Should I Buy Micron Technology (MU)? — Finance YouTuber Analysis

The YouTuber recommends Micron Technology because all high-bandwidth memory (HBM) suppliers are sold out through 2026, and Micron is one of only three producers. The closure of the Strait of Hormuz is disrupting helium exports, impacting competitors like SK-Hynix which rely on imported inputs, while Micron uses domestic supply chains. This situation is expected to improve Micron's market share or expand market prices, leading to significant revenue and EPS growth, and a very low PEG ratio.

“Micron runs on US fabs with access to domestic helium reserves and domestic supply chains. So when Korean input costs begin to rise, Micron either gains market share because SK-Hynix produces less, or the whole market's price expands because supply tightens even more.” — ▶ 01:06:59

The YouTuber believes Micron is a strong buy due to soaring demand for memory chips, especially High Bandwidth Memory (HBM) used in AI data centers, coupled with limited supply. They note Micron's inability to meet full market demand and the projected growth of the HBM market. This supply-demand imbalance is expected to drive increased margins and earnings, transforming Micron into a core infrastructure provider for the AI economy.

“When you combine exploding demand, limited supply, rising margins, and accelerating earnings growth all at the same time, that is when semiconductor stocks completely rerate themselves and repric a lot higher.” — ▶ Watch clip

The YouTuber is investing in Micron Technology because it manufactures memory chips (DRAM and NAND) essential for AI workloads, data centers, and other tech. He notes that the memory market is cyclical, and with AI tightening supply, the company is emerging from a down cycle into a period of high demand and exploding earnings, making it a smart time to invest.

“And right now, we're coming out of a big down cycle. And what's happening is AI is actually tightening supply. The reason why supply is tightening is because there's just so much demand.” — ▶ Watch clip

The YouTuber is holding his Micron position because the fundamental thesis of zero supply and rising demand for AI memory remains intact. He views the company as a high-margin utility due to its 'micro monopoly' in a critical component of the AI revolution, with products sold out through 2027.

“I'm currently holding my Micron position because the why I own it hasn't changed. The supply is still zero and the demand is still rising.” — ▶ 10:00

The YouTuber suggests buying Micron on a consolidation back towards the $480 level. This is a tactical play to enter the stock at a more favorable price, acknowledging its recent vertical ascent while maintaining a long-term bullish view on its supply-demand dynamics.

“For Micron, I'd be a buyer on a consolidation back toward the 480 level.” — ▶ 10:30

The YouTuber is avoiding Micron due to its historically cyclical nature, where earnings spike and then decline significantly. He argues that despite the current low forward P/E ratio, this is typical for cyclical businesses at their peak, making the stock appear cheap when it might be expensive in hindsight. He lacks faith that the current earnings growth is sustainable long-term, citing Benjamin Graham and Peter Lynch's views on cyclical stocks.

“So the reason that I am staying out of Micron stock and I'm not looking to enter it here is because I am skeptical that its earnings will be sustained over the longer term.” — ▶ Watch clip

The YouTuber advises current Micron shareholders to 'enjoy the ride' as the company is expected to generate substantial net income and high net margins in the short term (1-2 years). He acknowledges potential long-term risks if hyperscalers reduce spending or new competitors enter the memory market, but sees no immediate threats.

“With MU is another one. Enjoy the ride, right? enjoy the ride. Like, it's a fun ride right now. They're going to make so much money over the next few years. It's disgusting.” — ▶ 19:50

The speaker believes that memory companies like Micron lack a competitive moat, making them vulnerable. Their current high profits are primarily due to price increases rather than technological innovation or added value, which is unsustainable. He predicts Micron will not be among the top five S&P 500 earnings contributors in the next 24 months to 5 years.

“I don't think these memory companies have a competitive mode.” — ▶ 40:00

The analyst sold half her position in Micron due to the cyclical nature of memory chip stocks and signs of consolidation driven by buyers being fed up with high prices, even before news of Google and OpenAI contract issues. She believes the stock was overvalued and took profits.

“but now it's like it's so too good not to take profit and I will be going back in. I think the price was just a little bit too overvalued.” — ▶ Watch clip

The YouTuber took profits on Micron, selling 50% of their remaining position after an 880% gain. While acknowledging its potential to go higher, they prefer to de-risk and reallocate to other opportunities, citing concerns about memory market cyclicality and potential margin compression from software efficiencies.

“I did take some profits of Micron around 50% actually of what was left of that position. Why is that? Well, I'm quite happy with the returns.” — ▶ 00:35