Micron's Strong Forecast Driven by AI-Related Memory Chip Demand

Micron Gives Strong Forecast, Lifted by AI Computing Demand

Micron Technology Inc., the largest US maker of computer memory chips, gave an upbeat forecast for the current quarter, helped by demand for artificial intelligence equipment. Fiscal fourth-quarter revenue will be roughly $10.7 billion, the company said in a statement Wednesday. That was well ahead of the $9.89 billion average analyst estimate, sending the shares up in late trading. Micron is seeing increasing demand for components like its high-bandwidth memory, which are used in machines that develop and run AI tools. The company expects continued growth from that market as such software becomes more complex, requiring bigger amounts of memory. The company is also starting to recover from narrower profit margins in the previous quarter. (Source: Bloomberg)

Micron forecasts quarterly revenue above estimates on AI-driven memory chip demand

June 25 (Reuters) - Micron Technology (MU.O), opens new tab forecast fourth-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its memory chips used for artificial intelligence hardware in data centers. Shares of the memory chipmaker rose 6.7% in extended trading. Micron is positioned as a key player in the AI memory market. Its high-bandwidth memory chips are used in some of the most advanced artificial intelligence systems, including data centers. Many cloud companies, such as Google, have reaffirmed their investments this year to expand AI infrastructure, underscoring strong demand for AI-related products. Micron said it expects revenue of $10.7 billion, plus or minus $300 million, in the fourth quarter, compared with analysts' average estimate of $9.88 billion, according to data compiled by LSEG. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

Micron shares rise on bets of strong demand for AI-related memory chips

June 26 (Reuters) - Micron Technology (MU.O), opens new tab shares rose 2% in premarket trading on Thursday, after a robust forecast from the chipmaker for fourth-quarter revenue on booming demand for its memory chips that power AI data centers. The company saw a nearly 50% jump in sales of high-bandwidth memory (HBM) chips for the third quarter compared to the previous three months. Micron is one of the providers of HBM chips besides South Korea's SK Hynix (000660.KS), opens new tab and Samsung (005930.KS), opens new tab "AI servers are giving Micron an over-caffeinated growth spurt... (and) Micron is the only kid on the block shipping HBM3E at scale," said Michael Ashley Schulman, partner at Running Point Capital Advisors. Micron said it will continue to invest in HBM chips which reflects the growing demand from AI chip front runners - Nvidia (NVDA.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab, who are customers of the company. J.P.Morgan said it expects Micron's HBM chip sales to accelerate, hitting a $8 billion annualized revenue run rate over the next one to two quarters. Micron's Chief Business Officer Sumit Sadana told Reuters the extent of tariff-related pull-ins from customers in the third quarter was fairly modest. "Strength in AI set to be a material contributor to results, we see a scenario where the narrative isn't all about tariff impacts," Morgan Stanley analysts said in a note. Following the results, at least 10 brokerages raised their price targets on the stock. Shares of peers AMD, Nvidia and Marvell Technology (MRVL.O), opens new tab rose between 1-2% in premarket trading. Micron is up 51.2%, while AMD and Nvidia have gained about 19% and 15%, respectively, so far this year. Micron has a 12-month forward price-to-earnings ratio of 11.85, compared to SK Hynix's 6.48 and Samsung's 11.57. Reporting by Akriti Shah in Bengaluru; Editing by Shailesh Kuber Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Business

Micron delivered an earnings and revenue beat. Here's how Wall Street reacted

Micron Technology easily cleared earnings expectations, signaling the chipmaker's momentum is unlikely to stop anytime soon. In fiscal third quarter, the semiconductor manufacturer earned an adjusted $1.91 per share on $9.3 billion in revenue. That exceeded the $1.60 cents per share and revenue of $8.87 billion that analysts polled by LSEG had penciled in. The company also guided for revenue in its current period of about $10.7 billion, roughly 38% higher from $7.75 billion a year earlier. Analysts had estimated revenue of $9.9 billion. Shares were up 2% in the premarket following the results. The chipmaker has been on a tear lately, rallying 36% over the past month. That gain outpaces Nvidia's 17% advance over that time. Many analysts are betting the momentum will continue, at least for now. Several of those covering the stock increased their price targets. To be sure, some still rate the stock as neutral or equivalent. Here's what analysts at some of the biggest shops on Wall Street had to say on the report. Morgan Stanley keeps equal weight rating, raises price target to $135 per share from $98 Analyst Joseph Moore's new target implies about 6% upside from Wednesday's close. "The big inflections are behind us, but still expecting continued improvements in 2025 on the back of AI demand strength ... We don't think pull forward concerns or May quarter pricing declines should dent enthusiasm for the story here -- MU remains an agnostic AI winner & conventional DRAM is still getting better. But we continue to see more compelling options in semis for those drivers." Barclays reiterates overweight rating, hikes price target to $140 from $95 Barclays' forecast corresponds to upside of around 10%. "HBM and eSSD are driving secular growth across DRAM and NAND, respectively, but core end markets in PC and Smartphone are taking longer to recover and are most subject to the broadening of tariffs." Bank of America keeps neutral rating but lifts target price to $140 from $84 "Overall, we raise CY25-27E sales by 4-6% and EPS by 13-23%. However, we reiterate Neutral as NAND pricing remains uncertain and startup cost headwinds to GMs remain into CY26, overall limiting visibility beyond the n-t." Citi maintains buy rating and lifts target price to $150 from $130 Analyst Christopher Danely's forecast is 18% above Micron's Wednesday closing price. "Yesterday after the close, Micron reported upside to results and guidance driven by better-than-expected pricing and shipments as we previewed. We would note more upside was from NAND vs DRAM which could explain why the stock traded down after the call. We raise estimates and price target from $130 to $150 and reiterate our Buy rating on Micron." UBS keeps buy rating and raises price target to $155 per share from $120 Analyst Timothy Arcuri's price target was approximately 22% higher than Micron's closing price on Wednesday. "MU delivered against the only real investor expectations we heard into the call -- HBM revenue and gross margin, both of which were in-line to a little better than bogeys. Pullins may be helping boost non-AI demand somewhat (particularly on the NAND side), but we think investors are too concerned about this because HBM is finally becoming a big enough part of the DRAM business (~6-7% of DRAM bits but ~19-20% of allocated capacity based on our estimates) that it is 'crowding out' the traditional memory market and creating supply constraints for MU." JPMorgan reiterates overweight rating, raises price target to $165 from $135 JPMorgan's new target equates to 30% upside. "Overall, we believe the fundamental setup remains favorable in the near term, and we anticipate overall Q/Q ASP improvements and bit shipments in the 2H of the year, albeit potentially a bit more muted by potential tariff headwinds and sluggish NAND supply/demand trends. We are increasing our forward estimates, initiating our FY26 estimates, and raising our price target to $165." Wells Fargo maintains overweight rating and lifts price target to $170 from $150 Wells Fargo's target calls for 34% upside. "HBM momentum (up ~50% q/q; > $1.5B) and overall con't data center strength, coupled w/ tightening inventory levels (DRAM bit constrained into 1HFY26), should leave investors focused on con't upside (path to 50%+ GM% in FY26?)."

