Jim Cramer Endorses Micron’s $1,400 Upside Potential, Increases Charitable Trust Stake

On September 10, a caller presented a detailed financial thesis suggesting Micron Technology, Inc. (NASDAQ:MU) could reach $1,400 per share and sought Jim Cramer’s assessment. Responding on Mad Money, Cramer said:

I mean, that’s a remarkable analysis. It’s spot on in every single number. Every single thing you said is true, which is why my Charitable Trust owns it, and why we are buying it aggressively. And by the way, can I just say if you listen to what… [the caller] said, he put some money away. He was fortunate enough to have money, which I know not everybody can have, but he had money. He put it in an individual stock. Now, if he put it in an index fund, he’d make some money, but he got really rich. And part of my job is not just to get you rich, but to hopefully get you really rich.

High-Bandwidth Memory Demand and AI Infrastructure Positioning

Micron Technology, Inc. (NASDAQ:MU) remains one of only three major global suppliers of DRAM and NAND flash memory, placing it at the heart of the rapidly expanding artificial intelligence infrastructure buildout. As AI workloads demand increasingly high memory bandwidth, interest has grown in Micron’s HBM3E architecture, which is embedded within top-tier AI graphics processors and data center accelerators. Given the limited availability of memory capacity for cutting-edge AI chips across the industry, Micron has locked in long-term supply agreements for its HBM offerings extending through 2026 and into 2027, securing near-term revenue visibility.

Fueled by surging demand for AI servers and recovering prices across traditional memory segments, Micron posted extraordinary growth in its fiscal third quarter. Revenue climbed to $41.46 billion — more than quadrupling the $9.30 billion seen in the prior-year period and rising sharply from $23.86 billion in the preceding quarter. The company showcased impressive operational efficiency, reporting GAAP net income of $28.24 billion ($24.67 per diluted share) and non-GAAP net income of $28.86 billion ($25.11 per diluted share). Operating cash flow surged to $25.39 billion, up from $11.90 billion in the prior quarter and $4.61 billion year-over-year.

Cyclical Challenges and Industry Risks

Despite its central role in the AI ecosystem, Micron operates within a traditionally volatile memory sector marked by significant operational and market risks. Pricing pressures persist due to fluctuating supply and demand dynamics, particularly when oversupply leads to margin erosion amid weakening demand in consumer electronics or corporate IT spending.

Additionally, geopolitical uncertainties and potential trade restrictions related to semiconductor exports continue to pose challenges that could disrupt global supply chains and affect long-term earnings potential.

Institutional Accumulation Rises Amid Light Short Interest

Recent data from Insider Monkey reveals growing confidence among institutional investors in Micron Technology, Inc. (NASDAQ:MU). During the second quarter, 184 hedge funds were reported to hold positions in the company — a notable increase from 154 in the previous quarter. Prominent firms including Jericho Capital Asset Management, Altimeter Capital Management, and Soros Capital Management all initiated new stakes during this timeframe. Meanwhile, short interest remains low at 2.64% of the public float, indicating subdued bearish sentiment even amid broader semiconductor market turbulence.

Although Micron grapples with cyclical downturns, hefty capital investments, and macroeconomic headwinds, its dominance in high-bandwidth memory solutions and robust institutional support underscore its strategic resilience. Long-term performance will largely depend on execution speed in scaling production to meet persistent AI-driven demand.

While we recognize the investment appeal of MU, other opportunities in the AI space may present stronger upside with lower downside exposure. For those seeking an undervalued AI play poised to thrive under pro-business policies and reshoring trends, consider reviewing our free report on the top short-term AI stock.

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