Micron Is Your BIGGEST Buy The Dip Opportunity - Buy Now Or Regret Forever

This is my first ever face cam video and honestly, I am nervous and excited at the same time. Even though this channel has grown to over 400k subscribers, I have always stayed behind the scenes. I am more comfortable researching stocks, studying data, and preparing content rather than being on camera. I am an introverted person, so this is a big step for me. You guys have supported this channel for years even without knowing the person making these videos. That trust means a lot to me. And now I want to build an even stronger connection with you. 400k subscribers and like ratio of 97.6% is huge trust factor for me, which I will never break. My name is Musarat. I am a former university teacher, now a successful entrepreneur and investor with over 14 years of experience. I am not a native English speaker and I hope you will focus on the content and excuse my accent. My goal will always stay the same: honest research, clear analysis, and long-term thinking. So, here's the plan. I will start by posting two to three face cam videos every week and as I get more comfortable, I will move toward posting regular face cam videos to connect more with you and cover latest trends and updates about stocks. Enough for the intro, now let's get to the main part. In this video, I will discuss two stocks that I believe are incredibly attractive investment opportunities right now. First one is Micron. Micron's stock has fallen over the 35% from its all-time highs and now everyone is asking the same question. Is this finally the right time to buy the dip or should we wait for any one bigger drop? I have gone through Micron's earnings, management commentary, supply agreements, analyst estimates, what its two biggest competitors are saying, and here is what I found. In simple words, this is one of the widest gaps I have ever seen between stock price and operating performance. Let's start with the valuation. As per Seeking Alpha, 37 Wall Street analysts currently estimate Micron's earnings to increase from 73 per share this year to 154 in 2027 and to 166 in 2028. With the stock trading near 900, the 2027 estimates gives Micron a forward PE of roughly 5 and 1/2. This is an extremely low multiple for a company sitting directly inside one of the biggest bottlenecks of the AI build-out. Now, look at the actual business. Last quarter, Micron generated 41.5 billion in revenue, up 74% from the previous quarter and 346% year-over-year. Adjusted earnings reached 25.11 per share. Gross margins hit 84.9% and adjusted cash flow reached 18.3 billion. And management expects the next quarter to be even stronger, approximately 50 billion in revenue and 86% gross margin and adjusted earnings of 31 per share. This is not simply one quarter spike. Micron says memory demand continues to significantly exceed industry supply with tight condition expected beyond 2027. During the earnings call, JP Morgan asked whether HBM volume and pricing were already booked for 2027. Micron's Chief Business Officer answered that HBM demand in both 2027 and 2028 is well above our ability to supply. The company is also changing the traditional boom and bust memory model. Micron has signed 16 strategic customer agreements. 14 of them represent roughly 100 billion in minimum contracted revenue, while customers have committed another 22 billion through deposits and financial commitments. These are multi-year take-or-pay arrangements with volume commitments and in many cases pricing floors. And Micron's competitors are confirming the same demand picture. SK Hynix CEO warned that 2027 could bring the most severe supply crunch in the semiconductor industry's history as soaring demand for advanced memory chips strain production capacity and leaves manufacturers struggling to meet the expanding needs of AI infrastructure. Samsung is sending the same signal. It expects its HBM sales to more than triple in 2026 and is expanding its HBM 4 production capacity. When all three major memory producers are spending aggressively while still describing limited supply, investors should pay attention. Of course, this is not risk-free. Memory remains cyclical. AI spending could slow. Competitors could add capacity faster than expected and pricing could eventually weaken. But today, Micron's stock is falling while revenue, margins, contracted demand, and free cash flow are moving sharply higher. This is why I believe this pullback is a high-conviction long-term buying opportunity, not because the stock cannot fall further, but because the fundamentals currently look far stronger than the price action suggests. The second stock I am covering today is another blue-chip bargain. I believe Microsoft is incredibly cheap at current price. I have reviewed Microsoft's latest earnings, Azure demand, Copilot adoption, capital spending, backlog, valuation, what competing cloud providers are reporting, and here is what I found. Microsoft is currently trading near 400 per share with a price-to-earnings ratio of approximately 23.5 times. This is a significant discount for Microsoft's historic valuation despite the company continuing to deliver double-digit revenue and earnings growth. In the latest quarter, Microsoft generated 82.9 billion in revenue, up 18% year-over-year. Operating income increased 20% to 38.4 billion while earnings per share reached 4.27 per share, rising 23%. This is not a struggling company. It is a company growing revenue, operating profit, and earnings while its valuation is falling. The biggest part of the Microsoft investment thesis is Azure Cloud. Azure Cloud revenue grew 40% last quarter, beating expectations. Management is also guiding for another 39 to 40% growth next quarter. But, here is the most important detail. Azure is not slowing because customer do not want its services. Microsoft says customer demand continues to exceed its available computing capacity. That means Microsoft currently has more potential business than it can physically serve. The company added another gigawatt of data center capacity during the quarter and remain on track to double its total infrastructure footprint within 2 years. Microsoft plans to invest roughly $190 billion in capital expenditure during 2026, including approximately $25 billion caused by the higher component prices. That spending is putting pressure on near-term free cash flow and cloud margins. Microsoft Cloud's gross margin declined to 66% as the company invested heavily in GPUs, CPUs, storage, data centers, and growing AI usage. However, management still expects full-year operating margins to increase by approximately 1 percentage point. So, Microsoft is spending aggressively without sacrificing company-wide profitability. The backlog is also equally important. Microsoft's commercial remaining performance obligation reached $627 billion, up 99% year-over- year. Roughly 25% of that backlog should become revenue during the next 12 months. While the portion scheduled beyond 1 year grew 138%. That provides Microsoft with enormous visibility into future cloud revenue. However, there is one major risk. Part of this backlog includes commitments from OpenAI. Microsoft reported that bookings declined when OpenAI-related Azure commitments were included. Although the bookings still grew when OpenAI was excluded. Investors, therefore, need to monitor OpenAI's financing spending commitments and ability to convert its AI growth into sustainable revenue. But, Microsoft is no longer dependent on one AI partner. Azure offers models from OpenAI, Anthropic, and open-source developers. More than 10,000 customers have already used multiple models through Microsoft's Foundry platform. That gives Microsoft the ability to benefit regardless of which individual AI model wins. Microsoft 365 is also becoming stronger, not obsolete. Commercial cloud revenue grew 19%. Paid Microsoft 365 seats increased 6%, and Copilot now has more than 20 million paid seats. Employees may use AI to write emails, analyze information, create presentations, and generate reports, but they are still doing that work inside Outlook, Excel, PowerPoint, Teams, and Microsoft's broader enterprise ecosystem. The competition confirms that AI cloud demand is real. Google Cloud revenue recently surged 63% to more than 20 billion, while its backlog climbed about 460 billion. That suggests the entire AI infrastructure market is expanding rapidly, rather than Microsoft simply losing market share. Based on the analysts' estimates, Microsoft's earnings are expected to grow approximately 23% in fiscal 2026, 15% in 2027, and another 16% in 2028. That means investors are potentially getting above-average earnings growth and a below-average valuation. Right now, Microsoft share price is falling while Azure demand, Copilot adoption, cloud backlog, revenue, operating income, and earnings continue moving higher. That is why I believe this pullback represents an attractive long-term buying opportunity, not because Microsoft cannot fall further, but because the current price appears to reflect far more fear than the company's operating results justify. That's all, folks. Hope you enjoyed the video. Thank you.