Cramer Buys Micron, Says Memory Stocks Are Disciplined
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- SanDisk, Seagate, Micron, and Western Digital posted YTD gains of 496%, 238%, 208%, and 171% respectively, powered by what SanDisk calls the "New Business Model" — long-term supply agreements, sector discipline, specialization, and massive buybacks
- Micron hit a $1 trillion market cap (up from $136B a year ago), while SanDisk reached $244B, Seagate $220B, and Western Digital $195B, with non-GAAP gross margins exploding — SanDisk from 22% to 78%, Micron from 30% to 85%, Western Digital from 40% to 51%
- SanDisk, Seagate, and Western Digital are returning capital through buybacks of $6B, $5B, and $4B respectively; only Micron doesn't buy back stock because it keeps building plants despite also having supply agreements
- Jim Cramer's Charitable Trust bought a new position in Micron this week because Cramer believes the supply discipline is real, though he notes he is "not comfortable" owning a stock that has already moved up this much and bought at a discount relative to Korean rivals Samsung and SK Hynix
- CoreWeave CEO Michael Intrator told Cramer in a recent interview that "there was no way we wouldn't overbuild," though Cramer argues the overbuild won't happen anytime soon given demand strength
- Anthropic reported quarterly revenue of over $11.5 billion, which Cramer cites as proof that demand for the data center buildout is "too stupendous to even think about halting"
Why it matters: Cramer is making a contrarian bet that four historically cyclical memory stocks have structurally changed through supply discipline, buybacks, and surging margins — making them the most indispensable AI data center plays besides Nvidia and AMD. The catch: CoreWeave's CEO warned overbuilding is inevitable, and these stocks still trade at low multiples because investors expect the earnings to collapse.
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