Krish Sankar 5.0 1 idea

Sankar states a primary concern for Micron is that high capital expenditure ($25B+) could lead to incremental supply coming online, which would lower pricing and impair gross margins. The memory market is historically cyclical with boom/bust dynamics. Investors fear that aggressive capacity expansion during a boom will inevitably lead to oversupply and price declines. WATCH due to a clear, near-term fundamental risk (capEx-driven supply) that could pressure the stock's elevated valuation despite stellar current demand. AI demand remains insatiable and absorbs all new supply, or the company demonstrates superior pricing power.