This chip stock that's been hotter than Nvidia is set to report earnings. Here's what analysts expect

Micron Technology is scheduled to post its fiscal third-quarter earnings Wednesday after the bell, and some analysts are taking a rather optimistic view. The semiconductor manufacturing company is expected to earn $1.60 per share on $8.872 billion in revenue, according to analysts surveyed by LSEG. That would mark a more than 158% gain in earnings per share compared to the prior-year period. The revenue estimate points to a more than 30% jump year over year. The U.S.-based company's latest results come as shares have soared more than 35% in the past month and more than 50% in 2025 -- meaningfully outpacing Nvidia's gains over both periods. Analysts are betting those gains will continue. Most analysts are also bullish on the stock, with 34 of 41 rating the stock a buy or strong buy, LSEG data shows. MU NVDA 1M mountain MU vs. NVDA, 1-month Analysts pointed to Micron's strong performance in the high bandwidth memory (HBM) market, where the company has been able to capitalize on rising artificial intelligence demand. They expect HBM growth to continue. Here's what analysts had to say about Micron heading into its quarterly results. Wedbush Securities: Outperform rating and $150 price target The firm's target calls for more than 17% upside from Tuesday's close. "In the current quarter, MU guided for better shipments, albeit with pricing and margins expected to dip given 1) ASP expectations and 2) a shift in mix towards more consumer oriented parts (with retail/channel demand having driven the better bit expectations). However, the shifting dynamics in CQ2, in our view, suggests that mix and ASPs likely trended better than MU's FQ3 guidance had anticipated (both in DRAM and NAND). As such, we are lifting our Q2 modeled expectations towards the high end of MU's guided range. ... Moreover, we view growing HBM requirements as not just positive for MU's numbers, but also ultimately positive for industry dynamics as capex and clean room space are reallocated to support HBM growth, limiting the likelihood of oversupply of standard NAND/DRAM and also increasing the probability production of more standard parts trails demand creating a more positive pricing/margin cycle vs. what is embedded in our expectations." Stifel: Buy rating and $130 price target The firm's target signals 2% upside. "We expect upside to ours/cons. F3Q estimates, with bit shipments for the May-ending quarter likely helped by some pull-forward of PC/phone production (and memory chips) while these devices remain exempt from higher reciprocal tariffs. Although the market has concerns about what's been pulled forward, recent checks suggest OEM inventory remains reasonable, broader DRAM demand (incl. high-capacity DRAM and LPDDR5X) is strong, and that pricing is expected to increase into the September month. ... We continue to view MU as a share-gainer in HBM, and expect 12-Hi HBM3E to be a more significant driver over the ensuing quarters enroute to the company meeting/exceeding its targeted 20%+ share exiting the CY." Wolfe Research: Outperform rating and $150 price target "We update our industry estimates to reflect improved pricing dynamics in Q2 for both DRAM and NAND. We do however think some of the Q2 improvement has been driven by demand pulled forward from 2H, as customers attempted to buy ahead of possible price increases (similar to last yr), and tariffs (with the most concerns from the PC segment). ... The main factor underpinning our bullish view on MU has been HBM, for which trends remain strong. Our estimates assume MU achieves their 20% share in HBM by year-end, and we expect that they can maintain that share regardless of whether Samsung begins to participate in leading edge HBM. ... Net, we're encouraged by NT pricing trends and HBM secular growth, balanced by the risk of a tepid cyclical recovery, similar to last year. But memory remains cyclical and bit supply growth has been limited - so if the recovery again stalls in 2H we think investors will simply turn the focus to CY26/27, which likely limits downside for stock." Morgan Stanley: Equal weight rating and $98 price target The firm's target implies more than 23% downside. "Micron may end up guiding more conservatively than we expect, but we expect them to eventually report numbers at least in the rang of our estimates. As conditions in DRAM continue to improve and Micron's AI story is accelerating. In NAND, which we continue to model conservatively, is also showing signs of upside driven by eSSD pull through from AI. ... All forms of MU's AI business are accelerating, we model HBM growth of 54% in August to $2bn and continued growth from there."

Micron reports earnings, revenue beat and issues strong forecast

Micron shares rose in extended trading on Wednesday after the chipmaker reported better-than-expected earnings and revenue and issued a forecast that also topped analysts' estimates. Here's how the company did in comparison with the LSEG consensus: Micron said revenue in the current period, its fiscal fourth quarter, will be about $10.7 billion, up 38% from $7.75 billion a year earlier and ahead of the $9.9 billion average analyst estimate, according to LSEG. Data center revenue more than doubled in the third quarter, Micron said, as total sales jumped 37% from $6.81 billion a year ago. The company has seen soaring demand in the high bandwidth memory, or HBM, market due to the artificial intelligence boom.

Micron stock jumps after Q3 beat and upbeat AI memory forecast

After Wednesday's bell, Micron Technology delivered record Q3 revenue and issued a bullish forecast for the current quarter, sending its shares higher in after-hours trading. Ahead of Thursday's bell, shares are up 2% -- and that's on top of the 50%+ they've already gained year to date. The year-over-year growth is eye-popping: earnings jumped 208%, and revenue surged 37%, driven by booming demand for the special memory chips powering artificial intelligence applications large and small. Revenue from high-bandwidth memory, known as HBM and crucial for AI workloads, grew nearly 50% from last quarter's figures. Data center revenue more than doubled. CEO Sanjay Mehrotra touted the company's leadership in HBM and DRAM ("dynamic random access memory," or volatile memory that powers off when the overall unit is powered off), as well as record performance in its consumer-oriented segments. Micron has also begun shipping HBM4, its next-generation high-performance memory for AI data centers. For Q4, the company expects revenue of nearly $11 billion and adjusted EPS of $2.50. If they get there, such growth would represent a 40% gain over last year's sales and a 31% rise from this quarter's. It's heady stuff, but given the ongoing AI and related data-center boom, Micron's making it look well within reason. So it's no wonder the stock is emerging as a Wall Street darling, especially amid the much more uncertain macro picture that has B2B and consumer demand looking volatile in almost every area but AI. Semiconductor stocks like Micron may be famously subject to steep boom-and-bust cycles, but there's no question which part of the cycle we're in now: Boom goes the dynamite.

