MU Stock: CFO Signals AI Spending – So What?
Micron's AI Hype Train: All Aboard, or Already Derailed?
Alright, let's talk Micron (MU). Up 169% this year? Give me a break. Another freakin' AI hype train leaving the station, and everyone's scrambling for a ticket. But are we actually looking at the tracks here, or just blinded by the shiny new engine?
The "Strongest Position in History"? Yeah, Right.
Micron's CTO, Scott DeBoer, is out there saying they're in the "strongest position in history." Strongest position in history? Seriously? Every damn company says that. It's like the default PR setting. What else is he gonna say – "Yeah, we're kinda screwed, Hynix is eating our lunch"? Didn't think so.
He claims solid yields on their gamma node and product ramps for the next two years. Okay, fine. But what about five years from now? Ten? This whole AI boom feels like 2000 all over again – dot-com mania, everyone throwing money at anything with a ".com" attached. And we all know how that ended.
And CFO Mark Murphy hinting at higher capital spending? Surprise, surprise. You can't build AI infrastructure with fairy dust and good intentions. It costs cold, hard cash. And who's gonna pay for that? We are, offcourse. Micron's stock dipped on the news, because investors apparently have the memory of goldfish. Did they think this stuff was free? Micron Stock (MU) Falls as CFO Signals Greater AI Capital Expenditures
UBS is Drinking the Kool-Aid (Again)
Then you've got UBS analyst Timothy Arcuri, bless his heart, sticking to his "Buy" rating and even raising the price target to $275. He thinks supply tightness will last through 2026 and HBM supply is "fully booked." Okay, that's great for Micron right now. But what happens when Samsung and SK Hynix ramp up their production? What happens when the AI bubble (and let's be real, it is a bubble) bursts?
Arcuri thinks HBM will "crowd out" the traditional memory market, with most capacity additions going towards HBM through 2027. Maybe. Or maybe the market shifts again. Maybe some new technology comes along and makes HBM obsolete. The tech world moves faster than a caffeinated hummingbird.
He even thinks DDR5 contract negotiations are approaching +20% quarter-over-quarter, and mobile DRAM deals are up nearly 40% sequentially. Those are some big numbers. Are they sustainable? That's the million-dollar question, ain't it?
The Rollercoaster Never Ends
I've been watching Micron long enough to know this is a cyclical bloodbath. Up, down, up, down...it's enough to make you seasick. Some other analyst out there wrote about holding Micron for 13 years and seeing a 2,833% gain. Good for them. I bet they also aged about 30 years in the process from the stress.
This isn't investing; it's gambling with extra steps. Every few years, there's a new "it" thing – smartphones, software-as-a-service, working from home – and Micron rides the wave until it crashes. Then everyone panics, the stock tanks, and we start all over again.
And these analysts giving "Strong Buy" ratings? They're just trying to justify their existence. They need to keep the hype train rolling to keep their jobs.
But hey, maybe I'm just a bitter old cynic. Maybe Micron really is different this time. Maybe AI will save the world, and Micron will be the hero we all deserve. Or maybe...
Wait, Are We Even Asking the Right Questions?
All this talk about Micron's stock price, its market position, and its potential for growth... it's all just noise. The real question is: Are we actually solving any real problems with all this AI hype, or are we just creating new ones? Are we building a better future, or just a faster way to generate clickbait and targeted ads?
So, Who's Holding the Sick Bag?
Micron's riding high now, sure. But I'm not convinced this AI joyride has a happy ending. This feels like a classic pump-and-dump scheme disguised as technological innovation. I'm not buying it.