The Gabelli Growth Fund on Micron Technology Inc.
Thesis
AI-driven demand for High-Bandwidth Memory is consuming substantially more wafer capacity and creating a structural shortage across DRAM. New multi-year customer agreements could reduce the cyclicality that historically defined the memory industry. With data-center revenue now more than half of sales and HBM4 ramping, Gabelli believes Micron can benefit from a more durable memory supercycle.
“we believe Micron is well positioned to benefit from a memory supercycle that looks more durable than prior industry cycles.”
Key risks
- Memory has historically been cyclical