Micron Needs To Deliver Excellence, Or Else (Rating Downgrade)
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The Techie4.09K FollowersFollow5ShareSavePlay(11min)CommentsSummaryI'm downgrading Micron Technology, Inc. to a Hold ahead of its fiscal Q1 '26 release, despite strong AI-driven fundamentals and a 186.5% YTD rally.MU's pivot from consumer to enterprise DRAM/HBM, driven by AI and data center demand, supports a structurally bullish long-term thesis.DRAM and NAND pricing is surging amid supply constraints, but MU's near-term risk-reward is unfavorable given high expectations and recent sector volatility.MU valuation remains reasonable at 13.2x forward P/E, but technical momentum has softened. I think that execution and management's tone on earnings are critical for re-rating. Midnight Studio/iStock via Getty Images Market Overview: Micron Technology, Inc. (MU) reports fiscal Q1 '26 results on Wednesday, December 17th, and it is going into print in a market that remains wary of AI names. Both Broadcom (This article was written byThe Techie4.09K FollowersFollowI’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.