Equity Long-Short

Mo Aziz

Equity Bottom-Up

<ul>
<li>Only US-headquartered advanced memory IDM; 16 take-or-pay SCAs with US$100bn contracted minimum revenue structurally truncate the earnings left tail — a framework no prior memory cycle possessed.</li>
<li>SCA framework argues for a blended multiple between commodity memory (5–8x) and capital equipment (18–30x); market currently prices zero contractual premium.</li>
<li>BUY, US$1,400 PT (11x FY2027E non-GAAP EPS US$125); partial credit only to SCA re-rating — full credit to 14x implies US$1,750+.</li>
</ul>


Only US-headquartered advanced memory IDM; 16 take-or-pay SCAs with US$100bn contracted minimum revenue structurally truncate the earnings left tail — a framework no prior memory cycle possessed.
SCA framework argues for a blended multiple between commodity memory (5–8x) and capital equipment (18–30x); market currently prices zero contractual premium.
BUY, US$1,400 PT (11x FY2027E non-GAAP EPS US$125); partial credit only to SCA re-rating — full credit to 14x implies US$1,750+.


MICRON TECHNOLOGY (MU US) — Initiate with BUY (TP US$1,400)

Equity/Index & Cross Asset Volatility Specialist, Cameron Design

Jay Cameron

Equity/Index & Cross Asset Volatility Specialist

Cameron Design

We specialize in financial products and volatility. Our strategies balance speed, data, and risk control to capture opportunities across global markets. Our research leverages AI and data analytics to continuously refine our algorithms and adapt to evolving market dynamics.

Equity Derivatives

<ul>
<li>Micron is capitalizing on the AI-driven memory deficit, resulting in fully sold-out HBM capacity for 2026 under favorable, high-margin, multi-year pricing agreements.</li>
<li>Recent financial results show significant year-over-year revenue growth and strong gross margins, while geopolitical risks remain key constraints.</li>
<li>While the core fundamentals could support upside, the current elevated cost for near-term volatility suggests careful, directional positioning is necessary for making profit.</li>
</ul>


Micron is capitalizing on the AI-driven memory deficit, resulting in fully sold-out HBM capacity for 2026 under favorable, high-margin, multi-year pricing agreements.
Recent financial results show significant year-over-year revenue growth and strong gross margins, while geopolitical risks remain key constraints.
While the core fundamentals could support upside, the current elevated cost for near-term volatility suggests careful, directional positioning is necessary for making profit.


Micron (MU): Capitalizing on the AI Memory Deficit and Historic Operating Leverage

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>Big ~20% beats. Consensus is ~20% too low for FY26 and FY27. The stock is trading at 7.1x FY27 EPS. </li>
<li>The most important part of the call are the details on the long-term agreements that cover ~25% of volumes ~50%+ of revenues, with floor/ceiling pricing and margins above previous peaks.</li>
<li>Some people will conclude that ceiling prices will limit upside. That’s a misreading. Ceiling is based on “existing products”. ASP for future Gen HBM or DDR6 will increase.</li>
</ul>


Big ~20% beats. Consensus is ~20% too low for FY26 and FY27. The stock is trading at 7.1x FY27 EPS. 
The most important part of the call are the details on the long-term agreements that cover ~25% of volumes ~50%+ of revenues, with floor/ceiling pricing and margins above previous peaks.
Some people will conclude that ceiling prices will limit upside. That’s a misreading. Ceiling is based on “existing products”. ASP for future Gen HBM or DDR6 will increase.


Micron 3Q26 (May 26) Beat by 21%, Guidance Beat by 20%, Consensus ~20% Too Low. Stock Trading at 7x

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>Micron reported Q3 2026 revenues of $41.5 billion, up 74% sequentially and up 346% year over year, representing their fifth consecutive quarterly revenue record.</li>
<li>Consolidated gross margin was 84.9%, a company record, doubled YoY and up 10 pp sequentially, driven primarily by higher pricing as well as continuing strong execution and favorable mix. </li>
<li>FQ4 revenue forecasted at a record $50.0 billion, plus or minus $1.0 billion; gross margin to be approximately 86.0% and EPS to be a record $31.00 per share +/- $1.00.</li>
</ul>


Micron reported Q3 2026 revenues of $41.5 billion, up 74% sequentially and up 346% year over year, representing their fifth consecutive quarterly revenue record.
Consolidated gross margin was 84.9%, a company record, doubled YoY and up 10 pp sequentially, driven primarily by higher pricing as well as continuing strong execution and favorable mix. 
FQ4 revenue forecasted at a record $50.0 billion, plus or minus $1.0 billion; gross margin to be approximately 86.0% and EPS to be a record $31.00 per share +/- $1.00.


<ul>
<li>FQ3-26 demolished consensus on every metric — revenue US$41.5bn (+16% vs. street), EPS US$25.11 (+21%), gross margin 84.9% — all company records simultaneously.</li>
<li>Strategic Customer Agreements — 16 signed, US$100bn minimum revenue, US$22bn in deposits, take-or-pay structure — mark a permanent business model shift, not a contract win.</li>
<li>FQ4-26 guidance of US$50bn revenue and 86% gross margin — the strongest quarterly guide in semiconductor history. Reiterate FV of US$1,400/share (+33% UPSIDE Potential)</li>
</ul>


FQ3-26 demolished consensus on every metric — revenue US$41.5bn (+16% vs. street), EPS US$25.11 (+21%), gross margin 84.9% — all company records simultaneously.
Strategic Customer Agreements — 16 signed, US$100bn minimum revenue, US$22bn in deposits, take-or-pay structure — mark a permanent business model shift, not a contract win.
FQ4-26 guidance of US$50bn revenue and 86% gross margin — the strongest quarterly guide in semiconductor history. Reiterate FV of US$1,400/share (+33% UPSIDE Potential)


Micron Technology (MU US): 3QFY26 Blow-Out Beat Every Metric; SCA Framework Provides LT Visibility

United States

Micron Technology, Inc., through its subsidiaries, manufactures and markets dynamic random access memory chips (DRAMs), very fast static random access memory chips (SRAMs), Flash Memory, other semiconductor components, and memory modules.

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Micron Technology (MU US)