Micron, a lesson in growth investing
Micron's stock is up roughly 650% over the last year. The question this raises is the opposite of the one Adobe investors are asking: not "has the market overreacted to a threat?" but "has the market correctly priced in an opportunity, or is this a bubble?" Is it time to take profits, or is this just the beginning?
What is Micron?
Micron is one of only three companies in the world that manufacture DRAM at scale, the fast, short-term working memory used in virtually every device that computes or stores data. It is also one of a slightly larger group, alongside Samsung, SK Hynix, and Kioxia, that produce NAND flash memory, the long-term storage memory found in the same devices. PCs, phones, cars, cloud servers, and especially the servers that run artificial intelligence all need Micron-style memory chips, and there is no cheap substitute for them.