Micron seems to be hit really hard despite delivering amazing quarterly results. People love shitting on micron saying that it has no moat and their business is cyclical but so is everyone else’s in the semiconductor industry. More or less. Their HBM3E memory chips are the best in the world, better than Samsung and sk hynix, consume 30% less power than their competitors and they’ve sold out most of their inventory for FY2024 and FY2025. They made $100 million dollars through their HBM3E sales in the latest quarter, while that is not a lot they are expecting a significant increase in HBM3E revenue in the next few months/years. Their gross profit margin looks good. Cashflow/and debt ratio might not be great but it considering how their revenue is about to explode in the coming months it wouldn’t be something to worry about. Towards the end of this year memory market will go through a demand supply gap which will give an edge to micron to hike up their prices for NAND and DRAM chips. Their traditional DRAM and NAND business is also recovering. So why is the market punishing them so hard?
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