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MU is on fire with room to run

u/willbabu · Reddit — r/wallstreetbets · May 09, 2026 at 13:50 · ⬆ 70 pts · 💬 74 comments  | View on Reddit ↗
AI Summary

Summary

  • The post argues that Micron (MU) has more upside despite a massive rally, driven by HBM shortages, record revenue guidance, and S&P 100 inclusion.
  • The author’s thesis rests on hyperscaler demand exceeding supply, rising EPS revisions, and a still-reasonable forward multiple.
  • The analysis is well-researched DD with fundamental data and explicit positions, though it lacks discussion of cyclical risks or margin peaks.
Score 70
Comments 74
Upvote % 77%
Full Post Text
Ideas
u/willbabu Reddit r/wallstreetbets
MU’s HBM is sold out through 2026; customers are only receiving 50–66% of their requirements, and hyperscalers (MSFT, META, AMZN, AAPL) explicitly cite a prolonged memory crisis. This structural shortage drives pricing power and revenue upside. Management guided ~$33.5B next quarter (a $10B sequential jump), and 196% YoY revenue growth shows acceleration, not peaking. The market is still underpricing the duration of the HBM cycle. With S&P 100 inclusion forcing index fund buying and analyst targets rising (DA Davidson $1,000), the path of least resistance is higher into June earnings. Semiconductor cyclicality is real; MU has already run 8x in the past year; any demand slowdown from hyperscalers or a shift in capex could reverse gains. Parabolic moves often correct sharply.
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This Reddit post, published May 09, 2026, features u/willbabu discussing MU. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/willbabu  · Tickers: MU