Micron’s CEO just said demand is 50% higher than capacity, yet the stock is down 30% from its June peak.
On one side: HBM4 being sold out and a $22 billion long-term order. On the other: after Nvidia’s earnings report, storage stocks collectively plunged. What is the market actually pricing in?
Demand isn’t the issue—the cycle is. What the market fears is that storage price increases will be only a fleeting spike, and that customers will, as Cathie Wood put it, bypass the high-priced components.
More directly: in August, Micron rose as much as 14%, while SanDisk jumped 23%. Strong demand was already baked into the prices. With good news out, it even became a reason to sell shipments.
Don’t forget: insiders cashed out $168 million in three months. After Trump praised Micron as “the hottest commodity,” it still fell in premarket.
If memory prices can really stay elevated through next year, is this truly a mispricing?
On one side: HBM4 being sold out and a $22 billion long-term order. On the other: after Nvidia’s earnings report, storage stocks collectively plunged. What is the market actually pricing in?
Demand isn’t the issue—the cycle is. What the market fears is that storage price increases will be only a fleeting spike, and that customers will, as Cathie Wood put it, bypass the high-priced components.
More directly: in August, Micron rose as much as 14%, while SanDisk jumped 23%. Strong demand was already baked into the prices. With good news out, it even became a reason to sell shipments.
Don’t forget: insiders cashed out $168 million in three months. After Trump praised Micron as “the hottest commodity,” it still fell in premarket.
If memory prices can really stay elevated through next year, is this truly a mispricing?