Latest news with #HBM3E
Miami Herald
2 days ago
- Business
- Miami Herald
Analysts reboot Micron Technology stock price target ahead of earnings
An elephant might never forget but Micron Technology (MU) has more storage space. The Boise, Idaho, company makes memory and storage chips for data centers, computers and smartphones, and its client list includes such tech-sector superstars as AI-chip chieftain Nvidia (NVDA) , Mac and iPhone maker Apple (AAPL) , Facebook parent Meta Platforms (META) and software kingpin Microsoft (MSFT) . Don't miss the move: Subscribe to TheStreet's free daily newsletter Make no mistake, there's money in memories, and we're not just talking about those singing cats on Broadway. "After the historic downturn of 2022–2023, the memory industry has entered a phase of strong recovery. In 2024, memory revenue reached a record $170 billion," according to market researcher Yole Group. "This rebound was fueled by AI-training requirements in data centers, with [high-bandwidth memory) playing a pivotal role due to its premium pricing and performance advantages," the firm added. HBM continues to outperform the broader DRAM chip segment, Yole Group said. This year HBM revenue is set to nearly double to around $34 billion. Micron is a key player in the HBM market, offering solutions like HBM3E and HBM4 designed for high-performance computing and AI company recently joined the Trump administration to unveil plans to expand its U.S. investments to about $150 billion in domestic memory manufacturing and $50 billion in research and development, creating an estimated 90,000 direct and indirect jobs. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move "Micron's U.S. memory manufacturing and R&D plans underscore our commitment to driving innovation and strengthening the domestic semiconductor industry," Chairman, President and CEO Sanjay Mehrotra said in a statement. The company's shares are up nearly up nearly 45% this year and off 16% from this time in 2024. Investment firms have been issuing research reports for Micron Technology ahead of its fiscal-third-quarter earnings report, scheduled for June 25. Wedbush boosted its price target on Micron to $150 from $130 while maintaining an outperform rating. The firm said memory-pricing trends turned more positive in the second quarter. And while Wedbush said it doesn't see as significant an inflection in Q3 as it had been expecting back in March, the firm said pricing for both DRAM and NAND, which are two types of semiconductor memory, "still will lift over the next couple of quarters." Better fundamentals are driven by stronger enterprise/server demand, which started around April and looks to hold through the rest of the year, Wedbush said. Demand for both AI and standard workloads appears better than might have been initially anticipated, it said. "Moreover, we view growing [high-bandwidth memory] requirements as not just positive for MU's numbers but also ultimately positive for industry dynamics as [capital spending] and clean-room space are reallocated to support HBM growth," Wedbush said. Related: Analysts rework Micron stock price targets after earnings This will limit the likelihood of too much supply of NAND/DRAM, and it increases the probability that production of more standard parts will trail demand. That, the firm said, would create a more positive pricing/margin cycle vs. what is embedded in its expectations, the firm said. Morgan Stanley maintained an equal-weight rating and $98 price target on Micron, given how much the stock has rallied already, according to The Fly. But the investment firm is "tactically bullish," given that AI spending is materially accelerating as Micron grows its participation. The investment firm, which notes that its estimates remain 20% above consensus for August-quarter earnings, also highlights Sandisk, which it likes better long term and on which it has an overweight rating. Based in Milpitas, Calif., Sandisk designs and produces flash-memory products, including memory cards, USB flash drives and solid-state drives. Consensus numbers have started to come up for Micron over the past few weeks, but in addition to Morgan Stanley being about 20% above consensus for August earnings per share, the firm is also 14% above for November after it raised estimates six weeks ago. Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Korea Herald
11-06-2025
- Business
- Korea Herald
SK hynix CEO warns of looming tariff volatility despite AI chip boom
