Micron Technology $MU

If you still doubt AI, you have not used enough of Grok or ChatGPT. And that’s just the slightest surface of what we are dealing with. It’s clear how insane this technology is and how much GPU power will be necessary, as we have seen with Nvidia’s performance. Now the page will turn to HBM (High Bandwidth Memory), which will be needed for large datasets and complex models. HBM is the only memory solution we have now for AI memory. Below is a forecast from Bloomberg Intelligence for the HBM future market.

Well, forecasting market trends like this is a bit of silly art for me, but it does give you an idea of what can be expected. I am not focused on this trend but the oligopoly that has this market in their tight grips. Micron Technology from USA, SK Hynix and Samsung from South Korea. Samsung is a piece of shit that is just sidelining HBMs, also they are not from USA. SK Hynix has an investment case as they have the largest share of the HBM market, but they also are not from the USA. MU is a relatively small player in this field with about 10% or so share of the market and you can probably guess what my thesis is based on.

Trump will put the nail on the coffin for every other player in this field (America first) until Asia catches back with their snail-fast speed (where does that put EU…?) We are going to see MU rising quite fast and high from the current 109$ share price on 22th of January 2025. Now the only setback here is MU HBM production has already been sold for this current year, but lets see what’s possible when USA goes to “war” with the necessary equipment for AI.

Even Samsung uses Micron memory for their phones:

https://www.koreatimes.co.kr/www/tech/2025/01/133_390609.html

I will be slowly adding to this position and possibly, adding a portion of SK Hynix, probably not. If you want to be more conservative, buy all 3.

//Ville

22.1.2025