Micron Technology Plans to Invest $3 Billion

Micron and Sandisk are both still undervalued, but Sandisk has a greater implied upside

This is not just a fundraising move, but also a strategic play to capture the attention of AI investors.

Micron's third-quarter revenue, net income, and gross margin reached an all-time high, with a gross margin of 84.9%. The after-hours stock price rose by 14%. The company stated that it has entered into long-term price lock agreements with mega-scale customers and anticipates that the tight memory supply will persist beyond 2027.

The market is concerned about the imbalance between AI capital expenditure and return on investment, South Korea's expansion plan exacerbating future oversupply, as well as arbitrage trading and leveraged ETF adjustments, all of which have triggered a sector sell-off.

All new hashrate requires "greater memory capacity" to sustain.