Forget Micron: 1 Record-Breaking Cloud Stock to Buy After the Pullback

After Micron Technology's (NASDAQ:MU) stellar performance—soaring 760.37% in one year to a $1.12 trillion market cap on the back of the AI-driven memory cycle—analysts warn that memory margins at 74% are unsustainable. In contrast, Oracle (NYSE:ORCL) emerges as a more compelling investment opportunity after its recent pullback.

Recommendation Change

Analysts at 24/7 Wall St. recommend shifting from Micron to Oracle, citing the crowded trade at the top of the memory cycle and Oracle's more stable cloud-based growth.

Analyst Rationale

The memory business is inherently cyclical, and current high margins (74%) will likely decline as supply increases. Oracle, on the other hand, benefits from the secular growth in cloud computing, with long-term contracts and recurring revenue providing a more stable growth foundation.

Context

Oracle's stock has pulled back recently, creating a buying opportunity according to analysts. While Micron remains in the spotlight, its elevated valuation and cyclical risks make Oracle a safer long-term bet.

What to Make of It

While Micron may continue to rise in the short term, pivoting to Oracle represents a more prudent strategy for investors seeking sustainable growth in tech, especially as cloud momentum continues.