I have a healthy obsession with Micron (MU) stock.
You probably got this vibe this week on my show, Sozzi Unleashed.
I can’t find a single company in the vast universe of stocks that I follow that is growing by billions of dollars per quarter and trading on a ridiculous single-digit forward price-to-earnings ratio. (Thanks for the reminder on this one, Yahoo Finance AlphaSpace.)
But first hear me out here.
How the stock market works has a lot in common with how top performers think of themselves.
The stock market is always in a race against itself to find the next big thing. Anticipate the next big thing and the trading portfolio could look a lot greener. Overachievers are in the boat, always looking to execute the next big project in an effort to keep their overachiever status intact.
For both, it’s a vicious cycle that often leads to one outcome: not appreciating the here and now.
I think this logic could be applied to Micron’s finances.
Micron blew it out of the water on earnings day this week. I overwrote it on every line item. And with advice.
The main headline was that the memory chip maker beat sales and profit forecasts for the quarter, driven by voracious demand from the AI boom. Guidance was also strong, except for comments on margins during the earnings call, which may have caused a muted market reaction.
1,074.89 -10:50 p.m. (-2.05%)
Closing: October 2 at 4:00:01 p.m. EDT
But keep Micron’s quarter in the right context.
Consider this: Micron added about $43 billion in sales in the most recent quarter compared to last year’s quarter. It added over $13 billion in sales compared to the quarter reported three months ago! This is all huge.
Operating margins have exploded in all business segments. Indeed, operating margins exceed 80% in certain segments.
Additionally, Micron executives are reporting limited capacity and higher prices for its products through 2028.
“We believe expectations of tightening supply and demand conditions through 2027 and 2028 significantly broaden the sector’s runway for strong price and earnings growth, addressing a key investor concern that current fundamentals represent a cyclical peak,” said Gil Luria, an analyst at DA Davidson.
The stock market is forward-looking, so the race is on to predict Micron’s results for the next 12 months. Don’t lose sight of what this company is doing right now, that’s all I’m saying.
The same goes for your surpassing yourself.
Brian Sozzi is the editor-in-chief of Yahoo Finance, host of the Sozzi unleashed the morning show and Power Actors with Brian Sozzi podcast and member of the Yahoo Finance editorial leadership team. Follow Sozzi on @BrianSozzi, InstagramAnd LinkedIn. Any advice on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events that move stock prices.
Read the latest financial and business news from Yahoo Finance
Gn bussni
