across a bullish thesis on Micron Technology, Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on MU. Micron Technology, Inc.'s share was trading at $156.83 as of September 25th. MU’s trailing and forward P/E were 20.66 and 11.20 respectively according to Yahoo Finance.

Micron Technology (MU) sits at the convergence of a rare memory upcycle and a secular AI spending boom, a combination that can dramatically amplify profits through modest changes in price-per-bit and product mix. The company has emerged from one of the deepest troughs in memory history, with FY24 revenue rebounding nearly 50% YoY to $27–28 billion, gross margins recovering to the low 40s, and operating cash flow returning to positive levels as inventory days normalize.

Micron’s strategic focus on high-bandwidth memory (HBM), particularly the 12-high HBM3E ramp, positions it to capture the AI-driven surge in server demand, while disciplined capex ensures long-term HBM and advanced DRAM leadership. The shift toward HBM tightens legacy DDR4 and DDR5 capacity, supporting pricing, while NAND discipline enables slower but durable ASP recovery.

The company’s balance sheet remains resilient, with ~$10–11 billion in cash and investments versus $6–7 billion in debt, and equity exceeding $45 billion, giving Micron flexibility to invest aggressively while sustaining margins. Forward guidance suggests continued revenue growth toward $40 billion by FY26, with potential EPS above $12 if mid-40s margins hold, implying a structural mix improvement versus prior cycles. Execution of HBM yields, customer breadth, and capex efficiency are the gating items; missteps could stall product mix and cap growth.

Technically, MU is in a bullish regime, with EMA ribbons stacked, RSI elevated, and Ichimoku clouds confirming strong trends, though overbought conditions imply pullbacks are likely if results merely meet expectations. Tomorrow’s after-hours report is pivotal: a clear beat-and-raise, strong HBM execution, and firm pricing guidance could drive the stock toward $179–205, while modest or wobbly results may reset it to $154–148 or lower. For medium- to long-term investors, the path is clear—own the trend, buy the dips, and let HBM mix and pricing drive durable free cash flow and compounding upside.

Previously we covered a bullish thesis on Micron Technology, Inc. (MU) by Oliver | MMMT Wealth in April 2025, highlighting strong revenue growth, technological edge in AI memory, and attractive valuation. The stock has appreciated approximately 123% since coverage as the thesis played out. The thesis still stands as secular AI demand persists. Investing With Purpose shares a similar view but emphasizes HBM execution, forward guidance, and technical trends.

Micron Technology, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held MU at the end of the second quarter which was 96 in the previous quarter. While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.