[sgbuffett]

Stock has had a set back due to semi con shortage causing laptop and PC makers to halt production hence lower demand for its memory chips

I am not worried about this temporary situation which has helped to bring down the stock price.

Long term digitalisation trend  will translate to rising demand for next decade.

Given the long term prospects the stock valuation is undemanding and will rise with the demand.

The market is shared by just a handful of players...no new entrants is possible. Margins will be maintained.


In the past the company experiences boom bust cycles ...the number of companies in the market fell from more than 10 to 3.

Since 2013, industry cycle is shallower... micron was profitable even at bottom of last cycle.(see below)




Moving ahead the rise of AI and 5G means the demand will grow ...in the previous chart I showed the steady growth of the demand ....but the demand may be exponential as AI and analytics drive data collection and storage.