Micron generates massive profits as AI fuels demand for high-bandwidth memory

Micron generates massive profits as AI fuels demand for high-bandwidth memory Micron Technology Inc. delivered solid profits today thanks to rampant demand for artificial intelligence chips that drove record quarterly revenue, but it wasn't enough to move the needle in its stock price, which remained flat after-hours. The company reported earnings before certain costs such as stock compensation of $1.91 per share, trouncing the analysts' forecast of $1.60. Revenue for the period came to $9.3 billion, up 37% from a year ago and well ahead of the $8.9 billion analyst target. It was an impressive performance by the chipmaker, which delivered a net profit of $1.88 billion in the quarter, up from just $332 million in the year-ago quarter. Micron Chief Executive Sanjay Mehrotra (pictured) said the company is well on track to deliver record fiscal revenue and a bumper profit for the full year. This bodes well for the future too, he stressed, as it will allow the company to make "disciplined investments to build our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand." According to the CEO, the company's record-breaking revenue was driven by "all-time-high sales" of dynamic random-access memory chips in the quarter. In particular, it saw an almost 50% sequential increase in sales of its high-bandwidth memory chips. The company is a market leader in HBM chips that bundle numerous DRAM modules closely connected to Nvidia Corp.'s graphics processing units. They have become vital for AI computing, providing the memory those processors need to perform their computations efficiently. Micron has been aided by the struggles of its biggest rival in the memory chip business, Samsung Electronics Co. Ltd., which has not yet been able to mass-produce HBM chips, resulting in demand for the chips outstripping supply. "Micron isn't the star of AI the way Nvidia is, but high-bandwidth memory chips are the gold standard for powering AI, and the demand for them is insatiable," Rational Equity Armor Fund Portfolio Manager Joe Tigay told Bloomberg. The chipmaker said revenue from its data center business segment more than doubled in the quarter from the previous year, while "consumer-oriented end markets" also had a boost, leading to "strong sequential growth." Looking to the current quarter, Micron is forecasting earnings of $2.35 to $2.65 per share for the current quarter, the midpoint ahead of the Street's forecast of $2.47. It also forecast revenue of $10.4 billion to $11 billion, surpassing analysts' $9.9 billion target. The company is also likely to become even more profitable, for officials said they're expecting an adjusted gross margin of 42% in the current quarter, up from 39% in the period just gone. Micron's stock initially gained more than 3% after the report was published, only for it to retreat. But it has been one of the top five performers in the S&P 500 over the last two months, roughly doubling since April. The intense spending on AI has sent investors scrambling to find beneficiaries of that trend beyond the likes of Nvidia. In the year to date, Micron's shares are up 51%, while the Nasdaq has gained 3.4%.

Micron Stock Rises on Record Revenue, Upbeat Outlook on Growing AI Demand

Earlier this month, Micron said it would spend $200 billion to increase its U.S. semiconductor production and research and development. Micron Technology (MU) shares advanced in premarket trading Thursday, a day after the memory chip manufacturer reported better-than-expected fiscal third-quarter results. The company reported record quarterly revenue of $9.30 billion, with data center sales more than doubling from a year ago. Sales and profit handily topped analysts' estimates, and the company's fourth-quarter projections also were higher than consensus projections. Micron is among several chipmakers whose sales have skyrocketed amid booming artificial intelligence demand. Earlier this month, the company said it would invest $200 billion to boost its U.S. semiconductor production and enhance its research and development (R&D) programs. Shares of Micron, which entered Thursday more than 50% higher year-to-date, were up 2% about 90 minutes before the opening bell.

Micron forecasts revenue above estimates on AI-driven memory chip demand

The memory chip maker reported a nearly 50% jump in third-quarter sales of its HBM chips from the previous three months, and said it will continue to invest in the chips. Micron Technology forecast fourth-quarter revenue above Wall Street estimates on Wednesday on robust demand for its high-bandwidth memory (HBM) chips used in artificial intelligence data centers. The memory chip maker reported a nearly 50% jump in third-quarter sales of its HBM chips from the previous three months, and said it will continue to invest in the chips. The results and the investment plans underscore a rise in demand for AI chips such as those from Nvidia and Advanced Micro Devices, both of which use Micron's memory chips. Many cloud companies, such as Google, have committed large investments this year toward AI infrastructure expansion, which underlines strong demand for AI-related products. The extent of tariff-related pull-ins from customers in the third quarter was fairly modest, Micron Chief Business Officer Sumit Sadana told Reuters. "So that's not something we lose sleep over," Sadana said, adding that he sees healthy demand for the second half of the calendar year. Micron also expects its market share in HBM chips would grow to match its overall share for dynamic random access memory (DRAM) chips sometime in the second half of calendar 2025. The company is one of the providers of high-bandwidth memory chips, besides South Korea's SK Hynix and Samsung . In April, Micron introduced a new business segment, called "cloud memory business unit", which will focus on products used by hyperscalers, as well as HBM chips that help perform data-intensive AI tasks quickly. Micron said it expects fourth-quarter revenue of $10.7 billion, plus or minus $300 million, compared with analysts' average estimate of $9.88 billion, according to data compiled by LSEG. For the third quarter, Micron reported revenue of $9.30 billion, compared with estimates of $8.87 billion. Excluding items, earnings per share stood at $1.91, above analysts' average estimate of $1.60.

Micron CEO Cautions AI Boom May Not Be Fully Sustainable, Flags Tariff-Driven Demand Pull-In - Micron Technology (NASDAQ:MU)

During Micron Technology Inc.'s MU third quarter results, the company's CEO, Sanjay Mehrotra, warned investors that not all of the AI-fueled demand surge may be sustainable. What Happened: On Wednesday, during the company's third quarter earnings call, while highlighting its soaring data center revenues, Mehrotra flagged potential short-term distortions tied to global trade tensions that investors need to be prepared for. He said, "There may have been some tariff-related pull-ins by certain customers," referring to the likelihood of some customers pulling forward their memory and storage orders ahead of time, to get ahead of potential trade and tariff-related disruptions. See Also: Billionaire David Tepper Dumps Nvidia, Slashes 'Magnificent 7' Holdings -- But Bets Big On These 2 AI And Blockchain Plays While this raises questions regarding demand visibility in the quarters ahead, Micron says that it is well prepared to "adjust to any unforeseen demand changes that may occur due to macro conditions or the evolving tariff-related situation." Mehrotra emphasized that the tariff-related impact was "relatively modest," but he does, however, acknowledge that the environment has gotten a lot more challenging since the "Liberation Day" tariffs were announced. Why It Matters: This was an eventful earnings call, with the company announcing $200 billion in fresh investments in the U.S. over the next 20 years, across manufacturing and R&D. Analysts continue to maintain a strong bullish outlook on the stock, with the high end of its price target at $250, representing a 96.8% upside from current levels. During its third quarter results on Wednesday, Micron reported $9.3 billion in revenue, ahead of consensus estimates at $8.87 billion. It posted a profit of $1.91 per share, again beating estimates at $1.60, driven by strong demand for its memory products for AI use-cases. Price Action: Micron's shares were down 0.52% on Wednesday, trading at $127.25, but are up 1.71% after hours, following its earnings announcement. According to Benzinga's Edge Stock Rankings, the stock scores well on Momentum and Quality, while featuring a strong price trend in the short, medium and long terms. Click here for deeper insights into the stock. Read More: Amazon CEO Andy Jassy Warns Of AI-Driven Workforce Reduction -- AMZN 'Won't Keep Everyone,' Says Ex-VP Ethan Evans In Warning To Employees Photo courtesy: Shutterstock MUMicron Technology Inc$129.952.12%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum77.45Growth65.44Quality83.74Value58.24Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

What's Going On With Micron Stock Thursday? - Micron Technology (NASDAQ:MU)

