We at the MOON! To the Galaxy !
Micron’s blowout result is bigger than just one stock.
As a key memory supplier for Nvidia’s AI processors, Micron’s strong earnings and US$22 billion in customer supply commitments confirm that AI demand is still running ahead of supply. This is also a positive demand signal for Nvidia, showing that the AI infrastructure cycle is still strong.
The rally also spread to other memory and storage stocks, with SanDisk jumping more than 10%.
Apple is on the opposite side of this cycle. Higher memory and storage prices mean higher production costs, forcing Apple to raise prices on some products.
Micron's profit and revenue guidance beat expectations, customers have already committed US$22 billion to secure memory-chip supply, and demand is still much higher than supply. That is why Micron jumped more than 17% and pulled up the entire semiconductor sector.
More importantly, Micron expects tight supply to continue beyond 2027, while more customers are signing multi-year agreements. This gives the company much better earnings visibility and shows that this is not just one strong quarter, the market is starting to price in a longer and more sustainable memory upcycle.
The long-term story remains strong, but after such a huge run, volatility and profit-taking are still expected along the way.
ARE YOU READY TO FOR A GALAXY RIDE?
My Individual Target: More than $300,000 profit by July, and I'll be giving out $8,888!
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- quixy·13:3322B committed supply is nuts — HBM demand still feels undersupplied. I’d watch how long Micron can keep gross margins this fat, but AI memory is clearly not slowing.LikeReport