00:00 Speaker A
Micron makes its return to my stock of the day board and frankly, it has earned another shout out. Since the end of March, the stock price has more than doubled, driving what looks to be an unstoppable run and a view that soaring AI demand combined with a memory trip shortage could lead to epic profit gains across the sector deep into next year.
00:23 Speaker A
You can see some of this monster enthusiasm on Micron’s analysis page on Yahoo Finance. 39 buy or strong buy ratings on this stock. Although I will mention the street looks to be asleep at the wheel on their price targets. No clue what the analyst sitting at $249 uh price target is thinking. They may want to catch a clue. Brent, Brooke and Ines are still here with me. Good to see you, Brent.
00:53 Speaker A
Um, Micron has been, I guess the poster child for this rally we’ve seen in chip stocks and technology. what do you even do with a stock like this at this at this point, especially when you’re seeing the market sell off because of hot inflation.
01:14 Brent
I think the biggest risk out there is people are tempted again to concentrate in these narrow parts of the market on beliefs that these profits are going to continue forever, which at least historically has not occurred. Um I’m not suggesting don’t own it, but I’m suggesting to make sure that you stay diversified. That’s where towards the ends of economic economic cycles or when there’s a big theme that’s out there, people tend to overconcentrate and then, um, can win magnificently and also lose magnificently.
01:39 Brent
This is where I would encourage people to remain diversified, kind of stay true to your asset allocation, uh and focus more on just AI becoming a broader benefit to the overall economy and the companies that use it. This was the road map that followed the 2000 uh dot-com era where you saw stocks like this do very well, only in the next, you know, four, five, six, seven years to watch the dot-com um uh profitability uh blossom out into other parts of the economy and other companies and that’s what I expect you’ll see going forward.
02:08 Speaker A
And Ines, it is amazing to me, um, to see Micron trading at over $700. I remember when I was starting out in this industry, nobody really even cared about Micron. It was just a thing on a ticker page somewhere. and now here you are, uh and there’s a high price target I think of $1,000 on Micron. And they’re not alone. You know, if this segment was called stocks of the day, I would add SanDisk. I mean these have been big giant bubble stocks.
02:41 Ines
100%. SanDisk just got a new price target. It had a buy rating from Singular Research. The price target $2,590.
03:00 Speaker A
It’s hilarious. It’s hilarious.
03:02 Ines
That’s that’s insane, right? Uh, look, there’s 22 buys on that, five hold, but SanDisk is the number one performer on the S&P 500 right now, followed by Intel. You’ve got also, of course, Micron in the top five there as well. And all of this is because of the this again, the bottlenecks that we’ve been talking about, but really memory, which has been so cyclical when when it comes to a a a company like Micron.
03:41 Ines
But this time, what the strategists are saying is is like, okay, this time it really is different because of agentic AI, because this bottleneck is going to continue beyond 2027, because we haven’t even gotten to physical AI either, uh, robots, um autonomous really getting in in in the play here. Um this is what’s sort of fueling all of this uh rally or enthusiasm behind these stocks.