Micron Technology Inc MU shares are in the spotlight Thursday following the company's fiscal third-quarter results. Multiple analysts boosted price targets following the print. What Happened: Micron beat analyst estimates on the top and bottom lines in the third quarter, posting revenue of $9.3 billion versus estimates of $8.87 billion, and adjusted earnings per share of $1.91 versus estimates of $1.60, per Benzinga Pro. Total revenue was up close to 16% as DRAM revenue climbed to an all-time high and HBM revenue increased nearly 50% sequentially. Micron said data center revenue more than doubled year-over-year and highlighted growing AI-driven memory demand. Micron guided for fourth-quarter revenue of $10.7 billion at the midpoint versus estimates of $9.88 billion, and adjusted earnings at the midpoint of $2.50 per share, versus estimates of $2.01 per share. "We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025," said Sanjay Mehrotra, president and CEO of Micron. Following the company's quarterly results, Rosenblatt maintained a Buy and raised its price target to $200. Needham maintained a Buy and raised its target to $150, JPMorgan maintained an Overweight and lifted its target to $165 and BofA Securities stuck with a Neutral rating and raised its target to $140. Thursday morning, Micron announced the Micron 2600 NVMe SSD, which it said achieves up to 63% faster sequential write and 49% faster random write speeds than competing value QLC and TLC SSDs. "This Micron innovation milestone allows for broader commercial adoption of QLC NAND," said Mark Montierth, corporate vice president and general manager of the Mobile and Client Business Unit at Micron. MU Price Action: Micron shares were down 0.63% at $126.42 at the time of publication Thursday, although well off the highs made in Wednesday's after-hours session. Mehrotra said on the earnings call late Wednesday that the company may have experienced "some tariff-related pull-ins by certain customers," which appears to be the reason shares pared some of their gains. The stock has gained approximately 51% since the start of the year, according to Benzinga Pro. Read Next: Micron CEO Cautions AI Boom May Not Be Fully Sustainable, Flags Tariff-Driven Demand Pull-In Photo: courtesy of Micron. MUMicron Technology Inc$125.89-1.06%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum77.45Growth65.44Quality83.74Value58.24Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Weak PC, Phone Demand Keep Micron Grounded Despite Stellar Earnings - Micron Technology (NASDAQ:MU)

Muted PC and phone demand continues to weigh on memory chip pricing, prompting Bank of America Securities to maintain a Neutral rating on Micron Technology MU, even as the company posts blowout earnings and bullish guidance. Analyst Vivek Arya maintained Micron Technology with a Neutral and raised the price target from $84 to $140 on Thursday. Micron reported third-quarter revenue of $9.3 billion, up roughly 16%, topping the consensus estimate of $8.87 billion. The company reported third-quarter adjusted earnings of $1.91 per share, beating analyst estimates of $1.60 per share. Also Read: Micron And Trump Announce $200-Billion US Chip Expansion Plan, Aiming To Create 90K Jobs Micron expects fourth-quarter revenue of $10.7 billion, plus or minus $300 million, versus estimates of $9.88 billion. The company anticipates fourth-quarter adjusted earnings of $2.50 per share, plus or minus 15 cents, versus estimates of $2.01 per share. Micron Technology is the last remaining pure-play U.S.-based memory company and is the third-largest supplier of memory chips including Dynamic Random Access Memory (DRAM), Not AND (NAND). Micron's chips support disruptive trends across artificial intelligence, 5G, machine learning, and autonomous vehicles, as per Arya. The rerating reflected improved DRAM outlook and continued High Bandwidth Memory (HBM) ramp, Arya noted. According to the analyst, Micron now expects the fiscal fourth-quarter gross margin to be 42.0%, above the fiscal third-quarter's guided 36.5%, and the fiscal first-quarter gross margin could expand further. Arya attributed the gross margin beat to a robust pricing environment and an improving product mix. Importantly, management expects to exit fiscal 2025 with tight DRAM inventories, significantly reduced NAND inventories, and overall company inventory near the target 120-day level, per the analyst, a substantial sequential improvement. On the AI side, Micron's HBM opportunities continue to expand, now shipping HBM3e 12-high to 4 customers (Graphics Processing Unit (GPU) or Application-Specific Integrated Circuit (ASIC), and the 12-high will likely crossover 8-high by the fiscal fourth-quarter. At 20-25% share of the $35 billion calendar 2025 Total Addressable Market (TAM), Arya expects Micron HBM to reach $2.4-2.5 billion exiting the fiscal first quarter. Overall, the analyst raised calendar 2025-27E sales by 4-6% and EPS by 13-23%. However, Arya reiterated Neutral as NAND pricing remains uncertain and startup cost headwinds to gross margins remain into calendar 2026, limiting visibility beyond the near term. Arya projected fourth-quarter sales of $10.71 billion (prior $9.83 billion) and adjusted EPS of $2.50 (prior $1.82). Price Action: MU stock is trading lower by 1.19% to $125.70 at last check Thursday. Read Next: Which Small And Mid-Cap Chip Stocks Are Set For Big Gains? MUMicron Technology Inc$124.25-2.36%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum77.45Growth65.44Quality83.74Value58.24Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Micron's $200 Billion US Chip Investment Plan Gets Backing From Trump Admin As AI Demand Soars - Micron Technology (NASDAQ:MU)

Memory chipmaker Micron Technology Inc. MU announced on Wednesday it will invest approximately $200 billion in U.S. manufacturing and research over the next 20-plus years, marking one of the largest domestic semiconductor investments in American history. What Happened: The Boise-based company said the investment includes $150 billion in manufacturing facilities and $50 billion in research and development, representing a $30 billion increase beyond previously announced plans. The announcement came as Micron reported record third-quarter revenue of $9.3 billion, driven by surging demand for artificial intelligence applications. "This investment underscores our commitment to strengthening America's semiconductor supply chain and meeting the unprecedented demand for AI-driven memory solutions," said Sanjay Mehrotra, Micron's chairman, president and CEO, during the company's earnings call. The investment plan includes the construction of a second leading-edge memory fabrication facility in Boise, Idaho, alongside the company's first Idaho fab, currently under construction. Micron also plans to expand and modernize its existing facility in Manassas, Virginia, which serves automotive, aerospace, defense and industrial markets. See Also: Mark Zuckerberg's Meta Beats Lawsuit Over AI Training On Books, Judge Finds 'No Meaningful Evidence On Market Dilution' Why It Matters: The company said it will bring advanced packaging capabilities to the U.S. to support long-term high-bandwidth memory growth plans. Micron's first Idaho facility is expected to begin DRAM wafer output in the second half of 2027, with the second facility starting production before a planned New York facility. The announcement received support from President Donald Trump's administration as part of broader efforts to strengthen domestic semiconductor manufacturing. Micron's investment comes amid growing demand for high-performance memory chips used in AI applications, with the company's high-bandwidth memory products sold out through 2025. Micron shares rose 0.94% in after-hours trading at $128.45 following the earnings announcement. The company expects fourth-quarter revenue of $10.7 billion, significantly above analyst estimates of $9.88 billion. MU shows strong momentum, growth, and quality scores, coupled with a modest valuation, according to Benzinga Edge Stock Rankings. The stock also exhibits favorable short, medium and long-term price trends. Click here to view the full performance breakdown. Read Next: Elizabeth Warren Blames Trump's 'Dumb Trade War' For Fed's Grim Outlook: The President Is 'Standing In The Way Of Lower Rates And Lower Costs' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Tada Images / Shutterstock.com MUMicron Technology Inc $128.450.42% Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock Rankings Edge Rankings Momentum 77.97 Growth 66.14 Quality 84.66 Value 57.39 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs

