Micron Technology (MU, Financial) has been added as a new short-selling recommendation by investment research firm Hedgeye. According to Hedgeye analyst Felix Wang, the company is unlikely to deliver significant surprises in fiscal year 2025, especially given seasonal challenges anticipated in the second quarter. Management is reportedly working to lower expectations for this period.
Looking ahead to 2025, Hedgeye highlights an impending oversupply of high-bandwidth memory as a key issue. Wang suggests that DRAM production capacity might hit new highs next year. While Samsung's challenges with HBM3e may be resolved, the competitive landscape is expected to intensify, adding to supply concerns. Furthermore, NAND flash memory does not show signs of recovery in 2025.
Despite some improvements in Micron's tone and guidance in non-AI sectors like mobile and PC, skepticism remains about the company's ability to rebound in 2025. Weak demand in certain consumer markets continues to pose inventory challenges.
Micron's stock price has been highly volatile this year. The price reached a record high of $153 in mid-June but had dropped over 40% by early August, falling to $86.
