CNBC Investing Club: Cramer’s Morning Take on Micron 10/1/26

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0:56Jim Cramer here to share a short preview of my take on the market from today's members-only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com slash morning take to sign up today. That's one word, morning take. Now, we're oversold. We're minus 5.1. I can go on and on about how much I like Micron. It was much stronger than it was even one month ago. They have contracts they'd never had before, which should give it a much higher price during his multiple. Yet the multiple's horrible. Now, I was saying, listen, it is going to go down.

1:37Is it down, should it be down this much? No, but it is. I mean, I can't just say, you know, it's like when I was talking about Kimberly Clark. I said, like, you know, it's at 95. I want to buy some. You said, why can't it go to 90? And the answer is, is that it can. Why can't the stock keep going down? Now, people don't know what to do with it. It was a great quarter. Yeah. The outlook for the next three years is the best that I've ever heard. But, you know, there's a momentum to the downside here that has to be respected. Of course. But I think, you know, the fundamental here is we're strong.

2:09Great revenue. Great earnings growth. Gross margins in the quarter. Fantastic. Yes, Q1, the gross margin guide was a little bit below, a little bit of a dip. But they explained that out. Yes, they did. And it's going to be the floor of the year, which is important. It's going to get better. Right. And you see the reason why I think that even though this looks horrible and can go down to 1 ,000 is that we see applied materials and we see KLA and we see the, you know, we see every one of these. Yeah, the semi-cap equipment stocks. I don't have the ASMLS. Yeah. And that's off Micron. Right. Land research is up a lot.

2:50That CapEx is going to increase now. But that's regarded as negative because they'd like to keep CapEx like SanDisk. No new drives coming in. No new supply. Right. But Sanjay says, listen, the country breaks down unless they have. Well, I guess the counterpoint is that when they're signing up these strategic customer agreements, now up to 26 versus 16 last quarter, that gives them visibility to continue to invest. They're getting cash deposits. Right. And remember, there's one number here. This is the only number the analysts are thinking about. Excuse me, December 9th. That's a date that they're allowed to buy back as much money as they want because that's the end of the lockup for what they got for the chip sack.

3:37And so you're looking at a situation where you're just waiting for the big money. And I don't know why you'd sell it now, knowing that in December 9th, you're going to, in December 10th, you're going to see, they have more cash than, some people say they have more cash, arguably, than Apple or NVIDIA. All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates, and may have been previously disseminated by Cramer on television, radio, internet, or another medium.

4:05No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce in a particular trading behavior, investment, or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com forward slash investingclubdisclaimer. It's the holiday season at House of Burrell, which means that it's the perfect moment to review some key rules. Rule number five, more style means more celebration. Number four, buy gifts, but remember to treat yourself too.

4:38Number three, there is no dress code, but always leave them talking. Number two, show off different outfits. No party remains unattended. And rule number one, have it all without spending it all. Happy holidays from House of Burl, Burlington.