Micron's Stock Soars on Strong AI-Driven Forecast, Fueling Chip Industry Rally
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Micron rises 13% as strong forecast impresses AI-hungry investors
The forecast drove up shares of other chip firms earlier in the day, but they pared gains after a media report said the U.S. Department of Justice was probing server maker Super Micro Computer. Super Micro, a big customer of chipmakers, resells and employs their products in its servers. Shares of
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Micron stock soars 16% thanks to AI-driven revenue that's expected to grow even more
Global chip stocks rallied after U.S.-based Micron's (MU) revenue forecast topped Wall Street's expectations. Micron shares were up over 18% in pre-market trading on Thursday morning, then stayed up around 17% after the market open. Micron's earnings report boosted global chipmakers' stocks,
[3]
The Ultimate Artificial Intelligence (AI) Stock to Buy Hand Over Fist Right Now (Hint: It's Not Nvidia)
This chip stock is not only cheaper than Nvidia, but it is set to grow at a faster pace than the AI pioneer as well. The proliferation of artificial intelligence (AI) has turned out to be a huge catalyst for the semiconductor industry, and that's not surprising as training and moving AI models
[4]
Micron rises 19% on AI-driven forecast, fuels chip stock rally
Micron Technology surged close to 19% on Thursday, leading a rally in chip stocks after its strong revenue forecast signaled robust demand for the hardware used to power generative AI technology. The company, whose high-bandwidth memory chips (HBM) are used in Nvidia's popular artificial
[5]
Why Micron Stock Is Soaring Today | The Motley Fool
Continued growth of demand for artificial intelligence hardware is proving a boon for this memory chip company. Shares of computer technology outfit Micron Technology (MU 13.19%) are up more than 15% midday Thursday following Wednesday evening's release of its fiscal fourth-quarter results. The
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Is Micron a Buy After Massive Earnings Topper?
It's easy to overlook the components that make our day-to-day technology function. For instance, I am writing this article on a program that isn't stored locally on my computer; it's in the cloud. The vast majority of software I use is like that. Online banking, payment processing, software, data
[7]
Micron Technology sees largest gain in nearly 13 years
Micron Technology Inc., the largest US maker of computer memory chips, gained the most in nearly 13 years after giving surprisingly strong sales and profit forecasts, helped by demand for artificial intelligence gear. Fiscal first-quarter revenue will be about $8.7 billion, the company said in a
[8]
Micron fuels chip stock rally as AI demand powers revenue forecast
(Reuters) - Micron Technology surged 15% on Thursday in premarket trading, leading a rally in chip stocks after its strong revenue forecast signaled robust demand for semiconductors used to power generative AI technology. The company, whose high-bandwidth memory chips (HBM) are used in Nvidia's
[9]
Micron's Post-Earnings Pop Leads Other Chip Stocks Higher
Shares of Micron were up over 12% in intraday trading, while shares of partner Nvidia (NVDA) also gained before reversing course. Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing Company (TSM) rose as well, boosting the tech-heavy Nasdaq. Nvidia, Micron, and
[10]
Tech Up After Micron Earnings -- Tech Roundup
Shares of technology companies rose after strong earnings for one key chip maker. Micron Technology shares surged, registering their biggest gain since 2011, after it reported that growing demand for AI-related data center applications offset weakness in market segments such as personal computers
[11]
Micron's Post-Earnings Pop Leads Nvidia and Other Chip Stocks Higher
Nvidia, Micron, and other chip companies have seen their revenue and stock prices climb amid a boom in demand for infrastructure to support artificial intelligence (AI). Micron CEO Sanjay Mehrotra said Wednesday the company's fiscal fourth-quarter sales nearly doubled from a year ago to $7.75
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Live news: Chipmaker Micron's shares jump as AI demand boosts outlook
Micron released a rosy sales outlook for the current quarter, signalling strong demand for semiconductors that power artificial intelligence software. The Idaho-based chipmaker said it expected profits between $1.46 and $1.60 a share on sales between $8.5bn and $8.9bn in its fiscal first quarter,
[13]
Micron forecasts upbeat first-quarter revenue on strong demand for memory chips
Micron Technology forecast first-quarter revenue above Wall Street estimates on Wednesday, betting on strong demand for its high bandwidth memory (HBM) chips used by the AI industry, sending the company's shares up 10% after the bell. The company is one of the only three providers of HBM chips
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Micron Technology's shares surge over 13% following an impressive revenue forecast, signaling robust demand for AI-related memory chips. The company's strong performance triggers a broader rally in the semiconductor industry.
Micron's Stellar Performance and Forecast
Micron Technology's stock surged by more than 13% following the release of its fiscal fourth-quarter results and an impressive first-quarter forecast
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. The company reported revenue of $7.75 billion for Q4, marking a 93% year-over-year increase and its best quarterly revenue growth in a decade2
. Micron's Q1 fiscal 2025 revenue guidance of $8.7 billion (±$200 million) significantly exceeded analyst expectations of around $8.3 billion3
.AI-Driven Demand Fuels Growth
The company's strong performance is largely attributed to the booming demand for high-bandwidth memory (HBM) chips used in AI applications. Micron CEO Sanjay Mehrotra highlighted that "robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory"
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. The HBM market is expected to grow from $4 billion in 2023 to $25 billion by 2025, with Micron already selling out its HBM capacity for the next year4
.Broader Impact on Semiconductor Industry
Micron's positive outlook triggered a rally across the semiconductor sector. Shares of other chip companies, including Nvidia, Intel, and Broadcom, saw gains of over 2%
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. The Philadelphia Semiconductor Index rose more than 4%, reflecting the industry-wide optimism5
.Diversified AI Opportunities
Beyond data centers, Micron is benefiting from AI adoption in multiple areas. The company is seeing increased demand for memory in AI-enabled PCs and smartphones. AI PCs are expected to require higher memory capacities, ranging from 16GB to 64GB of DRAM, compared to the current average of 12GB
4
. Similarly, AI smartphones are driving demand for 12GB to 16GB of DRAM, up from the current 8GB in flagship models4
.Related Stories
Improved Profitability and Margins
Micron's profitability has significantly improved, with the company swinging from a loss of $1.07 per share in the year-ago quarter to a profit of $1.18 per share in Q4 fiscal 2024
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. The company's adjusted gross margin for Q4 was 36.5%, a substantial improvement from the negative 9.1% in the previous year5
. Micron expects further margin improvement, forecasting an adjusted gross margin of about 39.5% for Q1 fiscal 20255
.Market Position and Valuation
Analysts view Micron as well-positioned in the memory chip market, benefiting from a broad and strong up-cycle in demand
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. The company's forward price-to-earnings ratio of 11 makes it an attractive investment compared to some peers in the AI chip space4
. However, investors should be aware of the potential for continued volatility in the stock price4
.References
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