Bullish on Micron's Near-Term Rebound

about 1 month ago

Luke Lango

"I think another poster child for this rebound and really an example of that AI spending not slowing down is uh MU. Let's talk about that one too. Yeah. So, Micron is, um, I supply memory for data centers. Very big component in data center buildouts. Memory is super cyclical. Historically speaking, if you look at a stock chart for Micron, this is one that goes up a bunch and down a bunch and it goes kind of like a sinosoidal wave. Like it goes up and down and up and down and up and down. It's super volatile. If you look at the past 20 years of that stock. So this is a stock that, very much like Coreweave, will perform wonderfully when the spending taps are open and will perform poorly when the spending taps close off or start to slow down. Once again, we're seeing the spending taps reopen for an accelerated spending burst in 2026. Micron just reported earnings. The biggest part about that earnings report was not that they did crush the numbers for their quarterly numbers, but it was next quarter's guide. They're going from like 60 to 70% growth to 150, 160, 170% growth. So Micron issued that guidance before this Open AI news. So I really like Micron stock. It's a highly cyclical name. So it's not a name you buy and hold for 5 years."

The speaker highlights Micron (MU) as a prime example of a cyclical stock that could benefit from renewed AI spending. He stresses that while Micron is highly volatile and not suited for long-term holds, its next quarter guidance showing dramatic growth makes it an attractive short-term opportunity.

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