Jim Cramer said he would not sell Micron Technology shares to lock in gains, calling the stock “incredibly cheap” at about 13 times earnings and perhaps six times next year’s earnings. He said that valuation underpins a “giant position” in the Charitable Trust.
On the Sept. 18 episode of Mad Money, a caller who said they had held Micron since 2014 asked whether to take profits ahead of an earnings report the caller said was expected at month’s end. RBC Capital maintained an Outperform rating and $1,500 price target, citing demand exceeding supply and bottlenecks in high-bandwidth memory production, clean-room capacity and extreme-ultraviolet lithography; it put Micron at about 6.5 times projected forward earnings. Insider Monkey counted 184 hedge funds holding shares at Q2-end, up from 154 a quarter earlier, and short interest at 2.64% of float.
The article also flags risks from Micron’s capital-intensive expansion: building fabrication plants and scaling manufacturing require heavy upfront investment, and annual capital expenditures are near record levels. It says a pause in AI infrastructure spending or slower cloud-provider deployments could compress margins because of high fixed costs.
