Wealthion · Wednesday, July 15, 2026
The expert expresses skepticism about the sustainability of extremely high profit margins in the semiconductor industry, particularly for companies like Micron, given the cyclical nature of the market. He warns about increasing competition from Chinese companies.
“But now we're at a situation where Micron has 85% gross margins. And investors are saying, well, how sustainable is an 85% gross margin in what is historically been a highly cyclical space?”
“And for those that weren't around in 1990, 2000, it peaked at 9 to 10 times sales. And I think that anybody investing in, uh, DRAM and, and N and N storage, like Western Digital or Seagate, uh, make sure you educate yourself on the Chinese companies that are in the same space.”