Micron has seen its revenue triple and profit margin double in the last year. $MU fundamentals continue to strengthen, but plenty of pessimists think ...
Micron's revenue tripled and profit margin doubled over the past year. While its fundamentals are strengthening, skeptics warn that the memory chip boom may not last, with significant financial stakes at risk.
Background
- This is a post from Anthony Pompliano, a prominent crypto and tech investor known for bullish takes on companies tied to AI and hardware infrastructure.
- Micron ($MU) is a major US-based memory chipmaker specializing in DRAM (dynamic random-access memory) and NAND flash storage. It is a key supplier of the high-bandwidth memory (HBM) used in AI accelerators (e.g., Nvidia's GPUs).
- "Memory shock" refers to the sudden, massive spike in demand for HBM driven by the AI boom. Pessimists argue this demand is cyclical — that memory chips are a commodity whose prices boomed temporarily but will crash as supply catches up, as has happened repeatedly in the past.
- The "trillions" reference reflects the bet that AI infrastructure spending (data centers, chips, networking) will continue at enormous scale. If memory prices collapse, the economics of that build-out shift dramatically.