The tight consolidation span in the AI trade is bound to break soon, and despite the period of seasonal volatility for stocks being on our doorstep, we have a bias to expect the break to be to the upside. Take $Micron Technology(MU)$ for example. The stock has been gyrating between $900 and $1000 for months, but with momentum indicators moving higher from July lows, the Bollinger Band width back to multi-year lows, performance relative to the market regaining a positive slope, a fundamentally strong backdrop, and the period of seasonal strength for the stock upon us, there are more signals to bet for a breakout than a breakdown. $VanEck Semiconductor ETF(SMH)$
If I had to pick two people at the frontline of technology, it would be Jensen Huang and Sanjay Mehrotra. There's probably no other company besides $NVIDIA(NVDA)$ or $Micron Technology(MU)$ where I genuinely feel comfort and confidence through their CEOs.
$Vertical Data Inc.(VDTA)$ A $192 million AI infrastructure commitment has been announced. It includes 1,024 NVIDIA B300 Blackwell Ultra GPUs, a binding take-or-pay structure, and a global AI developer, with a targeted launch in Q1 2027. The float is only around 5.9M. AI infrastructure money is getting real.
$Avnet(AVT)$ I have to laugh at how overdone this pullback is. It is down by a larger percentage than MU. That feels like a joke, and at the same time it looks like a real opportunity to get into this undervalued name.
$Micron Technology(MU)$ For shorts and sellers, every major company including the Magnificent 7 has already committed and raised billions for AI infrastructure. Nothing is going to change that.
$Micron Technology(MU)$ In my view, MU looks like a gold mine. I'm long on MU and I plan to keep holding it for the long term. The overall trend has been pushing MU's price up significantly, and I think it could break its 52-week high in the near future.