u/qualified-

NBIS just announced plans to raise $4.5B (convertible notes) to fund more AI/data center infrastructure. With their NVIDIA partnership targeting 5+ GW of NVIDIA systems by 2030, it seems like another bullish signal for Micron.

More NVIDIA systems = more HBM4 + server DRAM, and Micron is already producing HBM4.

Obviously this isn’t a direct $MU order, but how much do you guys think these neocloud buildouts (Nebius, CoreWeave, etc.) actually move the needle for Micron?

Could memory demand still be underestimated for 2027-28 from the expansion of these projects?

Source: https://www.reuters.com/technology/nebius-plans-45-billion-convertible-debt-sale-fund-data-centers-ai-platform-2026-08-19/

anyone that works within the computer engineering or science space please drop some knowledge because I seem to have a limited understanding but I have done some research so far.

It seems that data centers don’t just buy memory once and use it forever. What I have learned is that there are two sides to this.

1. memory can fail (small part - barely even worth mentioning)

2. ai accelerators are moving from HBM3 → HBM3E → HBM4 while also using more memory per accelerator. Every new generation of GPUs and every data center expansion potentially creates another round of HBM/DRAM purchases.

so my question is - even after the initial AI buildout, could constant GPU refreshes and increasing memory per chip make data center memory demand much more recurring than previous cycles?

disclaimer: OBVIOUSLY memory is still cyclical and supply will catch up eventually (normalizing these margins), but I’m curious if this could justify a structurally higher multiple for MU long term.

Thoughts?

First I want to establish I am not a bull or a bear. Just someone trying to understand the market.

Micron trades at roughly 4x foward EBITDA (current 17x) and 5x forward earnings (current 18x). The usual explanation is that memory is a highly cyclical business, so investors hesitate to assign Micron a premium multiple even when margins and cash flow are strong.

But what if Micron used some of its 400B of projected free cash flow through 2028 to expand beyond memory? It could invest in adjacent markets and put into r&d for such as robotics, edge computing, or other areas where its existing technology and expertise would give it an advantage. Chips and memory obviously won’t be the only industries that benefit from AI.

The Magnificent Seven receive higher multiples partly because they are established companies with diversified revenue streams. Think Amazon, Apple, Meta, and Microsoft. If Micron could create more durable revenue outside memory and become less dependent on the semiconductor cycle, could it eventually justify something closer to a 20x earnings multiple? (I am not trying to be naïve I obviously understand that means a 5T mc but you get the point)

Obviously, spending money outside its core business doesn’t automatically deserve a rerating, and moving into unrelated industries could destroy value. Still, would you rather see Micron use its cash to diversify, double down on memory, make acquisitions, or return more capital to shareholders?

Do you guys not remeber deepseek? China always tries to compete, markets react heavily and then we find out the product was a fraud. I mean Micron and Sandisk have not only been around for decades longer but have huge balance sheets to extrapolate their markets and trump to get in the middle of it. Everyone relax.

i’ve been thinking about how the ai trade has evolved. first it was nvidia and ai chips, then memory companies like micron, then data centers. now the question is who’s going to power all of it.
i know nuscale is still pre-revenue and there’s obviously a lot of execution risk, but at around $10/share i feel like the risk/reward is pretty attractive if smr adoption actually takes off. curious what everyone else thinks or if i’m missing something.