Baron Opportunity Fund on Micron Technology, Inc.

Micron is benefiting from a structural AI bottleneck because inference performance increasingly depends on memory bandwidth and capacity as well as compute. The manager expects memory demand to outstrip supply for multiple years, supporting pricing and earnings. More importantly, long-term strategic supply agreements are making customer demand more visible and reducing the extreme cyclicality historically associated with memory. High-bandwidth memory and future products that embed controller logic are also increasing differentiation and making memory less commodity-like. The fund believes these changes can support both materially higher earnings and a higher valuation multiple.