They say memory fades. Which, frankly, is a relief. I’ve spent the better part of three decades staring at screens, trying to predict the future based on little more than quarterly earnings reports and the increasingly frantic pronouncements of analysts. It’s a bit like trying to predict the weather by studying tea leaves, only the stakes are considerably higher. And the tea is, invariably, lukewarm.
Lately, everyone’s been obsessed with memory, but not the kind I’m worried about. They want digital memory. Specifically, the kind made by Micron (MU 0.62%). The stock’s been on a tear, up nearly 280% in a year. It’s enough to make a cynical investor like myself suspect I’ve missed something. Or, more likely, that everyone else is just experiencing a collective delusion.
The Tightness, as They Say
Micron, it turns out, doesn’t want to bother with you and me. They’re abandoning the consumer memory market – those little flash drives you lose in the sofa cushions – and focusing entirely on data centers. Apparently, artificial intelligence has a voracious appetite for storage. Who knew? I pictured AI as a disembodied voice, politely requesting more processing power. Not a digital hoarder.
The CEO, Sanjay Mehrotra, recently told someone – probably a very earnest reporter – that demand is outpacing supply and that this “tightness” will continue until 2027. 2027! That’s practically a lifetime in tech years. It’s like saying your sourdough starter will be perfect in five years. You’ll probably be dead by then.
But it makes a sort of twisted sense. They’re abandoning the impulse buys, the things people lose or accidentally step on, and focusing on the big, reliable contracts. The kind of contracts that keep accountants happy. Which, let’s be honest, is the real goal of any business.
Still Climbing?
So, is there still upside? Well, the stock is trading at 38 times earnings, which feels…optimistic. My Aunt Mildred has more sensible investments. But the forward P/E ratio is only 13, which is below the S&P 500 average. Which means, if you believe the analysts (and I generally don’t), it’s not completely insane.
In the last quarter, Micron’s revenue was $13.6 billion, up 57% year-over-year. Operating profit nearly tripled. It’s the kind of growth that makes you wonder what they’re not telling you. Probably nothing. Just good management. Or a temporary surge in demand. Or the impending robot apocalypse. Who knows?
I’m not saying it’s a sure thing. Nothing is ever a sure thing. Especially in the stock market. But if you’re looking for a way to participate in the AI gold rush, and you’re willing to take a little risk, Micron might be worth a look. Just don’t blame me when it all goes south. I’m just a man, desperately trying to remember where I put my keys.
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2026-01-29 22:32