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With revenue surging and profits accumulating, it’s not hard to understand why there’s been so much investor excitement around the memory company. Indeed, Micron is one of only a handful of companies capable of providing the advanced memory needed to run high-octane AI workloads.
That dynamic has propelled demand into the stratosphere, while the growing appetite for memory products has also given Micron incredible pricing power. The company is guiding for $33.5 billion in sales (which would represent sequential growth of ~$10 billion), along with a gross margin of ~81%, in the current quarter.
Still, for all the positive movement, there is a lingering fear that Micron is playing on borrowed time. The memory industry is historically cyclical, the thinking goes, meaning that it’s only a matter of time before things start to go south.
That’s not a concern that top investor Keithen Drury shares.
