A Billionaire Investor Just Increased His Exposure to Memory Makers Sandisk and Micron. Should Investors Buy the Stocks?
Key takeaways
- SNDK MU AMZN There has been a lot of chatter in the market that investors need to be careful of memory stocks following their strong performance, despite the stocks in the sector still trading at cheap valuations.
- Micron is Tepper s second-largest position behind Amazon, and in Q1, he increased his shares by 11%.
- Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
SNDK MU AMZN There has been a lot of chatter in the market that investors need to be careful of memory stocks following their strong performance, despite the stocks in the sector still trading at cheap valuations. The reason for this is that historically, both the DRAM and NAND (flash) markets have been highly cyclical with very large boom and bust cycles.
However, it is certainly noteworthy that renowned billionaire investor David Tepper of Appaloosa Management increased his exposure to the sector in Q1, buying shares of both Sandisk (NASDAQ: SNDK) and Micron Technology (NASDAQ: MU). Micron is Tepper s second-largest position behind Amazon, and in Q1, he increased his shares by 11%. Meanwhile, Sandisk was a new position, representing around 3% of his portfolio. In fact, it was his only new position in the quarter.
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