Latest news with #MicronTechnology
Miami Herald
14 hours 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.
Yahoo
14 hours ago
- Business
- Yahoo
Should You Buy Micron Technology Stock Before June 25?
Micron Technology is a leading supplier of memory and storage chips for data centers, computers, and smartphones. Micron's HBM3E memory was selected by Nvidia to power its Blackwell and Blackwell Ultra AI data center chips. Micron will report its latest quarterly financial results on June 25, and strong revenue and earnings growth might be on the table. 10 stocks we like better than Micron Technology › The semiconductor industry is the beating heart of the artificial intelligence (AI) revolution, because most development happens in large data centers that are filled with thousands of graphics processing units (GPUs) from chipmakers like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). Micron Technology (NASDAQ: MU) is another leading chip company, but it doesn't supply GPUs, so it receives less attention than the likes of Nvidia. Instead, Micron makes memory and storage chips, which are becoming extremely important for processing AI workloads, not only in data centers, but also in computers and smartphones. Micron is scheduled to release its financial results for its fiscal 2025 third quarter (which ended on May 30) on June 25, and the company's guidance suggests the report could reveal substantial growth at the top and bottom line, driven by AI. Should investors buy the stock ahead of the release? GPUs are ideal for AI workloads because they are designed for parallel processing, meaning they can handle multiple tasks at once with a high degree of efficiency. But GPUs need memory to store data in a ready state, so it can be called upon at a moment's notice to speed up processing time. Micron's HBM3E (high-bandwidth memory) for the data center is the best in the industry. In fact, Nvidia selected it to power its latest Blackwell and Blackwell Ultra GPUs, which are designed for next-generation "reasoning" AI models. These models require significantly more computing power and memory than traditional large language models (LLMs), because they spend more time thinking in the background to craft the most accurate responses for users. Micron expects the market for data center HBM to double to $35 billion this year, and then grow to $100 billion by 2030. The company is already completely sold out of HBM3E until 2026, and it's now working on HBM4E to stay ahead of the competition. This new solution will launch next year, and it could deliver a whopping 60% more bandwidth than its predecessor. But memory is also a critical component in computers and smartphones -- even more so now that some smaller AI workloads are designed to be processed on-device. In other words, chips are becoming powerful enough to run some AI applications (like chatbots) offline, so they don't need to lean on any computing power from external data centers. As a result, Micron says the minimum DRAM (memory) requirement in an AI personal computer is now 16 gigabytes, up from 12 gigabytes last year for non-AI computers. AI-enabled smartphones have also experienced a jump in memory demand to 12 gigabytes, compared to 8 gigabytes for their non-AI counterparts. During the fiscal 2025 second quarter (ended Feb. 27), Micron generated $8.1 billion in total revenue, which was a 38% increase from the year-ago period. That included $4.6 billion in compute and networking revenue -- where the company accounts for its data center memory sales -- which was up by a whopping 109%. Micron likely had another very strong three-month stretch in the third quarter of fiscal 2025, the results of which will be announced on June 25. The company forecast around $8.8 billion in revenue, which would be a 29% increase from the year-ago quarter. Management didn't offer any specific guidance for the compute and networking segment, but it has been the main driver of Micron's consistent strength over the past year, and that was likely the case again in Q3. Micron's surging revenue is also driving strong growth at its bottom line. The company delivered $1.56 in non-GAAP (generally accepted accounting principles) earnings per share (EPS) during the second quarter, a 271% increase from the year-ago period. Management's guidance suggests non-GAAP EPS came in at around $1.37 in Q3, which would be up 121% year over year. Based on Micron's $5.15 in trailing-12-month EPS, its stock is trading at a price-to-earnings (P/E) ratio of just 23.3. That makes it much cheaper than Nvidia stock, which trades at a P/E ratio of 45.7. Since Micron's HBM3E is embedded into Nvidia's most powerful GPUs, investors who believe Nvidia's AI chip sales will continue to soar should also hold a positive view of Micron's business from here. Back in March, Nvidia CEO Jensen Huang said his company already had orders for 3.6 million Blackwell GPUs from just four customers alone, which suggests Micron's data center business could boom for the foreseeable future. Therefore, Micron's success won't hinge on any single quarter. I think the stock could be a great buy right now based on its valuation and the demand pipeline for its memory chips, irrespective of the upcoming June 25 report. As long as investors are willing to hold the stock for the long term, they give themselves a good chance to earn a positive return. Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Micron Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Should You Buy Micron Technology Stock Before June 25? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