SK hynix Chief Executive Officer Kwak Noh-jung raised concerns over rising tariff-related risks in the second half of the year, while the company celebrates its record-breaking sales, according to industry sources Wednesday. Speaking at an internal town hall meeting with employees on Tuesday, Kwak said the company's operations are going as planned and called for continued collective efforts to achieve goals. 'It is difficult to predict for next year, but for now, we are moving in line with our plan. Let's work together to achieve our targets," Kwak said during the meeting held at the company headquarters in Icheon, Gyeonggi Province. 'Volatility is expected to increase in the second half of the year due to tariff impacts and growing uncertainty,' the CEO noted, acknowledging the possibility of renewed tariffs from the US under the second Donald Trump administration. The US is ramping up its "reciprocal" tariff strategy and has identified semiconductors as a potential target. As the US accounted for over 70 percent of SK hynix's first-quarter sales, the company could face significant headwinds from such a policy shift. During the January-March period, SK hynix overtook its larger rival Samsung Electronics to secure the top spot in the global DRAM market, backed by its dominance in high bandwidth memory — a key component supporting artificial intelligence processors. According to market tracker TrendForce, SK hynix secured a 36 percent market share with $9.71 billion in revenue in the first quarter, compared to Samsung's $9.1 billion and 33.7 percent share. SK hynix was the first in the industry to mass produce fifth-generation eight-layer HBM3E and 12-layer chips, which are now being supplied to Nvidia, the world's largest graphics processing unit-maker, based in the US. SK hynix has said all its HBM stock for this year has already sold out. The memory chip-maker was also the first to deliver samples of the sixth-generation 12-layer HBM4 chips to major clients including Nvidia, and has begun the validation process. Full-scale mass production of the high-value product is scheduled for the second half of 2024. Lee Sang-rak, executive vice president of global sales and marketing at SK hynix, said the market conditions in the first half of this year were 'very favorable,' and that, the outlook for the second half 'is not pessimistic.' During the meeting, Kwak also addressed internal concerns regarding the company's bonus system. 'There has been criticism that the rules are unclear in how bonuses are given. We will take this opportunity to gather opinions from all levels and create a better system,' Kwak said. On the supply chain front, SK hynix executives reiterated the company's commitment to supply chain diversification. Recently, the company faced tensions with longtime partner Hanmi Semiconductor after introducing Hanwha Semitech as an alternative supplier of the thermal compression bonders used in HBM production. SK hynix has been holding town hall meetings quarterly for the CEO to engage with employees and address key business developments. This week's session was livestreamed to all domestic SK hynix sites.
Yahoo
10-06-2025
- Business
- Yahoo
MU's HBM Revenues Surpass $1 Billion: Will the Momentum Persist?
Micron Technology's MU high bandwidth memory (HBM) chips are experiencing robust traction due to their growing use in high-performance computing, hyperscalers and artificial intelligence data centers. The high demand for these chips has led to Micron's HBM revenues crossing $1 billion in the second quarter of fiscal 2025, marking a major milestone. Since Micron's HBM3E and HBM3E-12H variants offer significant power reduction in comparison to its competitors while also delivering higher memory capacity, customers have already placed a large demand for these products, resulting in Micron being fully sold out of its HBM supply for calendar 2025. The HBMs developed by Micron have a total addressable market estimate of more than $35 billion for the calendar year 2025. Now the company is focusing on HBM delivery agreements for 2026. It is worth noting that the largest AI-chip manufacturer, NVIDIA NVDA, announced in January 2025 that Micron is a key supplier for its GeForce RTX 50 Blackwell GPUs, solidifying Micron's positioning in the HBM market. NVIDIA has installed Micron's HBM3E 8H chips inside the NVIDIA GB200 system and HBM3E 12H chips in NVIDIA GB300. To top it all off, Micron is developing the next generation of high bandwidth memory, HBM4, which will increase the bandwidth by more than 60% compared to HBM3E. The company will ramp the production volume of HBM4 in 2026. With Micron experiencing a sequential surge of 50% in HBM revenues in the second quarter of fiscal 2025, and considering its future plans, it is quite evident that momentum in HBMs will persist. Micron anticipates third-quarter fiscal 2025 revenues of $8.80 billion (+/-$200 million). The Zacks Consensus Estimates for third-quarter fiscal 2025 is pegged at $8.81 billion, indicating year-over-year growth of 29.33%. The global HBM market is highly consolidated, with a handful of players in