Sanjay Mehrotra 5.0 1 idea

The CEO stated AI demand is early and scalable, memory supply is tight across all product types (HBM, DRAM, NAND), and Micron can only meet 50-67% of key customer needs. He highlighted massive sequential revenue growth: a $10B increase in Q2 and another ~$10B guided for Q3, reaching a ~$33.5B run rate. AI inference requires more and faster memory tokens, but new supply cannot be added quickly due to long construction lead times, with no meaningful industry ramp until 2028. This creates a prolonged period of allocation and strong pricing power. This supports a LONG view because Micron is a direct beneficiary of this sustained supply-demand imbalance, evidenced by its explosive revenue growth and strong profitability across its portfolio. A sharp, unexpected downturn in AI investment or a faster-than-anticipated capacity ramp by competitors could break the tight supply thesis and compress margins.