$Micron Technology(MU)$ $Direxion Daily MU Bull 2X Shares(MUU)$ $GraniteShares 2x Long MU Daily ETF(MULL)$ Ford and GM just added another leg to the bull case for Micron. The company secured a long-term memory and storage supply deal with Ford, right after a similar one with GM. Software-defined vehicles are going to require significantly more DRAM per car, which stacks on top of the existing AI data center demand that's already driving prices.
Key numbers:
- DRAM accounted for 76% of Q3 FY26 revenue, up 67% quarter-over-quarter.
- HBM4 revenue has already passed $1 billion and is ramping twice as fast as HBM3E.
- Management now sees the HBM market topping $100 billion by calendar year 2027.
- They have 16 multi-year take-or-pay contracts, providing locked-in revenue visibility.
- Tight DRAM and NAND supply is expected to persist beyond CY2027.
Capacity is ramping in Taiwan, Virginia, and Idaho to keep up. The stock still trades at a cheaper valuation than most AI-adjacent names and has a Zacks Rank #1 (Strong Buy).
So the thesis now has three legs: automotive, AI data centers, and tight supply. Not financial advice, just tracking the setup.
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