Micron Impresses Wall Street With Strong Q3 Earnings, 'Continued Strength In AI Data Center' - Micron Technology (NASDAQ:MU)

Micron Technology Inc MU shares fell Thursday in early trading, despite the company on Wednesday reporting upbeat fiscal third-quarter earnings. The announcement came amid an exciting earnings season. Here are some key analyst takeaways. KeyBanc Capital Markets On Micron Technology Analyst John Vinh reiterated an Overweight rating, while raising the price target from $135 to $160. Micron Technology reported quarterly revenues and earnings of $9.30 billion and $1.91 per share, beating consensus of $8.86 billion and $1.60 per share, respectively, Vinh said in a note. The results were driven by "improved pricing/mix and healthy demand, particularly for DRAM and HBM," he added. "Looking into F4Q, MU sees continued strength in AI data center, a recovery in auto/industrials, and tightening DRAM supply driving favorable mix and improving GM," the analyst wrote. For the fiscal fourth quarter, management guided to revenue and earnings of $10.7 billion and $2.50 per share, above the consensus of $9.90 and $2.03 per share, he further wrote. Piper Sandler On Micron Technology Analyst Harsh Kumar maintained an Overweight rating, while lifting the price target from $120 to $165. Micron Technology's DRAM and NAND bit shipments both grew around 20% sequentially, Kumar said. The company continued to gain market share with its HBM (high-bandwidth memory) product, he added. Revenues generated by HBM continued to grow by more than 50% sequentially, the analyst stated. "We continue to see MU as an outsized beneficiary from current market trends in both data center and AI due to their HBM products and market positioning," he further wrote. Stifel On Micron Technology Analyst Brian Chin reaffirmed a Buy rating, while taking the price target higher from $130 to $145. Micron Technology announced its results and guidance higher than consensus estimates, Chin said. The company guided to gross margins of 42.0% for the fiscal fourth quarter, "exceeding our 38.0%," he added. Management noted that data center demand had strengthened the guidance, the analyst stated. "This is expected to drive a more favorable mix, reflected in a better-than expected F4Q GM guide," he further wrote. Check out other analyst stock ratings. RBC Capital Markets On Micron Technology Analyst Matt Bryson reiterated an Outperform rating, while raising the price target from $150 to $165. While Micron Technology's sequential growth in bit shipments was strong, expectations were "already in this range," Bryson said. The company's data center revenues more than doubled on a year-on-year basis and reached record levels, he added. HBM sales grew nearly 50% sequentially to surpass $1.5 billion in the quarter, the analyst stated. The company's HBM ramp "remains on track, with growth in that market in turn lifting MU's future revenue and margin profile," he added. Cantor Fitzgerald On Micron Technology Analyst C.J. Muse maintained an Overweight rating, while lifting the price target from $145 to $155. While Micron Technology was expected to announce a strong beat-and-raise quarter, its results and guidance were "well above just about everyone's expectations," Muse said. While indicating some tariff-related pre-purchases, management said that secular trends in both data center and HBM memory and a cyclical recovery in NAND were "more important drivers of the recovery," the analyst stated. The company also suggested that "a return to tight/normalized inventory exiting August FY25 sets the stage for a strong recovery to continue through the remainder of CY25 and into FY26," he further wrote. Needham On Marvell Technology Analyst Quinn Bolton reaffirmed a Buy rating, while taking the price target higher from $120 to $150. Micron Technology reported solid results and guidance, "driven by continued strength in data center along with a recovery in other end markets," Bolton said. "The AI demand environment remains healthy and Micron continues to increase its share in the HBM market," he added. The company reported non-GAAP gross margins of 39.0% and guidance to 42.0% at the midpoint, surpassing consensus of 39.2%, the analyst stated. "The GM expansion is attributed to product mix shift towards DRAM from NAND and an improving pricing environment," he further wrote. MU Price Action: Shares of Micron Technology declined by 1.88% to $124.87 at the time of publication on Thursday. Read More: * Micron CEO Cautions AI Boom May Not Be Fully Sustainable, Flags Tariff-Driven Demand Pull-In Photo: Shutterstock MUMicron Technology Inc$124.87-1.87%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum77.45Growth65.44Quality83.74Value58.24Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Micron Earnings: Rocketing AI Demand

The third quarter of fiscal 2025 was a bonanza for memory chip manufacturer Micron. Revenue rose 37% year over year, and adjusted EPS more than tripled, thanks largely to soaring demand for data center memory chips. Revenue from high-bandwidth memory, which is used in AI accelerators, grew by 50% from the previous quarter, while overall data center revenue more than doubled year over year. Micron is currently ramping production of its HBM3E 12H product, and it expects its HBM market share to reach similar levels as its overall DRAM market share in the second half of the calendar year. The company is now shipping HBM to four customers at high volume, and it's delivered samples of its next-generation HBM4 chips to multiple customers as it prepares to ramp production in 2026. Overall DRAM revenue rose 51% year over year to $7.1 billion, with bit shipments up 20% from the prior quarter and average selling prices down slightly. NAND revenue edged up by 4% year over year to $2.2 billion, with a mid-20s-percentage jump in bit shipments and a high-single-digit-percentage drop in average selling prices. For the fourth quarter of fiscal 2025, Micron expects to produce revenue between $10.4 billion and $11.0 billion, an adjusted gross margin of roughly 42%, and adjusted earnings per share between $2.35 and $2.65. Immediate Market Reaction Shares of Micron were up about 4% in after-hours trading on Wednesday following a strong earnings report. Micron easily beat analyst expectations for revenue and earnings, and its guidance was optimistic as well. AI-related revenue growth was impressive, and with HBM4 set to ramp next year, that part of Micron's business should continue to boom. What to Watch Micron is successfully catching up in the HBM market, with its market share approaching its overall DRAM market share. Overall pricing declines for Micron's DRAM and NAND chips paint a mixed picture, with strong pricing for HBM and server chips likely being offset by weaker pricing in other end markets. Micron noted that customer inventory levels are generally healthy, and recent reports suggest that DRAM prices have been rising, partly due to tariff-related stockpiling. The hangover from that stockpiling could sting Micron later this year, although strong demand from the AI industry could more than offset any weakness.

