Jim Cramer on Micron: “The Demand Is the Strongest I’ve Ever Seen”

What we’re measuring is what was up the astir since the adjacent connected March 30th. That was the time that the broader marketplace bottomed until the adjacent past Friday. And erstwhile we look astatine the apical 10 performers successful the S&P 500 implicit that period, what we find is not conscionable tech, but much specifically, a full batch of information halfway play tech. Why don’t we commencement with representation and information storage… Sandisk, Seagate, Western Digital, and Micron, those were the second, fourth, sixth, and 10th champion performers successful the S&P since the bottom. After soaring past twelvemonth and soaring again successful January, these stocks didn’t adjacent truly propulsion backmost successful February and March. They mostly conscionable traded sideways.

As of Friday’s close, Sandisk was up 61% earlier the bottom, Seagate up 51%, Western Digital up 48%, and Micron up 41%. It’s getting to the constituent wherever I don’t adjacent cognize what to accidental astir these retention institution stocks… The determination started retired legit, okay, unfolding arsenic investors realized that the hardware for AI requires tons much representation than anyone thought, but for Jensen Huang, and determination simply wasn’t capable to spell around. It could instrumentality years to physique capable accumulation capableness to lick this shortage. So I admit wherefore radical support buying these stocks.

That said, I’m a small wary of what happened erstwhile Micron reported past month. They delivered a truly beardown quarter. It was, nevertheless, a antagonistic catalyst for the banal due to the fact that it came successful excessively hot. Micron’s mostly recovered since then, but it inactive hasn’t taken retired its mid-March high. As ever with the representation plays, you got to support 1 oculus connected the exit due to the fact that this is and tin beryllium a boom-bust industry. You don’t privation to beryllium near holding the bag. But for now, this radical is precise overmuch inactive moving due to the fact that determination conscionable isn’t a batch of proviso coming on, and the request is the strongest I’ve ever seen. And erstwhile I accidental coming on, I mean implicit the adjacent 18 months, I don’t spot immoderate proviso coming connected of immoderate substance.

Photo by Yiorgos Ntrahas connected Unsplash

Micron Technology, Inc. (NASDAQ:MU) develops representation and retention solutions, including DRAM, NAND, and SSD products, nether the Micron and Crucial brands.

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