Memory Boom to Continue for 2 More Years...Micron (MU) Bets $10 Billion on a Decisive Move

▲ Micron (MU), HBM, Artificial Intelligence (AI), Memory Chip/AI-generated image

Micron Technology (MU) is drawing market attention with its long-term outlook for the memory industry and its plan to invest $10 billion in research.

According to Benzinga on September 16 (local time), Jordan Cvetanovski, Chief Investment Officer of Pella Funds, predicted that the boom for memory companies could continue for another 1-2 years. He cited unusually high profit margins and industry profitability as reasons. This analysis suggests a positive environment for Micron, which is sensitive to memory demand and prices.

Micron is also accelerating long-term research and development investments. The company has appointed Deirdre Hanford as President of Micron Research Labs. The research organization, unveiled last August, will receive $10 billion over the next 10 years. The research hub, located in Boise, Idaho, USA, will focus on next-generation memory and computing architectures, advanced packaging, and next-generation semiconductor manufacturing technologies.

This research investment is part of Micron's long-term plan to invest over $250 billion in manufacturing and R&D in the United States. Hanford worked at Synopsys for 37 years and has experience in semiconductor design, security, and public-private research collaboration. Micron also plans to expand joint research with universities, governments, startups, and technology partners.

In terms of technical trends, a long-term uptrend and a short-term pause occurred simultaneously. Micron maintained a level 48.6% above its 200-day simple moving average of $629.08 and 4.6% above its 100-day simple moving average of $894.23. Conversely, it was 2.2% lower than its 20-day simple moving average of $956.22. The Relative Strength Index was 46.59, indicating a neutral level. Benzinga's analysis indicates that the long-term upward structure is maintained as the 20-day moving average is above the 50-day moving average, and the 50-day moving average is also above the 200-day moving average.

Attention is now turning to the earnings announcement on September 30. Wall Street expects Micron's earnings per share to be $31.30 and revenue to be $50.78 billion. Mizuho maintained its "outperform" rating on August 25, and New Street Research upgraded its rating to "buy" on August 14. Citigroup also maintained its "buy" rating on August 7.

[Article Key Summary]

-A forecast has been made that the industry boom for memory companies could continue for another 1-2 years, based on their high profit margins.

-Micron will invest $10 billion over the next 10 years for next-generation memory and semiconductor research.

-Wall Street expects Micron's earnings per share to be $31.30 and revenue to be $50.78 billion in its September 30 earnings report.

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