Micron Reports Record Q3 Revenue Growth

Record-setting data center revenues, aggressive HBM memory scaling, and a $200 billion domestic investment plan featured prominently; management forecasts Q4 revenue (non-GAAP) at $10.7 billion with a 42% gross margin midpoint, underpinned by ongoing AI-driven demand. HBM Outperformance Transforms Competitive Position and Product Mix Data center revenue more than doubled year over year, driven by a nearly 50% sequential jump in HBM (high bandwidth memory -- critical for AI/accelerator platforms) revenue. Revenue from HBM is running at over a $6 billion annualized rate, and Micron became the #2 global data center SSD brand by market share during calendar Q1 2025, providing evidence of cross-platform execution. HBM's die-trade ratio -- reflecting DRAM wafer demand per final product -- will surpass 3 for HBM4, increasing overall DRAM bit supply tightness industry-wide. "I will tell you that in this year, you look at calendar year '25, HBM is growing from last year about $18 billion in revenue to approximately $35 billion in calendar year '25. We see in calendar year '26, if you look at HBM bit demand growth, it will significantly exceed the overall DRAM industry demand growth." -- Sanjay Mehrotra, Chairman, President and CEO This also stresses non-HBM bit supply for the broader industry. Technology and Capacity Investment Accelerate U.S. Expansion and Node Leadership Micron announced a $200 billion, multi-decade U.S. investment plan, including $150 billion in manufacturing and $50 billion in R&D over the next twenty-plus years, with two new Idaho fabs and advanced packaging capabilities, while continuing ramp on one-gamma (1γ) DRAM and G9 QLC NAND nodes. First customer DRAM wafer output at Idaho's new ID1 fab is scheduled for H2 CY2027, with further site expansion and co-location benefits improving scale and time-to-market. "Two weeks ago, with support from the Trump administration, Micron announced plans to invest approximately $200 billion in the U.S, which includes $150 billion in manufacturing and $50 billion in R&D over the next twenty-plus years. As part of this $200 billion investment plan, Micron plans to invest an additional $30 billion beyond previously announced plans, which includes building a second leading-edge memory fab in Boise, Idaho, expanding and modernizing our existing fab in Manassas, Virginia, serving the automotive, aerospace, defense, and industrial markets, and bringing advanced packaging capabilities to the U.S. to support our long-term HBM growth plans after we have established sufficient DRAM wafer scale in our U.S. operations." -- Sanjay Mehrotra, Chairman, President and CEO This multi-phase U.S. investment secures long-term domestic supply and supports advanced technology leadership for next-generation AI workloads. Fiscal Execution and Inventory Positioning Lay Foundation for Multi-Year Growth Free cash flow surpassed $1.9 billion -- highest in six years -- driven by Lean inventories (down $280 million quarter over quarter), tight bit supply, and operating income (non-GAAP) reaching $2.5 billion (26.8% margin). DRAM now accounts for 76% of total revenue (non-GAAP), as Bit shipments increased more than 20% sequentially (non-GAAP). amidst low single-digit DRAM price declines (non-GAAP), while strong sequential growth across each business unit demonstrates diversified demand (non-GAAP). "Ending inventory fiscal Q3 was $8.7 billion or 139 days. Inventory was down $280 million sequentially, and inventory days were down nineteen days sequentially, driven by strong sequential bit shipment growth in both DRAM and NAND. With low inventories on hand and a constructive demand environment, we will continue to focus on improving pricing and further strengthening our product mix." -- Mark Murphy, CFO Looking Ahead Management guides Q4 revenue (non-GAAP) to a record $10.7 billion (+15% sequentially), gross margin to 42% (±100 bps), operating expenses to ~$1.2 billion, and non-GAAP EPS for Q4 is expected to be $2.50 (±$0.15). Capex remains at approximately $14 billion, predominantly supporting HBM ramps, facility construction, and R&D. DRAM bit supply growth for non-HBM products is projected below industry demand, while tight inventories and measured node transitions position Micron to maintain pricing leverage through fiscal year-end.

These 2 Artificial Intelligence (AI) Stocks Are Undervalued Right Now | The Motley Fool

Less than three months after the stock market plunged on President Donald Trump's "Liberation Day" tariffs announcement, major indexes are back near all-time highs. Investors have shrugged off concerns around tariffs and a potential economic slowdown as businesses adjusted to the new trade regime and as economic data so far around unemployment and inflation has been stable, showing that tariffs have not yet had a significant impact on the economy. Despite the resurgence, which has led to stocks like Nvidia hitting all-time highs again, there are still deals to be found among artificial intelligence (AI) stocks. Keep reading to learn about two of them. Fresh off its latest earnings report, Micron Technology (MU -0.98%) just delivered another strong round of results in the fiscal third quarter, beating estimates on the top and bottom lines and offering better-than-expected guidance for the fourth quarter. There was one blemish in the report, which was that pricing declined slightly on a sequential basis, which led to the stock falling less than 1% on Thursday. However, Micron still looks well-positioned to capitalize on the AI boom. Its data center business is surging, more than doubling on a year-over-year basis, pacing overall revenue growth of 37%. It also reported nearly 50% revenue growth in high-bandwidth memory (HBM), and reached record DRAM revenue, which includes HBM. Micron's margins also improved. Its gross margin jumped from 26.9% to 37.7%, and operating margin increased from 10.6% to 23.3%. Adjusted earnings per share more than tripled from $0.62 to $1.91. In addition to its ramping financials, Micron finds itself in an advantageous position because it's the only U.S. manufacturer of advanced memory chips, meaning it's strategically important to the country at a time when the government is focused on reshoring chip production and ensuring adequate supply. Micron was awarded $6.2 billion from the CHIPS Act, and also agreed to invest $200 billion in new foundries in R&D in the U.S., though the timeline on that is unclear. Looking at valuation, Micron looks cheap. Based on its latest guidance, the stock trades at a forward P/E of less than 16, and analysts expect earnings per share to hit $12 in fiscal 2026, giving the stock a P/E of roughly 10 based on that forecast. Micron does face cyclical risk, but if the company can hit those numbers, the stock is a good bet to move higher. Another chip stock with significant upside potential is Advanced Micro Devices (AMD 0.05%). AMD might not look undervalued, according to its trailing price-to-earnings ratio of 39, but that's actually an attractive price for the company's growth potential and momentum. AMD stock is still down by more than a third from its peak last year, but its recent results show it's growing quickly in the key data center segment, and it has emerged as the only real challenger to Nvidia in the AI GPU market. Though it's a distant second there, that's proven to be a valuable position, and is likely to earn it support from customers, as having competition for Nvidia is to their benefit as well. In its first-quarter earnings report, revenue rose 36% to $7.4 billion, led by a 57% jump in revenue to $3.7 billion, which was driven by growth in its EPYC CPU and Instinct GPU chips. AMD's strength in both CPUs and GPUs, arguably give it a competitive advantage as well and help differentiate the company from competitors. AMD also impressed in the client segment, where revenue jumped 68% to $2.3 billion thanks to strong demand for its Zen 5 Ryzen processor. While that growth rate is likely to slow, AMD has been steadily grabbing market share from Intel, and that trend is likely to continue. The company is also making moves to beef up its AI capabilities. It acquired ZT Systems in the first quarter to improve its expertise in servers and rack-level solutions, which it said would help it address the data-center AI accelerator opportunity, which it said was expected to reach $500 billion by 2028. It's also acquired a number of AI start-ups, which should accelerate its advances in AI. Analysts are expecting rapid growth from the company, forecasting adjusted EPS of $5.71 in 2026. Based on that figure, the stock trades at a forward P/E of 25.2, making AMD looks like a good deal, considering its growth potential in AI and beyond.

