Take it from a guy who bought MU on 3/18 (day of 03/26 earnings) at $461 only to watch it tank to the low 300s in a week and a half, MU is not a short term gamble. The company isn't trying to maximize short term profit, they are trying to win the memory war against Samsung, SK, and CXMT for the next 3 to 5 years.
If you listened to their guide last week, they guided about 25B capex for just the first half of the fiscal year with the second half even higher, so 50B plus for the year. Capex worry is one of the biggest reasons March dipped 30% post earnings (and back then the guide was only 25B for the whole year), but it is absolutely necessary because all of its competitors are increasing capacity and MU must do the same to keep up let alone capture more market share.
Also, if you listened to their q/a about buy back, they literally gave a cya generic answer that doesn't do any good to pump short term prices. The real reason is the CHIPS Act deal restricts big buy backs until December 9, and the CEO already said on Cramer they are committed to doing it. They will do a buy back but you need to be patient.
I get it, not everyone got in on 1/1/26. The time to gamble on MU was late last year and early this year when nobody believed, that window is closed and now it is time to be patient. MU is literally the most profitable company on the legal side of cocaine with 87% gross margin. The market may not be convinced after 1, 2, now 3 blowout earnings about the AI supercycle, because memory has always been boom and bust and everyone is building capacity at once. That is the real risk. But MU has 16 long term customer agreements locking in volume, and if it keeps having 4, 5, 6, and more blowout earnings, that durability will eventually convince the market. However, that requires patience. So at the end of the day, you need to ask yourself how much patience you have, if you have patience and doesn't have to worry about margin calls, then hold MU like people did with nvda in 2024. If you are "leveraged to the tits" you may want to deleverage and look elsewhere because no one knows if MU will rip to ATH next week or dump 30% like it did the last two post earnings cycles.
Positions:
1312 shares of MU
13 contracts of 1/27 $1,500 MU covered calls