Micron Technology (MU US) US$948.80

Micron is Samsung’s closest US-listed peer, as one of only three companies globally, alongside Samsung and SK Hynix, that manufactures DRAM and NAND memory at scale. Both compete for the same AI-driven customers, including Nvidia and the hyperscalers, with demand for HBM, DDR5 and NAND driving earnings. Unlike broader semiconductor names such as Intel or Qualcomm, Micron is a pure-play memory business, making it the best listed proxy for Samsung’s highly profitable Device Solutions division, which is easier to buy than the Korean stocks for most of us.

The growth trajectory for Micron is extraordinary; consensus expects Micron to go from US$37.4bn revenue in FY2025 to US$250.6bn in FY2027, a 6.7x increase in just two years. The FY26 figure of $US130bn is already largely locked in given three quarters of actuals have been reported, with Q3 alone hitting US$41.5bn.

• While the AI Buildout continues Micron should flourish.

The news around Meta has a significant impact on the outlook for Micron and is the core reason we wouldn’t chase the stock into strength, but we believe value is emerging at current levels. To put the numbers into perspective, Micron may have become a ~US$1.1trn behemoth in just a few years, but with the company forecast to generate free cash flow of ~US$188bn in just FY26 and FY27, this market cap doesn’t feel too onerous.

Longer term, the extraordinary ~80% operating margins reflect the pricing power of HBM and high-density DRAM in a supply-constrained AI memory market. Those economics are likely to attract new competition, particularly from China and India, but for now Samsung remains one of the dominant players, well positioned to make hay while the sun shines.

• We like the risk/reward towards Micron after its almost 30% correction.