This is a good article on Micron Technologies (MU). It clearly lays out the pluses and minuses of owning the stock.
With every stock there are positive and negative aspects. There never is a “free lunch”. Similar to most of our personal relationships, we have friends we really like for some reasons, but they also have characteristics that we may also not really embrace. Stocks re no different.
Our view of any stock should also include our point of reference. For example, I own MU in the low teens. Given that, I have a large margin of safety. But for someone who owns it at current prices, it has a much lower upside and a larger downside. This also brings into play if you are a longer term investor or a trader.
MU has been volatile in the past so it can go down significantly when the economics of the industry change. Supply and demand in memory chips has always been feast or famine. The upside is that with all the smart devices being manufactured and the applications of AI, there is currently a huge demand for memory. Last quarter revenues for MU almost doubled the previous year’s quarter’s revenues.
Keep this in your “memory” if you’re considering MU!
