Get Started with Growth Investing Now: Why Micron Technology, Zefiro Methane, and Bloom Energy Can Boost Your Portfolio

Micron Technology: With Strong Customer Confidence

The current correction at Micron Technology raises questions, as it appears to be more than just profit-taking. While the third quarter was strong, with revenue of USD 41.5 billion and a gross margin of 84.6%, the market nevertheless reacted with a significant drop in the share price. Looking at South Korea, the downturn coincided with positive industry signals from Samsung and SK Hynix, which posted double-digit gains following their record results. Investors may be recalling past times when storage media prices eventually plummeted.

The difference from the historical pattern lies in Micron's new business model. With 16 strategic customer agreements totaling approximately USD 100 billion, the company has laid the foundation for the future. These take-or-pay contracts, featuring minimum prices and purchase volumes and backed by USD 22 billion in customer funds, provide revenue certainty. While previous capacity expansions were based on speculative price forecasts, customers are now financing the expansion themselves. As a result, the gross margin is likely to remain above the level of previous cycles even during a downturn, which is a positive development.

Beyond the HBM boom, PCIe Gen 6 and enterprise SSDs open up further revenue potential. The validation with Microchip positions the company early in the evolving AI stack, while inference workloads and AI agents generate additional memory demand. Despite these significant improvements, the stock is valued at only 11 times its expected future earnings. Analysts are forecasting revenue of USD 240 billion for next year. The current price correction therefore appears to stem less from fundamental weakness than from exaggerated pessimism on the part of investors.

Zefiro Methane: Benefiting from Legacy Issues

Zefiro Methane specializes in decommissioning orphaned oil and gas wells. That may sound unspectacular at first, but videos are circulating online showing water burning from faucets due to methane. In the US, millions of abandoned wells lie dormant, from which methane escapes. This greenhouse gas has an even more harmful impact on the climate than CO₂. The US has responded by allocating USD 4.7 billion for remediation programs through the Infrastructure Investment and Jobs Act (IIJA). Zefiro operates here as a specialized service provider with its own equipment and many years of experience. Expansion is underway. Following the acquisition of five additional drilling rigs, the company now operates in 13 US states and is thus able to benefit from the growing number of public and private tenders.

The new management has brought about a turnaround. In the first 9 months of fiscal year 2025/26, revenue rose by 35.8% to USD 33.19 million, while adjusted EBITDA was clearly positive at USD 4.25 million. Operating cash flow also turned positive. Management, led by CEO Catherine Flax, who has been in office since June 2025, is focused on profitable growth. The recent agreement with the Well Done Foundation secures Zefiro access to projects in additional states. An initial contract for 10 drill holes at the Deep Fork National Wildlife Refuge in Oklahoma is already underway. At the same time, the company has secured new major clients from the energy sector, including three publicly traded corporations with a combined market capitalization of over USD 140 billion.

Analysts at GBC see significant potential. The price target of USD 1.50 or CAD 2.12 per share is based on a DCF model and assumes that Zefiro will be able to fully utilize its expanded capacity and stabilize its operating margin. For fiscal year 2026/27, they expect revenue of USD 57.92 million and EBITDA of USD 10.02 million, up from USD 3.73 million in the current year. Additional revenue streams could come from the carbon credit business, which is set to resume in the fall of 2026 following a methodology review and methane gas measurements. Zefiro remains a project-driven company that continues to advance its growth plans, including through its own facility for training new staff. The share is currently trading at around CAD 0.60.

Bloom Energy: Riding the AI Hype

Bloom Energy's quarterly results are more than solid. Revenue has surpassed the billion mark for the first time and now stands at USD 1.06 billion. That represents a 166% increase over the previous year. The operating margin has more than tripled to 22.5%. Management has since revised its full-year forecast upward twice. For the current year, revenue is expected to range between USD 3.9 billion and USD 4.2 billion. The operating profit forecast has been raised to USD 800 million to USD 900 million.

What stands out in particular is the intelligent use of capital. Brookfield has increased its financing commitment for Bloom projects from USD 5 billion to USD 25 billion in just 9 months. In addition, other partners such as Oaktree and Morgan Stanley are contributing an additional USD 2.6 billion. This structure takes pressure off the company's own balance sheet and enables rapid scaling without the company having to make upfront investments itself. In effect, the company acts as an intermediary between investors and the operators of AI infrastructure. Nearly all major US hyperscalers and over a dozen neo-clouds have chosen Bloom's solutions for their AI data centers. Its market share in the data center segment is estimated at over 90%.

Despite these impressive figures, valuation remains a challenge. With an extremely high price-to-earnings (P/E) ratio for 2026, the stock cannot be considered a bargain. The recent correction of nearly 50% has created some breathing room, but the risk of a further downturn remains. The company's reliance on a small number of major customers poses a risk, with two partners accounting for approximately 65% of first-half revenue. In addition, the supply chain for critical materials remains a source of uncertainty. Investors considering the stock should be prepared for elevated volatility.

In the current interest rate and inflation environment, growth investing offers a compelling alternative to currency devaluation. However, one must choose wisely. Micron Technology stands out with a transformed business model that cushions price cycles through long-term customer contracts. As a specialized service provider, Zefiro Methane occupies a profitable niche in the multi-billion-dollar US remediation market for orphaned and abandoned wells. Bloom Energy, on the other hand, impresses with high growth rates in the AI sector but remains a high-risk bet due to its extreme valuation and customer concentration.