"Micron's transformation has been remarkable, with Cloud Memory revenue nearly doubling to $5.28B in Q1 FY26, showcasing a gross margin of 56%. This shift indicates a structurally different business model compared to five years ago."
"Western Digital's journey has been complex, transitioning to a pure-play HDD company after the Sandisk spinoff, with cloud revenue now representing 87% of its business mix, driven by high-capacity drive demand in AI data centers."
"A $1,000 investment in Micron in April 2016 would be worth approximately $29,919 today, reflecting nearly 10 times the S&P 500's return, despite significant volatility during the memory glut."
"Micron's investment case hinges on the ongoing AI infrastructure buildout, with analysts projecting a target price of $527.60 against a current price of $329.89, indicating strong growth potential."
Micron Technology and Western Digital have navigated a volatile technology cycle, influenced by AI. Micron has transformed its business, focusing on high-bandwidth memory, leading to significant revenue growth. In Q1 FY26, Micron's Cloud Memory revenue reached $5.28B with gross margins of 56%. Western Digital, after spinning off its Sandisk division, now operates as a pure-play HDD company, with cloud revenue making up 87% of its business. Micron's investment potential is strong, with analysts projecting significant price increases based on continued AI infrastructure demand.
Read at 24/7 Wall St.
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