Hedge

George Soros

DRAM

<h3 id="key-takeaways">Key Takeaways</h3>
<ul>
 <li>Jim Cramer maintains a bullish stance on Micron despite recent volatility triggered by Samsung’s disappointing buyback announcement</li>
 <li>The company reported fiscal Q3 revenue of $41.46 billion, representing a 346% year-over-year surge, with non-GAAP EPS of $25.11 exceeding expectations by 24%</li>
 <li>With $100 billion in contracted AI revenue secured through 2030, Micron’s HBM and DRAM production capacity is completely booked through 2027</li>
 <li>At a forward P/E ratio of approximately 6, Micron trades at a fraction of Intel’s 68.97 and AMD’s 61</li>
 <li>Cramer identified Micron as his preferred choice among four essential memory chip manufacturers, including SanDisk, Seagate, and Western Digital</li>
</ul>
Jim Cramer continues to champion Micron Technology, arguing the memory chip giant remains severely undervalued despite share price fluctuations driven by developments among South Korean competitors.
<a href="https://knockoutstocks.com/stock/MU" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/MU/embed" alt="MU Stock Card"> Micron Technology, Inc., MU </a>
While Micron shares have surged approximately 254% in 2026, a recent decline has drawn investor attention. According to Cramer, the downturn has virtually nothing to do with Micron’s business performance.
The catalyst was Samsung’s shareholder return program announcement. Market participants deemed it insufficient when compared to SK Hynix’s earlier commitment. SK Hynix had already revealed a plan to repurchase and retire approximately $28.6 billion of its shares between August 20 and November 19.
<a href="https://coincentral.com/samsung-electronics-stock-falls-9-after-shareholder-return-plan-disappoints/" rel="noopener noreferrer nofollow">Samsung</a> was anticipated to unveil returns surpassing $72 billion. The actual announcement significantly underdelivered against those expectations.
<blockquote>
 “The Samsung buyback was regarded as not good enough,” Cramer observed, describing the market’s response as “chimerical” considering Micron’s impressive financial performance.
</blockquote>
<h3 id="the-financial-case-for-micron-is-compelling">The Financial Case for Micron Is Compelling</h3>
Micron delivered fiscal Q3 revenue of $41.46 billion, marking a 346% increase from the prior year. Non-GAAP earnings per share reached $25.11, surpassing consensus forecasts by 23.8%. The company achieved a record non-GAAP gross margin of 84.9%, compared to just 39% twelve months earlier.
The memory maker holds $22 billion in customer deposits from 16 strategic partners, secured with take-or-pay agreements and minimum pricing guarantees. The company has locked in $100 billion worth of AI-related contracted revenue extending through 2030.
Both HBM and DRAM production capacity remain fully committed through 2027. Industry projections indicate AI data centers will account for approximately 70% of worldwide memory chip output in 2026.
Cramer highlighted <a href="https://coincentral.com/trump-just-called-micron-mu-stock-one-of-the-hottest-companies-in-the-world/" rel="noopener noreferrer nofollow">Micron</a> along with SanDisk, Seagate, and Western Digital as four memory chip manufacturers he considers “indispensable” in the current market. He connected the sector’s momentum to remarks from Elon Musk, who stated during SpaceX’s Q2 earnings discussion that memory availability has emerged as the primary constraint for AI data center expansion.
<blockquote>
 “While I acknowledge that I am not early, I do not think I am late,” Cramer explained to his audience.
</blockquote>
<h3 id="the-samsung-connection-explained">The Samsung Connection Explained</h3>
The link between Samsung and Micron extends beyond a single disappointing capital return program. Samsung, SK Hynix, and Micron collectively dominate roughly 90% of worldwide DRAM production. Developments affecting one company are frequently interpreted as indicators for the entire group.
Samsung also initiated mass production of HBM4 in February 2026, establishing a first-mover advantage. Micron continues to focus on shipping HBM3E. This technological gap provides some market participants with justification for concerns about Micron’s competitive positioning in next-generation products.
An additional challenge exists in Micron’s regulatory constraints. The company’s CHIPS Act funding agreement prohibits significant share buyback programs until December 9, 2026. Meanwhile, Samsung and SK Hynix maintain the flexibility to repurchase billions worth of their own shares. Micron currently lacks this option.
Nevertheless, institutional capital continues flowing toward Micron. Hedge fund ownership expanded from 154 to 184 funds between Q1 and Q2. Coatue Management dramatically increased its Micron holdings by 1,794% to $3.6 billion. The fund managed by George Soros nearly multiplied its position eightfold during Q2.
Micron’s forward price-to-earnings ratio stands at approximately 6, creating a stark contrast with Intel’s 68.97 and AMD’s 61. Following a visit to Micron’s Boise, Idaho manufacturing facility, Cramer expressed conviction that the demand environment is genuine. The company has pledged over $250 billion through 2035 toward expanding its U.S. production capabilities.
The post <a href="https://blockonomi.com/why-jim-cramer-remains-bullish-on-micron-mu-despite-samsung-buyback-fallout/" rel="noopener noreferrer nofollow">Why Jim Cramer Remains Bullish on Micron (MU) Despite Samsung Buyback Fallout</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Why Jim Cramer Remains Bullish on Micron (MU) Despite Samsung Buyback Fallout

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