This Dark-Horse AI Stock Has Doubled Since April, and It Still Looks Like a Buy | The Motley Fool

By now, investors are well aware of the big winners in artificial intelligence (AI): stocks like Nvidia and Palantir that have already delivered huge returns for early investors. However, there are plenty of winners in AI, and some of them have been more overlooked than others. One stock that still seems undervalued even after doubling since the market dip in April is Micron Technology (MU -0.98%), a leading maker of memory chips, including high-bandwidth chips that are used for AI applications. Micron is also an integrated device manufacturer, meaning it both designs and manufactures its own chips, differentiating it from companies like Nvidia, Broadcom, and Advanced Micro Devices. That exposes the company to added volatility due to the cyclical nature of the semiconductor industry, but it also gives the stock more upside in good times because it can fully capture the benefit of the AI boom. Coming into the company's fiscal third-quarter earnings report, the stock had been rallying alongside the rest of the tech sector as concerns about tariffs and a recession have faded since President Donald Trump announced the "Liberation Day" tariffs and later paused them. Micron did not disappoint. The momentum continued in the third quarter as revenue rose 37% to $9.3 billion, and gross profit nearly doubled from $1.83 billion to $3.5 billion as gross margin expanded from 26.9% to 37.7%. That shows the company is benefiting from increased efficiencies as more of its business shifts to the data center sector, much of which is AI, and high-bandwidth memory (HBM). Management noted that HBM revenue grew nearly 50% sequentially, and data center revenue more than doubled on a year-over-year basis to a quarterly record. The company also recorded an all-time high in revenue for DRAM (dynamic random-access memory), which includes HBM revenue. And 55% of its revenue came from data center and networking sales, up from 30% a year ago. On the bottom line, Micron's performance also continued to improve with expanding margins as adjusted earnings per share (EPS) jumped from $0.30 to $1.68, and operating margin surged form 10.6% a year ago to 23.3%. Again, that figure improved sequentially, rising from 22% to 23.3%, a favorable sign. The company easily beat estimates on the top and bottom lines, and the stock initially jumped on the results after hours, but then it pulled back as the company revealed that prices were down for some of its chips. Nonetheless, guidance for the fiscal fourth quarter, its biggest of the year, was strong as well. The company expects revenue of $10.4 billion to $11 billion, up 38% from a year ago, and adjusted EPS of $2.35 to $2.65, up from $1.18 in the quarter a year ago. Following the earnings report and updated guidance, Micron trades at a forward P/E of about 16, a substantial discount to the S&P 500 and its chip stock peers. Analysts also see earnings continuing to ramp up into fiscal 2026, forecasting adjusted EPS of $12 next year. If those forecasts are correct, the stock certainly looks like a buy. The aforementioned pricing concerns seem to have led to a modest sell-off in the stock on Thursday following the earnings report, but the company looks well positioned to continue to benefit from growth in AI. Its biggest customer is now Nvidia, and the relationship between the two companies seems to be getting stronger. Micron was invited to present its portfolio of data center memory and storage products at Nvidia's GTC conference in March. It is also the only manufacturer of advanced memory chips in the U.S., making it a strategically important company, and it was awarded $6.2 billion to build new plants in the U.S. Those factors, along with what appears to be a lasting tailwind in AI, should drive the company's growth for the foreseeable future. While Micron will experience another cyclical rotation at some point, it looks like an attractive buy at the current valuation.

1 Super Semiconductor Stock (Besides Nvidia or AMD) to Buy Hand Over Fist | The Motley Fool

When it comes to artificial intelligence (AI) chips, most investors typically think about the graphics processing units (GPUs) designed by Nvidia (NVDA 0.35%) and Advanced Micro Devices (AMD -1.22%). GPU sales have soared for both companies over the last couple of years, and in Nvidia's case, they have added trillions of dollars to its market capitalization. But Micron Technology (MU -1.21%) also deserves recognition for its memory and storage chips, which are increasingly important for AI workloads in data centers, personal computers, and even smartphones. The company just released financial results for its fiscal 2025 third quarter (which ended May 29), revealing a continued surge in demand for AI-related memory capacity. Micron stock is up 42% in 2025 already, but here's why it might still be a screaming buy. Data center GPUs are designed for parallel processing, which means they can perform several computations simultaneously and handle the enormous data sets required to deploy AI models. But these workloads also need high-bandwidth memory (HBM), which stores information in a ready state so it can be called upon by the GPU at a moment's notice. Micron's HBM3E solution for the data center leads the industry in performance and efficiency. In fact, Nvidia selected it to power its latest Blackwell and Blackwell Ultra GPUs, and Advanced Micro Devices (AMD) will also use it in its upcoming MI355X GPUs. Micron is now gearing up to produce commercial quantities of its new HBM4 data center solution next year, which will deliver a 60% performance boost over HBM3E and consume 20% less power, making it ideal for next-generation "reasoning" AI models. Micron estimates its addressable market for data center HBM will be worth $35 billion this calendar year, and expects that figure to soar to $100 billion by 2030, so there is an enormous opportunity ahead for the company. But some AI workloads are now being processed on personal computers (PCs) and smartphones without the need for external computing capacity from data centers. This trend will accelerate as chips become more powerful, and it's already driving up demand for DRAM (memory). Micron says AI-enabled PCs typically require a minimum DRAM capacity of 16 gigabytes, compared to 12 gigabytes for their non-AI counterparts, and AI smartphones are commanding a similar increase in capacity. Micron generated $9.3 billion in total revenue during the fiscal 2025 third quarter, ended May 29. It was a 37% increase from the year-ago period, and it was also comfortably above the high end of management's guidance range, which was $9 billion. But the real growth story lies beneath the surface of the headline number. Micron's compute and networking segment, which is where it accounts for its data center HBM sales, delivered $5.1 billion in revenue, which was a whopping 97% increase from the year-ago period. Revenue from the mobile segment came in at $1.6 billion, and while that was down 2% year over year, it represented growth of 45% sequentially (compared to the second quarter of fiscal 2025 three months earlier). Micron's soaring revenue also led to a strong result at the bottom line during the quarter. Its generally accepted accounting principles (GAAP) earnings per share (EPS) soared by an eye-popping 460% year over year to $1.68. Looking ahead to the fourth quarter (which will end Aug. 31), Micron is forecasting a record $10.7 billion in revenue along with $2.29 in EPS, which would represent year-over-year increases of 38% and 190%, respectively. Despite its 42% gain in 2025 so far, Micron stock is still relatively cheap. Based on the company's trailing-12-month EPS of $5.55, the stock is trading at a price-to-earnings (P/E) ratio of 22.5. That's a 55% discount to Nvidia stock, which currently trades at a P/E ratio of 50.9: Considering Micron's HBM3E solution is integrated into all of Nvidia's latest GPUs, Micron's data center sales should grow in lockstep with Nvidia's data center sales from here. When you also factor in the potential demand from AMD for its latest GPUs, and demand for memory from AI PC and smartphone manufacturers, it's reasonable to conclude that Micron stock deserves a higher valuation. As a result, Micron stock could be a great buy right now, especially for investors who already own Nvidia and AMD and are looking to diversify their AI semiconductor holdings.

