Micron Technology reported record quarterly revenue of $41.5 billion with exceptional profitability (84.6% gross margin) and guided for ~$50 billion in the next quarter. However, the analyst cautions that while new customer contracts and AI-focused products (HBM4/HBM4E) may support the current boom longer than past cycles, memory industry history suggests cyclical downturns are inevitable. The base case projects the stock trading between $800-$1,100 by 2030, implying modest returns from current levels.
Axe note: Micron’s stellar revenue and AI-driven product demand look strong but the memory chip cycle always bites back.