Micron earnings 06/24
Posted: Jun 14, 2024
- Key focus on semiconductor industry and importance of memory in Nvidia chips - Looking deeper into companies specializing in memory, like $MU (Micron Technology) - Reasons to consider Micron: - Coming out of cyclical bottom - Raised guidance, showing confidence in market demand - Specializes in energy consumption with efficient chips - US-based supplier, stands out from competitors - Speculation that Micron stock will rise after earnings on 26/06 - Suggested position: 160c 21/07 - Not financial advice
🚨 Reddit sentiment: mixed/positive - While there are concerns about Micron's current pricing and future guidance, most comments are bullish on its production capabilities, job growth, and the potential positive impact of earnings. There's also optimism around its technological advancements and market position. Summarized comments: - Living in the Boise area, they are going full tilt on the new like $8 billion facility they are getting huge incentives for. And there are over 500 job postings in Boise right now. When it is lean they are eager to lay people off, so I'd say they are going gangbusters right now. - I hate myself (again). I was hovering MU 1-2 weeks ago when it was at 129$, and specifically looking for earnings play with 06/28 calls. Was looking at 140$ strike, but decided not to because I have reverse Midas touch. I think I would have tripled, and we're still a couple of weeks out of earnings! Honestly though, at 140$ now it's starting to get dicey. A positive earnings might make it tick up, but not enough to cover the premium. Then again, what do I know. - relax mate, if you had bought calls, it probably would have dropped to 120. Happens to me all the time - it's risky at the current price of $140+, but buying in at ATH of a negative cash flow company is just the kind of regardiness wsb is known for. - im a bit worried about their guidance (which is a big factor in tech), because they're probably already working at full capacity and wont be able to raise it? idk - Micron started full scale production of the memory chips needed for NVDA Blackwell a quarter or two prior to competitors. The timing was good--Blackwell VASTLY increased the number and sophistication of memory chips per GPU (I think 16x but haven't double checked). They also appeared to reprice upward against NVDA when there was that earthquake-based supply disruption a few months back. Hynix has been crushing it and they're still a bit behind MU. I'm very long on MU and will be adding on every dip until earnings. - Q3 is going to be bumper for MU. Average SSD ASP from Q2 to Q3 has gone up 100%. Petabytes sold has also gone up more than 15% Q on Q. They have an NVIDIA QA team in house in Taichung for the HBM qual. 180 target for me. Stock tickers discussed: $MU
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