Analyst Urges Cutting Micron Exposure After 4-Fold Rally to $1 Trillion

1 articles · Updated · Barchart · May 29

$1 trillion Micron is now a trim, not a buy, analyst Mikhail Fedorov said after the stock rose more than fourfold from about $200 since his October call.
The caution rests on Micron's lack of Nvidia-like software lock-in: memory is a standardized JEDEC product, so customers can switch suppliers if rivals match performance and undercut on price.
HBM3E demand and a roughly two-year order backlog have given Micron a temporary edge, but Fedorov said Samsung and SK Hynix remain technologically close and could narrow that lead within 6 to 12 months.
That catch-up would ease the current shortage, pressure pricing and margins, and undermine a valuation that assumes unusually high profitability can persist for years.

Will custom chips from tech giants and new software ultimately slash demand for Micron's prized AI memory?

As competitors re-enter the race, can Micron escape the memory industry's historical boom-and-bust cycle?