Jim Cramer Says “Micron’s a Cash Machine”

Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer offered insights on. Cramer noted that it makes sense for the company to “blow away the estimates,” as he commented:

 “Yes, it makes sense for Micron… to blow away the estimates and see its stock fly 10% today. This may be the second-largest beat I’ve ever seen, only behind the monster quarter that NVIDIA put up two years ago. It was magnificent. But you must realize that, as great as this is, there’s a very simple reason for Micron’s strength. Demand overwhelms supply…

Look, there have been many times when Micron’s had more demand than it can handle in the 30 years I… [have been] following the company. This time seems much more lasting because there are extreme shortages for all the machines Micron would need to expand its production capacity…

Micron… is the way business should be done. Micron is not paying anyone to take their stuff. There’s just so much demand in these memory chips that they can’t possibly make enough of them. They’re trying hard to allocate what they can give to customers. In the end, that makes me like Micron a lot more than some of these other companies that have an air of desperation around them. I’m a simple guy. I don’t want a stake in a company that wants to buy products because I have no idea what that stake might… be worth. I want to be paid with cash on the barrelhead. Micron’s a cash machine. When in doubt, you know what? You always go with cash. The other methods may come back to bite you.”

A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels

Micron Technology, Inc. (NASDAQ:MU) develops memory and storage solutions, including DRAM, NAND, and SSD products, under the Micron and Crucial brands.

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Disclosure: None. This article is originally published at Insider Monkey.