Thread by @PortfolioPatch

Great piece in @barronsonline yesterday regarding the outlook for $MU ... stock trading at $60 as of writing, and could easily soar above $100 in the next year.

Read this thread for the investment thesis ⬇️⬇️⬇️

As the 4th largest semiconductor manufacturer in the world (DRAM and NAND), $MU biz is very cyclical and should be near the trough of their cycle. This past year, the company lost 10% of it’s business when they lost their largest customer, #Huawei as a result of the US crackdown

Despite a tough year, the stock is still up about 10% YTD. Additionally, the company continued to invest $2.6B in R&D and over $8B in capital equipment —> enabling significant advantages over competitors in the memory chip space. $MU

$MU memory chip demand will only increase in the future. DRAM (70% of Rev) chips go in laptops, smartphones, cars, servers, etc. NAND flash is the company’s other revenue driver, which is the most widely used nonvolatile storage device in the market.

Key growth areas for $MU chips:

1) 5G phones (uses up to TWICE the amount of DRAM and flash as 4G)

2) Boom in EV and Tech-advanced vehicles (memory content per vehicle growing larger and larger)

3) Data Centers shifting towards microprocessors w/ more cores (DRAM and NAND)

The market is clearly going to demand more memory chips over the next decade as products will require better tech. capabilities. $MU supply chain is 2nd to none w/ strong relationships and continued capital spending, with little competition due to high barriers to entry $SPY $QQQ

As many think $MU has reached its cyclical bottom, this company is positioned well in a highly-demanded and expanding industry.

My prediction: $MU stock will reach $100 in the next 12 months

#timestamped #semiconductors $SPY $QQQ