this space. Companies, including SK hynix, TSMC TSM and Samsung, exist in this space. However, not all of them compete directly against Micron. While SK Hynix and Samsung develop their own HBM2E, HBM3, and HBM3E, TSMC develops HBM packages based on SK Hynix's HBMs. In 2024, SK hynix and TSMC collaborated to collectively develop HBM4 and next-generation packaging technology. This collaboration has led SK hynix to adopt TSMC's foundry process to develop its HBM4, showcased for the first time in April 2025. Since the HBM space has a few capable players and huge growth opportunities, this provides a strong growth opportunity for Micron. Shares of MU have gained 31.8% year to date compared with the Zacks Computer - Integrated Systems industry's growth of 15.1%. Image Source: Zacks Investment Research From a valuation standpoint, MU trades at a forward price-to-sales ratio of 2.84X, lower than the industry's average of 3.53X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MU's fiscal 2025 earnings implies year-over-year growth of 433%, while the 2026 earnings estimate implies growth of 55.87%. The estimates for fiscal 2025 earnings have been revised upward, while the 2026 earnings have been revised downward in the past 60 days. Image Source: Zacks Investment Research MU currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Micron Technology, Inc. (MU): A Bull Case Theory
We came across a bullish thesis on Micron Technology, Inc. (MU) on Daniel Romero's Substack. In this article, we will summarize the bulls' thesis on MU. Micron Technology, Inc. (MU)'s share was trading at $108.56 as of 6th June. MU's trailing and forward P/E were 25.97 and 10.16 respectively according to Yahoo Finance. An engineer in a lab coat examining a state-of-the-art semiconductor chip. Micron Technology is emerging as a pivotal enabler of the AI revolution, thanks to its leadership in high-bandwidth memory (HBM)—a critical component of every AI accelerator. As demand for compute scales exponentially, memory, not compute or foundry capacity, has become the industry's primary bottleneck. HBM, which is essential for AI workloads, is produced by only three firms globally: Samsung, SK Hynix, and Micron. While SK Hynix leads narrowly on speed, Micron has leapfrogged rivals with its HBM3E, offering 50% more capacity per stack and 20% better energy efficiency. This technological edge helped Micron secure key supply roles for NVIDIA's GB200 chips and similar systems from hyperscalers like Google and AMD. The company is already sold out of its HBM capacity through 2025 and is ramping CapEx to address what it calls a multi-year demand inflection. Beyond HBM, Micron is well-positioned across the AI memory stack, including DDR5, GDDR6X, and NAND, all of which are seeing surging demand as AI workloads expand into data centers, PCs, and edge devices. Crucially, Micron is the only U.S.-based player in the HBM oligopoly and is leveraging the CHIPS Act to build the largest chip project in U.S. history, reinforcing its geopolitical and supply chain advantage. Despite this, Micron's stock trades near pre-ChatGPT levels, reflecting cyclical fears and macro uncertainty. Yet, its financials remain strong, with record operating cash flow, rising capital investment, and shareholder returns totaling $4.9 billion. As AI demand grows and memory pricing tightens, Micron's potential rerating offers investors a compelling, asymmetric opportunity with limited downside and long-term upside. Previously, we highlighted a on Micron Technology from Oliver|MMMT Wealth on Substack, which focused on its underappreciated valuation and accelerating growth from AI-related memory demand, particularly as Amazon expands its data centre CapEx. The thesis emphasized Micron's consistent product improvements and its edge over competitors like Samsung. The stock price of MU has appreciated by approximately 54% since then. Micron Technology, Inc. (MU) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held MU at the end of the first quarter which was 94 in the previous quarter. While we acknowledge the risk and potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
29-05-2025
- Business
- Business Insider
AI Boom Pushes Micron Stock (MU) Towards $145 Price Target
