Parkev Tatevosian, CFA on $MU (Nov 6, 2026)

Micron is another semiconductor stock that has declined as a result of the election. Micron's stock specifically fell by 6.6%, a larger percentage than most other semiconductor stocks , because Micron is one of the biggest beneficiaries of this data center boom.

Micron achieved an operating profit margin exceeding 80% for two consecutive quarters. I have been following companies full-time for about eight years, and I have followed hundreds of companies and analyzed thousands of quarterly financial statements, and I have never seen a company achieve an operating profit margin above 80%, not once, until Micron recently did it for two consecutive quarters.

Furthermore, Micron's forecast for the next quarter indicates that it will achieve an operating profit margin of 80 % or more. The prices of its components and the average selling price of its components have increased by triple-digit percentages, and the management team has stated that their products are fully booked until 2028.

They are signing long-term agreements with customers who are now urgently trying to secure supplies many years in advance, whereas previously these customers and companies would have been content to buy products for their immediate needs rather than planning for years ahead.

This long-term planning reduces risks for Micron because it knows more effectively what its customers want and when they need it, which lowers the company's research and development risks.

It also reduces Micron's manufacturing risks and allows it to plan its business more effectively. I'm not saying that Micron's stock is no longer cyclical, but at least the risks of over-construction, overvaluation, and creating products that customers may not want have been mitigated to some extent, thanks to the long-term agreements it has signed with customers.

I calculated the fair value of Micron stock at 1556, and you can buy it today for less than 800, i.e., at a price of $799 per share.