ALERT: MICRON HITS $1 TRILLION VALUATION TODAY!
In a Nutshell
Micron hit a $1 trillion market cap after surging over 1,000% in a year to nearly $900 per share, with a new $1,625 price target upgrade. Despite a 35x PE and an Investing Pro fair value suggesting 32% downside, momentum remains strong in semiconductors. The speaker advises treating it as a momentum trade, not shorting near resistance, while warning that rapid reversals are possible.
These notes were generated by AI and may contain inaccuracies.
Micron hit new highs of $8.86 to $8.91 and came very close to the $900 per share level, marking the company as a new trillion dollar market cap stock on Wall Street.
Micron has risen over 176% in the past month and a half to two months. The speaker plugged the stock into Investing Pro and saw a fair value indicating 32% downside, which initially suggested the stock was overvalued. Micron received an upgrade with a new price target of $1,625, up from $535, representing an increase of over 100%.
At the $8.90 per share level when it reached trillion dollar market cap status, the stock appeared overbought. The PE ratio stands at 35, which is lower than Nvidia's. Net income is $24 billion and revenue is $58 billion.
The Investing Pro research shows Micron is growing both fundamentally and technically, with strong price action momentum. This raises the question of whether Micron is simply catching up to its true value or if there is still hype behind the stock.
One year ago, Micron traded at $61 per share. It has now reached highs of $876, representing over a 1,000% ROI in one year and achieving trillion dollar market cap status.
The speaker asks viewers to leave over 500 likes if they want a full fundamental analysis video on Micron. Current advice is to be very careful shorting the stock given its proximity to $900 per share, the trillion dollar market cap milestone, and recent price target upgrades.
The speaker views the price target increases as "fugazi" - institutions already invested raising targets higher without necessarily reflecting fundamental reality. Despite this, the stock can continue rising due to momentum. The recommended approach is to treat this as a momentum play and let it run until it hits resistance and gets rejected.
An example given is QBTS, which appeared unstoppable on Friday but was down 8% the next day. The speaker notes not to directly compare QBTS (a quantum company that loses money annually) to Micron, but uses it to illustrate that momentum can reverse. Currently, conditions are very favorable for semiconductor companies like Micron.
US oil prices reversed losses and rose toward $95 per barrel due to US military strikes in Iran increasing uncertainty around a peace deal. US May consumer confidence fell to 93, below the previous reading of 93.8 and lower than expected.
Attention is focused on semiconductor stocks, quantum stocks that were big winners last week, and the NASDAQ market overall. The market is experiencing significant volatility with large upward and downward moves, which benefits traders but is not ideal for FOMO investors.
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