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

We came across a bullish thesis on Micron Technology, Inc. (MU) on Daniel Romero’s Substack. In this article, we will summarize the bulls’ thesis on MU. Micron Technology, Inc. (MU)'s share was trading at $108.56 as of 6^th June. MU’s trailing and forward P/E were 25.97 and 10.16 respectively according to Yahoo Finance.

Micron Technology is emerging as a pivotal enabler of the AI revolution, thanks to its leadership in high-bandwidth memory (HBM)—a critical component of every AI accelerator. As demand for compute scales exponentially, memory, not compute or foundry capacity, has become the industry’s primary bottleneck.

HBM, which is essential for AI workloads, is produced by only three firms globally: Samsung, SK Hynix, and Micron. While SK Hynix leads narrowly on speed, Micron has leapfrogged rivals with its HBM3E, offering 50% more capacity per stack and 20% better energy efficiency. This technological edge helped Micron secure key supply roles for NVIDIA’s GB200 chips and similar systems from hyperscalers like Google and AMD. The company is already sold out of its HBM capacity through 2025 and is ramping CapEx to address what it calls a multi-year demand inflection.

Beyond HBM, Micron is well-positioned across the AI memory stack, including DDR5, GDDR6X, and NAND, all of which are seeing surging demand as AI workloads expand into data centers, PCs, and edge devices. Crucially, Micron is the only U.S.-based player in the HBM oligopoly and is leveraging the CHIPS Act to build the largest chip project in U.S. history, reinforcing its geopolitical and supply chain advantage. Despite this, Micron’s stock trades near pre-ChatGPT levels, reflecting cyclical fears and macro uncertainty.

Yet, its financials remain strong, with record operating cash flow, rising capital investment, and shareholder returns totaling $4.9 billion. As AI demand grows and memory pricing tightens, Micron’s potential rerating offers investors a compelling, asymmetric opportunity with limited downside and long-term upside.

Previously, we highlighted a bullish thesis on Micron Technology from Oliver|MMMT Wealth on Substack, which focused on its underappreciated valuation and accelerating growth from AI-related memory demand, particularly as Amazon expands its data centre CapEx. The thesis emphasized Micron’s consistent product improvements and its edge over competitors like Samsung. The stock price of MU has appreciated by approximately 54% since then.

Micron Technology, Inc. (MU) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held MU at the end of the first quarter which was 94 in the previous quarter. While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey