Micron's stock dropped even though the company delivered what Jim Cramer described as a "great quarter." The decline reflects investor worries about first-quarter gross margin guidance and increased capital spending, which some fear could lead to excess memory supply and lower prices.
Cramer argues those concerns overlook the company's improving demand visibility. Micron now has 26 strategic customer agreements, up from 16 last quarter, and Cramer says the multi-year outlook is the best he's ever heard. He acknowledges near-term downside momentum but sees a catalyst in December when restrictions tied to U.S. government funding expire, allowing Micron to deploy cash toward a potentially significant buyback.
The source notes that Cramer's charitable trust is long Micron, and he advises against selling now ahead of the buyback. The broader market context includes rising Treasury yields and oil prices, which are pressuring equities, but the focus here is on Micron's specific situation.