Micron: A Memory Worth Holdin’?

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Well now, let’s talk about Micron Technology. Seems this here memory chipmaker is hotter than a July sidewalk in Nevada. Business is boomin’, stock’s climbin’ – a sight that’d make even old J.P. Morgan tip his hat. Folks are gettin’ all riled up, wonderin’ if this run’s gonna keep on keepin’ on. And that’s a fair question, mind you. A right fair question.

Some are frettin’ that Micron might stumble, seein’ as its stock’s done quadrupled in the last twelvemonth. They figure what goes up must come down, and that’s usually true of most things… except maybe politicians’ promises. But is Micron a buy, even at this height? That’s what we’re here to chew on, ain’t it?

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The Old Worry About Cycles

Now, any sensible soul talkin’ about Micron is bound to bring up the matter of cycles. It’s a fact, plain as the nose on your face: memory chips are commodities. Like corn or cotton, their price dances to the tune of supply and demand. And I’ve seen a few seasons come and go, let me tell ya – supply always catches up. Always. Folks get greedy, build too much, and then the price falls like a stone. It’s a tale as old as time, and usually involves someone losin’ a shirt in the bargain.

This explains why Wall Street’s been a bit standoffish, lookin’ at Micron with one eye squinted. They’ve set a price target just a hair below where the stock’s at now. Even though a heap of analysts – 38 out of 43, if you believe S&P Global (SPGI +2.22%) – reckon it’s a good buy or even a strong buy. Seems they’re all tryin’ to play it safe, protectin’ their pockets, as usual.

And that cyclical worry’s why Micron’s valuation’s been so low. Despite all the good news, the stock’s only traded at 13 times forward earnings. That’s cheaper than a two-dollar watch! Especially considerin’ it’s suddenly become an “AI stock.” Now that’s a turn-up for the books.

Why This Time Might Be Different

See, the thing is, Micron is gettin’ into this here artificial intelligence game, and that changes the whole picture. This High-Bandwidth Memory – HBM – is crucial for these AI chips. And Micron’s one of only three companies makin’ it. The only one doin’ it right here in the U.S. of A. The other two – Samsung and SK Hynix – are over in South Korea. Good companies, I reckon, but a long swim to come complain if somethin’ goes wrong.

Micron’s already sold out all its HBM for 2026. Can you believe that? They’re negotiatin’ contracts that stretch out for years, givin’ ’em more certainty than a preacher on Sunday mornin’. And in December, they announced they’re gettin’ out of the consumer memory market – that’s always been a bumpy ride – to focus on this enormous AI opportunity. Smart move, if you ask me. A downright smart move.

The company figures demand for AI ain’t gonna slow down anytime soon. Their CEO, Sanjay Mehrotra, said the market for HBM could grow at a rate of 40% a year through 2028. That’s faster than a greased pig at a county fair!

So, Should You Buy Micron?

I suspect Wall Street’s price target is a bit pessimistic. These memory chips might be commodities, but they’re hot commodities – especially HBM. Micron’s sales and earnings should keep on growin’, pushin’ that stock price higher. Is Micron a buy? I reckon it is. A solid investment, if you’ve got the sense to see it. And if you don’t, well, there’s always lottery tickets. But I wouldn’t bet on those either.

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2026-02-19 12:55