Micron (NASDAQ:MU) may not have had the best quarter this time around, but I continue to be bullish on the long-term investment case. In my view, the key metric remains the gross margin trend, which continues to make higher lows and higher highs amid the DRAM downturn. Also keeping me bullish is the current management bench, which has executed exceedingly well through the current cycle.
Longer term, the transition to high-value solutions also underpins the gross margin upside, and thus, I see this cycle as very different from prior DRAM downturns. I wouldn’t try to time the inevitable cycle turn, but if gross margins are not going lower, neither is MU. And if DRAM recovery signs persist, we should see things turn in 2021. With the cautious guide weighing on the stock, I view any near-term weakness as an opportunity to accumulate MU.