Forget Micron: 1 Record-Breaking Cloud Powerhouse to Buy Hand Over Fist After the Pullback

The post Forget Micron: 1 Record-Breaking Cloud Powerhouse to Buy Hand Over Fist After the Pullback appeared first on 24/7 Wall St..

Micron Technology (NASDAQ:MU) is the chip stock dominating every feed after its memory business rode the AI cycle to a $1.12 trillion market cap and a 760.37% one-year run.

But here’s what you should actually be watching.

The Crowded Trade at the Top of the Cycle

Memory margins do not stay at 74% forever. Micron just reported fiscal Q2 2026 revenue of $23.86 billion, up 196.3% YoY, with GAAP gross margin of 74.4% against a multi-year base where memory margins regularly compress below 30% in downcycles. Capex hit $15.86 billion in fiscal 2025 and is still climbing. CEO Sanjay Mehrotra himself flagged “dependence on sustained AI demand trajectory” as a key risk.

That is a textbook peak-cycle setup wearing AI clothes. The stock is up 249.09% year to date. Reddit’s wallstreetbets has been flooded with posts like “+6,476.76% gain on MU LEAPS, should I sell?” When LEAPS screenshots dominate the feed, the crowd has already arrived. You are the exit liquidity. Prediction markets confirm the fatigue: traders price only a 43% probability of MU closing June above $1,000.

The Redirect: A Record-Breaking Cloud Powerhouse on Sale

Oracle (NYSE:ORCL) just delivered a record fiscal Q4 on June 10, 2026, then sold off 22.1% in a week to $184.10. That is the contrarian’s window.

Three reasons retirement-focused investors should pay attention while the herd is distracted:

1. Backlog visibility memory will never match. Oracle’s Remaining Performance Obligations hit $638 billion in Q4, up 363% YoY, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Memory ships and reprices quarterly. Oracle has years of revenue already under contract. Safra Catz called the trajectory “an astonishing quarter” back in September, when RPO was a mere $455 billion.

2. Structural shift, recurring revenue. Cloud is now 52% of total revenue versus 43% a year ago. Cloud Infrastructure revenue grew 93% YoY to $5.787 billion. Multicloud AI Database grew 404% in Q4. Oracle monetizes the same AI buildout lifting Micron, just through subscriptions instead of spot pricing.

3. Guidance raised into the pullback. FY27 non-GAAP EPS guidance was raised to $8.05, representing 18% growth, with FY27 revenue confirmed at $90 billion. Q1 FY27 cloud revenue growth is guided at 58%-64%. The stock has been re-rated lower while forward estimates moved higher. That is a classic contrarian entry.

The Honest Risks, and Why They Don’t Break the Thesis

Free cash flow ran to negative $23.686 billion for FY26 on $55.663 billion of capex. Oracle plans to raise roughly $40 billion in FY27 through debt and equity. That is the cost of building 211+ live and planned cloud regions and 72 Multicloud datacenters embedded inside Amazon, Google, and Microsoft. Customers are funding much of it directly. The capacity, per co-CEO Clay Magouyrk, is “all already contracted for at a very profitable rate.”

And while the infrastructure compounds, Oracle declared a $0.50 quarterly dividend on June 10, payable July 24. Income, plus a re-rating opportunity. Exactly what a retirement portfolio is built around.

Put Oracle on the watchlist while the headlines chase Micron at $995.87.

The post Forget Micron: 1 Record-Breaking Cloud Powerhouse to Buy Hand Over Fist After the Pullback appeared first on 24/7 Wall St..