Dec. 1 at 2:44 PM
$MU Micron’s (MU) time-to-manufacture and sell memory chips with the time and cost required for Dell (
$DELL), HP Enterprise (
$HPE), and Lenovo (
$LNVGY) to manufacture and sell computers. Which business model offers better returns over the next five years .
MU’s memory business or the computer?
Winner: MU (Memory Business)
Reasons:
1. AI is memory-hungry — HBM, DDR5, LPDDR5X demand explodes.
2. Supply is tight for 5+ years , because few players control production.
3. Pricing power returns , because MU earns more by changing price rather than volume.
4. OEMs face commoditization . Because low margins, no pricing power.
5. MU’s cycle is turning upward . Because inventories cleared, capex cuts → tight supply in 2026–2028.
