Micron's Growth Rate Is Remarkable, Munster Says
Speakers
Gene Munster
— Managing Partner, Deepwater Asset Management
Summary
Gene Munster analyzes Micron's earnings, arguing the AI infrastructure buildout is still in an earlier inning than the market believes. He highlights rising hyperscaler CapEx estimates and broadening chip trade, with Qualcomm poised to benefit from personalized AI. The overall message is that AI-driven growth has more longevity than skeptics expect.
- Micron's revenue guide demonstrates sustainability of triple-digit growth despite the law of large numbers.
- Hyperscaler CapEx expectations for 2025 have risen from 15% to 22%, and the Street is now comfortable with 40%+ rates.
- Munster believes the AI buildout is earlier than most realize; he compares it to the second inning.
- The semiconductor trade is broadening beyond traditional leaders, with Qualcomm leveraging AI data center and personalized AI.
- Personalized AI is seen as the next chapter, potentially driving a consumer tech resurgence in late 2023 into 2027-2028.
- Physical AI (autonomy/robotics) is still nascent but will become a bigger theme later.
- Market skepticism about the AI trade's legs will probably be proven wrong.
Ideas
Micron's AI-driven growth is sustainable and early
Micron's strong revenue guide (340% growth for August quarter vs. 370% in May quarter) shows sustainability of explosive growth despite law of large numbers, and hyperscalers now account for ~50% of its revenue, with CapEx growth expectations rising, implying the AI buildout is earlier than most believe and Micron is a key beneficiary.
Chip trade broadening, still early innings
The semiconductor trade is broadening out beyond just a few names, and the market is still underestimating how early we are in the AI infrastructure buildout, setting up continued upside for the chip sector as a whole.
Qualcomm leveraged to personalized AI boom
Qualcomm is pivoting meaningfully into the AI data center space and is positioned for the next chapter of personalized AI, which he believes will drive a resurgence in consumer tech, making Qualcomm a legitimate player beyond smartphones.
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This Bloomberg Markets video, published June 24, 2026, features Gene Munster discussing MU, SMH, QCOM. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Gene Munster · Tickers: MU, SMH, QCOM