When I first invested in Micron (MU) earlier this year, my expectations were optimistic. Although the stock has appreciated to around $95, representing approximately a 30% return since my purchase, I believe this is only the beginning of its potential growth. Future gains are likely to be driven by the expanding opportunities in artificial intelligence. Consequently, I have set a price target of $145 over the next 12 months. Confident Investing Starts Here: While this may appear ambitious, Micron's role as a key supplier of critical memory technologies in the AI sector positions it as a stable, cyclical investment. Micron's business has historically exhibited cyclical characteristics; however, unlike previous cycles, the company has now firmly established itself at the forefront of the AI revolution. With strategic partnerships involving leading industry players such as Nvidia (NVDA) and a strong financial foundation, Micron offers a broader potential return horizon than in the past. Micron's HBM3E Is a Catalyst for AI One of the key reasons I am optimistic about Micron is the rapid growth of High Bandwidth Memory (HBM). AI systems that power platforms like ChatGPT and NVIDIA's latest GPUs require high-performance memory capable of transferring large volumes of data at exceptional speeds. Micron's latest product, HBM3E, meets these demanding requirements and is already being integrated into NVIDIA's flagship AI systems. The advanced speed and performance of HBM3E position Micron at the center of a fast-growing market segment focused on running complex AI models and applications. In fact, Micron has already fully booked its 2025 production capacity for these HBM chips, reflecting robust demand. This is not merely a short-term surge. The HBM market is projected to grow significantly and become a substantial part of overall DRAM sales. Industry analysts estimate HBM will represent approximately 15% of DRAM sales in 2024—about double its share from 2023. Micron anticipates the HBM market will reach over $35 billion by 2025, surpassing earlier projections. This sustained, structural growth driven by AI gives me confidence that Micron is positioned for a long-term growth trajectory rather than a temporary upswing. Strong Financial Performance Underpins the Bull Case Micron's recent financial performance strongly supports my bullish outlook. In the second quarter of Fiscal 2025, the company reported revenues of $8.05 billion, marking a robust 38% year-over-year increase. Earnings per share reached $1.41, reflecting a significant recovery from the previous year and demonstrating solid operational progress and growing demand across business segments. These results exceeded market expectations, indicating strong underlying momentum. Looking ahead, Micron's financial outlook remains promising. Analyst projections anticipate earnings per share to rise substantially from approximately $7 in Fiscal 2025 to around $11 in Fiscal 2026. Even under a more conservative scenario of $8.00 per share in Fiscal 2026, Micron's current valuation at roughly 13 times forward earnings remains attractive given its growth trajectory. Applying a conservative multiple of 18 times forward earnings supports my target price of $145, suggesting meaningful upside potential from current levels. Don't Take Your Eye Off the Ball As with any investment, Micron faces several risks. The memory market is highly competitive, with major players like Samsung (SSNLF) and SK Hynix aggressively pursuing the AI memory segment. SK Hynix, notably NVIDIA's current HBM memory supplier, sets a high standard that Micron is working hard to match. Monitoring the pace of technological advancements remains critical. Geopolitical factors also present significant challenges. Past tensions between the United States and China have resulted in restrictions on Micron's chip sales to China. Any further deterioration in relations or expanded limitations on Micron's access to the Chinese market could negatively impact the company's revenue and profitability, given China's market importance. Lastly, while the current favorable environment for semiconductor memory driven by AI demand is strong, it is likely to eventually give way to oversupply or softened demand, which could pressure Micron's margins and revenues. That said, due to the structural growth driven by AI, I expect the next downturn to be less severe than in previous cycles. What is the Price Target for MU Stock in 2025? On Wall Street, Micron has a consensus Strong Buy rating based on 20 Buys, three Holds, and zero Sells. The average MU stock price target is $124.71, indicating almost 30% upside potential over the next 12 months. Micron (MU) Remains a Cheap Buy In summary, although my Micron investment has already gained around 30%, I remain very optimistic. Micron's strong strategic position in the AI-driven memory market, combined with its financial turnaround and key partnerships with NVIDIA, suggests significant growth potential ahead. The market has yet to fully reflect the earnings growth that AI is likely to generate for Micron in the coming years. While competition and geopolitical risks are real, Micron remains attractively valued. I believe that investors entering at today's price of about $95 have a solid opportunity to achieve strong returns over the next 12 months, despite the usual market fluctuations.
