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Micron (MU)’s a “Gating Factor,” Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  Micron Technology, Inc. (NASDAQ:MU) is one of the stocks Jim Cramer discussed recently.

Cramer discussed memory semiconductor firm Micron Technology, Inc. (NASDAQ:MU) after the firm’s fiscal first quarter earnings report on Wednesday. The solid set of results saw the firm report $13.64 billion in revenue and $4.78 in adjusted earnings per share. Both of these beat analyst estimates of 12.84 billion and $3.95. Cramer was quite hyped about Micron Technology, Inc. (NASDAQ:MU) ahead of its earnings. He tweeted before the release and wondered whether the firm could “re-ignite the year of Magical Investing?” or if it was a short squeeze instead. After the earnings, the CNBC TV host called the results refreshing and commented that “companies are actually paying Micron instead of Micron paying them to take their chips.”

Micron Technology, Inc. (NASDAQ:MU)’s results also saw Rosenblatt increase the firm’s share price target to $500 from $300 and keep a Buy rating on the shares. As part of its coverage, the financial firm cited that memory price strength and lower costs drove the performance. Discussing Micron Technology, Inc. (NASDAQ:MU) after the earnings, Cramer discussed coverage by Bank of America, JPMorgan, and Morgan Stanley, among others. BofA pointed out that the memory company had a strong balance sheet and would benefit from an extended supercycle. Cramer also mentioned a memory supercycle discussed by Wells Fargo:

“There are gating factors, and one of the gating factors is Micron. Because they are able to, Sanjay’s got, you know he’s got the latest, but it’s really just what he’s saying. But it’s really amazing, which is remember, AI demand acceleration, execution helped drive record quarter. In the quarter, he says, look we are able only to meet 50% to two-thirds of demand from customers. Their price is going up.

“. . .now here’s what the street is saying. Bank of America, stronger for longer, upgrade to Buy. JPMorgan, AI driven memory remains strong, outsized beat and raise. Morgan Stanley, Micron EPS guidance 75% above consensus. And then here’s what David never wants to hear, UBS, as good as it gets and then Wells Fargo, memory supercycle.

“Sanjay has a high bandwidth memory component, that is perfect for the data center.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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