Micron Technology, Inc. (NASDAQ:MU) was among Jim Cramer’s stock calls on Mad Money as he discussed how semiconductor and AI infrastructure stocks are driving the market higher. Cramer addressed the memory and storage supply shortage and high demand, as he stated:
These days, the big winners are the memory and data storage stocks. Micron’s up 777% over the past 12 months alone. Sandisk’s up 4,162%. Western Digital’s gained 984%. Seagate jumped 712% over the same period. But these are real companies that make real things. And right now, they’re practically just printing money simply because there’s so much demand and so little supply. Believe it or not, but they may all be undervalued because of this fourth industrial revolution… Earlier this week, I told you that some stocks are galloping higher because they have to go where they have to go. It sounded like circular reasoning, I understand that.
We keep seeing it happen, though. Micron rallied another 15% today to $746. Why? 746, why? Because it’s going to $1,000. It needs to go through the 700s, 800s, and 900s to get there. Even after… $1000, the stock would still be pretty… cheap on an earnings basis. Micron can keep running because there’s endless demand for its chips from the data center companies and not enough supply, so pricing just gets better and better and better. Right now, the stock sells for just six times earnings. Same exercise with Sandisk. In fact, it could be even cheaper than Micron, despite already rallying a lot harder.
So what do you do? Unlike the old days when we were flipping the dot-com IPOs, you gotta pick some of these moonshots and stick with them… As long as you have some cash on the sidelines and your portfolio has some diversification, you have my blessing to buy these red-hot stocks, even if you missed them, even if you missed a lot, even if you’re just getting in on Monday. If you have nothing but the memory plays and someone comes up with a… mousetrap, you’re going to lose a lot of money, hence the need to diversify among the plays. But of all the people I’ve talked to in the business, nobody knows of anyone who’s even trying to tackle a memory shortage, so these stocks keep running and running. And it’s not too late to buy them here because the price-to-earnings multiples are simply too low.
Stock market data. Photo by Burak The Weekender on Pexels
Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions, including DRAM, NAND, and SSD products, under the Micron and Crucial brands.
While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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