UBS Raises Price Target on Micron (MU), Keeps Buy Rating
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, UBS analysts increased the price target for Micron Technology, Inc. (NASDAQ:MU) from $92 to $120 and kept a 'Buy' rating. This decision came after a round of industry checks that showed a more stable demand environment for DDR across various end markets. This stability is supported by not only smartphones and PCs, but also by increased demand for server DDR5 from hyperscalers. UBS analysts expect the average selling price of DDR to increase by 7% in the second quarter and by 3% in the third quarter. The analysts did not change the price expectations for NAND, but they pointed out that if suppliers keep their supply disciplined, it could have a positive impact. A close-up view of a computer motherboard with integrated semiconductor chips. Additionally, UBS adjusted its forecast for High Bandwidth Memory (HBM) demand while noting that the ramp-up of AI chips like Google's TPU v6e/v7 and AWS's Trainium 3 is slower than expected. UBS analysts expect industry demand of about 16.3 billion gigabits of HBM in 2025 and 25.4 billion gigabits in 2026. Micron Technology, Inc. (NASDAQ:MU) is expected to ship its HBM3E 12-Hi to NVIDIA in June, which is later than the previously expected time of April or May. UBS analysts believe this delay will only have a limited impact on the company's topline. However, they think Micron Technology, Inc. (NASDAQ:MU) could grow if the market becomes more confident in the company's earnings potential for 2026 and later. Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. 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
4 days ago
- Business
- Yahoo
UBS Raises Price Target on Micron (MU), Keeps Buy Rating
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, UBS analysts increased the price target for Micron Technology, Inc. (NASDAQ:MU) from $92 to $120 and kept a 'Buy' rating. This decision came after a round of industry checks that showed a more stable demand environment for DDR across various end markets. This stability is supported by not only smartphones and PCs, but also by increased demand for server DDR5 from hyperscalers. UBS analysts expect the average selling price of DDR to increase by 7% in the second quarter and by 3% in the third quarter. The analysts did not change the price expectations for NAND, but they pointed out that if suppliers keep their supply disciplined, it could have a positive impact. A close-up view of a computer motherboard with integrated semiconductor chips. Additionally, UBS adjusted its forecast for High Bandwidth Memory (HBM) demand while noting that the ramp-up of AI chips like Google's TPU v6e/v7 and AWS's Trainium 3 is slower than expected. UBS analysts expect industry demand of about 16.3 billion gigabits of HBM in 2025 and 25.4 billion gigabits in 2026. Micron Technology, Inc. (NASDAQ:MU) is expected to ship its HBM3E 12-Hi to NVIDIA in June, which is later than the previously expected time of April or May. UBS analysts believe this delay will only have a limited impact on the company's topline. However, they think Micron Technology, Inc. (NASDAQ:MU) could grow if the market becomes more confident in the company's earnings potential for 2026 and later. Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor technology company that is known for its innovative memory and storage solutions. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. 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
4 days ago
- Business
- Yahoo
Wells Fargo Remains Bullish on Micron Technology (MU) With a $130 PT
Micron Technology, Inc. (NASDAQ:MU) is one of the . Analyst Aaron Rakers from Wells Fargo maintained a Buy rating on Micron Technology, Inc. (NASDAQ:MU) on June 11, keeping the price target at $130.00. The analyst based the rating on the company's market positioning and advancements, stating that its recent announcement of the start of sample shipments of 36GB HBM4 12-High to key customers reflects a continuous and focused execution of the technology roadmap. A close-up view of a computer motherboard with integrated semiconductor chips. The analyst reasoned that this new product leverages the company's advanced 1-beta DRAM process, providing notable performance enhancement and power efficiency improvements compared to the previous generations. Micron Technology, Inc. (NASDAQ:MU) also has a strategic focus on customizing logic base die with HBM4E+ and expanding the HBM:DDR5 trade ratio, factors that the analyst considers strong indicators of growth in the high-bandwidth memory market. The analyst further reasoned that Micron Technology, Inc. (NASDAQ:MU) underwent significant revenue growth in its HBM segment in fiscal Q2 2025, exceeding $1 billion and suggesting continued growth in the upcoming quarters. Micron Technology, Inc. (NASDAQ:MU) provides innovative memory and storage solutions. Its operations are divided into the following segments: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
