JHVEPhoto Micron ( NASDAQ: MU ) has been a key beneficiary of ongoing AI momentum, as its HBM technology continues to play a critical role in chips that underpin the transition to accelerated computing. The stock has more than doubled since the advent of OpenAI’s ChatGPT, outpacing previous losses due to the extended cyclical downturn in consumer-facing end markets. Nvidia’s ( NVDA ) latest introduction of the next-generation Rubin AI platform provides further reinforcement to this secular tailwind for Micron.
Specifically, Micron’s product roadmap already considers next-generation HBM4 technology, which management expects to start volume shipments around the same timeline as the Nvidia Rubin platform’s go-to-market. This will be key to reinforcing revenue visibility for Micron, compensating for the company’s inherently elevated exposure to cyclical risks in the consumer-facing memory market. Meanwhile, near-term capacity constraints continue to be a double-edged sword for Micron.
On one hand, limited supply helps maintain its price advantage in the HBM market. Yet constrained production capacity could also hamper its share of the rapidly expanding market fuelled by ongoing AI developments. While our last coverage discusses the gives and takes in Micron coming out of its strong fiscal Q2 earnings, the following analysis will dive further into expectations for the stock’s anticipated outlook heading into the next earnings season.
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