Why Micron Technology Rallied 30.5% in June | The Motley Fool

Micron reported earnings late in the month that handily outpaced analyst expectations. Even though the stock fell in the aftermath, there had already been a huge run-up into the earnings report, reflecting a pre-earnings surge in memory pricing. In its fiscal third quarter, Micron saw revenue grow 36.6% year over year to $9.3 billion, with adjusted non-GAAP (generally accepted accounting principles) earnings per share more than tripling to $1.91, each well ahead of analyst expectations. In addition, Micron forecast an above-consensus $10.7 billion in revenue for the next quarter, along with $2.50 in adjusted EPS, amounting to quarter-over-quarter growth rates of 15% and 31%, respectively. The stellar results have come about due to artificial intelligence (AI), which is no surprise. Micron reported a near-50% quarterly increase in its high-bandwidth memory (HBM) used in AI training. Micron got a bit of a late start on HBM, but is rapidly catching up to market leader SK Hynix, while Samsung, the leader in traditional DRAM memory, struggles with its HBM technology. Micron management reiterated it was on track to achieve the same overall market share in HBM, as its current overall DRAM share by the second half of the year, and that it had now qualified its HBM solutions with four customers across AI GPUs and ASICs. Investors had expected good news, especially as older-generation DDR4 prices skyrocketed over the last couple of months, while HBM prices remain fixed and profitable based on prenegotiated contracts. The DDR4 price spike won't last, however, because it's due to Micron and other memory players "end of life-ing" those DDR4 products for newer DDR5. Still, the long-term outlook for DRAM memory appears positive, given the massive demand coming from artificial intelligence systems. Micron now trades at 22 times earnings, but since the company has been so cyclical in the past, it has usually been better to value Micron based on book value. With the stock now at 2.75 times book value, that's at the high end of its historical range. That said, things are arguably looking better for Micron than ever before in the age of AI. HBM pricing is more stable than traditional memory and is in perpetual short supply, given that HBM is a primary bottleneck for AI systems today. Furthermore, Micron has surged ahead of its two main rivals in process technology, with management noting "excellent progress" on its upcoming 1-gamma node. So while Micron's shares may look fully valued, the stock may re-rate higher if it can sustain multiple years of better profitability and less cyclicality.

Micron: Deeply Mispriced (NASDAQ:MU)

Despite sector cyclicality risks, I see continued upside as Micron capitalizes on AI spending and FCF margin expansion with new memory solutions (HBM4). Micron (NASDAQ:MU) reported strong results for its third fiscal quarter that exceeded top and bottom line Wall Street estimates amid a continual spending boom in the artificial intelligence market that greatly benefits memory makers right now. With AI-related I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst's Disclosure:I/we have a beneficial long position in the shares of MU, NVDA, AMD, TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Micron shares rise on bets of strong demand for AI-related memory chips

The company saw a nearly 50 per cent jump in sales of high-bandwidth memory (HBM) chips for the third quarter compared to the previous three months. Micron is one of the providers of HBM chips besides South Korea's SK Hynix and Samsung. "AI servers are giving Micron an over-caffeinated growth spurt... (and) Micron is the only kid on the block shipping HBM3E at scale," said Michael Ashley Schulman, partner at Running Point Capital Advisors. Micron said it will continue to invest in HBM chips which reflects the growing demand from AI chip front runners - Nvidia and Advanced Micro Devices, who are customers of the company. J.P.Morgan said it expects Micron's HBM chip sales to accelerate, hitting a US$8 billion annualized revenue run rate over the next one to two quarters. Micron's Chief Business Officer Sumit Sadana told Reuters the extent of tariff-related pull-ins from customers in the third quarter was fairly modest. "Tariffs (are) a factor, and management's acknowledgment of that is a positive, in our view. But don't see it as a big driver of recent strength," Morgan Stanley analysts said in a note. Following the results, at least 10 brokerages raised their price targets on the stock. Shares of peers AMD, Nvidia and Marvell Technology rose between 1-3 per cent in premarket trading. Micron is up 51.2 per cent, while AMD and Nvidia have gained about 19 and 15 per cent, respectively, so far this year. Micron has a 12-month forward price-to-earnings ratio of 11.85, compared to SK Hynix's 6.48 and Samsung's 11.57. ---

Micron shares rise on bets of strong demand for AI-related memory chips

(Reuters) -Micron Technology shares rose 2% in premarket trading on Thursday, after a robust forecast from the chipmaker for fourth-quarter revenue on booming demand for its memory chips that power AI data centers. The company saw a nearly 50% jump in sales of high-bandwidth memory (HBM) chips for the third quarter compared to the previous three months. Micron is one of the providers of HBM chips besides South Korea's SK Hynix and Samsung "AI servers are giving Micron an over-caffeinated growth spurt... (and) Micron is the only kid on the block shipping HBM3E at scale," said Michael Ashley Schulman, partner at Running Point Capital Advisors. Micron said it will continue to invest in HBM chips which reflects the growing demand from AI chip front runners - Nvidia and Advanced Micro Devices, who are customers of the company. J.P.Morgan said it expects Micron's HBM chip sales to accelerate, hitting a $8 billion annualized revenue run rate over the next one to two quarters. Micron's Chief Business Officer Sumit Sadana told Reuters the extent of tariff-related pull-ins from customers in the third quarter was fairly modest. "Strength in AI set to be a material contributor to results, we see a scenario where the narrative isn't all about tariff impacts," Morgan Stanley analysts said in a note. Following the results, at least 10 brokerages raised their price targets on the stock. Shares of peers AMD, Nvidia and Marvell Technology rose between 1-2% in premarket trading. Micron is up 51.2%, while AMD and Nvidia have gained about 19% and 15%, respectively, so far this year. Micron has a 12-month forward price-to-earnings ratio of 11.85, compared to SK Hynix's 6.48 and Samsung's 11.57. (Reporting by Akriti Shah in Bengaluru; Editing by Shailesh Kuber)

Micron forecasts revenue above estimates on AI-driven memory chip demand

(Reuters) -Micron Technology forecast fourth-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its memory chips used for artificial intelligence hardware in data centers. Shares of the memory chipmaker rose 4.3% in extended trading. Micron said third-quarter sales of its high-bandwidth memory chips rose 50% from the previous three months, and that it will continue to invest to meet demand. The results and the investment plans signal rise in demand for AI chips such as those from Nvidia and Advanced Micro Devices, both of which use Micron's memory chips. Many cloud companies such as Google have committed large investments this year on AI infrastructure expansion, which underscores strong demand for AI-related products. Micron is one of the three providers of high-bandwidth memory chips, besides South Korea's SK Hynix and Samsung. In April, Micron introduced a new business segment, called "cloud memory business unit", which will focus on products used by hyperscalers, as well as HBM chips that help perform data-intensive AI tasks quickly. Micron said it expects fourth-quarter revenue of $10.7 billion, plus or minus $300 million, compared with analysts' average estimate of $9.88 billion, according to data compiled by LSEG. The company expects an adjusted gross margin of about 42%, plus or minus 1%. Analysts on average expect an adjusted gross margin of 39.15%. For the third quarter, Micron reported revenue of $9.30 billion, compared with estimates of $8.87 billion. Excluding items, earnings per share stood at $1.91, above analysts' average estimate of $1.60 per share. (Reporting by Harshita Mary Varghese in Bengaluru and Stephen Nellis in San Francisco; Editing by Shinjini Ganguli)