Latest news with #DRAM
Yahoo
20 hours ago
- Business
- Yahoo
Rosenblatt Securities Raises Micron's Price Target to Street-High of $200, Reiterates Buy Rating
Micron Technology, Inc. (NASDAQ:MU) is one of the . On June 26, Rosenblatt Securities raised the price target on MU from $172 to a Street-high of $200, reiterating a Buy rating on the stock. Kevin Cassidy from Rosenblatt Securities raised the price target on Micron Technology, Inc. (NASDAQ:MU) following strong Q3 2025 results. The company's revenue hit a quarterly record of $9.3 billion, up 37% year-over-year, and surpassed consensus by almost $450 million. The strong revenue was driven by ongoing strength in data center markets and robust quarter-over-quarter growth across consumer-facing segments. The company saw a record-high DRAM revenue, with almost 50% sequential growth in HBM sales. Micron's adjusted gross margin soared to 39% in Q3, while the adjusted earnings of $1.91 surpassed consensus by $0.31. Manczurov/ 'The combination of AI applications driving DRAM demand and Micron's leading power efficiency drove revenue, gross margin, operating margins, and profits well above Street expectations,' said Cassidy. 'Outlook is for more of the same. With DRAM wafer capacity expansion over 18 months away, we see this cycle driving Micron's income model to all-time highs. We continue recommending MU shares for the relatively low valuation, 12x fP/E, strong balance sheet, expanding margins, and earnings leverage.' Micron Technology now expects Q4 FY2025 to post similar results with an equally upbeat outlook. The revenue for the ongoing quarter is expected to be around $10.4 billion and $11 billion. Micron Technology, Inc. (NASDAQ:MU) is a leading player in the AI industry as the company develops high-performance memory and storage solutions, such as DRAM and NAND. These are important devices used for running and training AI models across data centers, consumer electronics, and edge devices. 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. 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
5 days ago
- Business
- Yahoo
Is Micron (MU) the Next Big Winner in AI Memory? Analysts Think So
Micron Technology, Inc. (NASDAQ:MU) is one of the . On June 26, UBS raised the firm's price target on the stock to $155 from $120 and kept a 'Buy' rating on the shares. In a research note, the analyst told investors how Micron has delivered HBM revenue and gross margin that met or slightly exceeded investor expectations. 'MU delivered against the only real investor expectations we heard into the call – HBM [high bandwidth memory] revenue and gross margin, both of which were in-line to a little better than bogeys.' A close up of a circuit board, its microchips creating a powerful computing system. The company also boasts a strong financial position as demonstrated by its robust liquidity. With HBM becoming an important part of the DRAM business, it represents 6-7% of DRAM bits. However, they take up around 19-20% of production space as per UBS estimates, which is why Micron focuses on selling these chips to higher-value markets. UBS believes that the supply-constraint dynamics will stay until 2026, until Micron and its peers install new manufacturing capacity. The firm thinks this will be done 'carefully and strategically' in order to maintain favorable market conditions. Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide. 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: 10 AI Stocks in the Spotlight and . 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
6 days ago
- Business
- Yahoo
Micron Surges on Record Q3 Revenue; AI Demand Lifts Outlook
Micron (MU, Financials) reported record third-quarter revenue of $9.3 billion Wednesday; the 37% year-over-year jump was powered by demand for AI-driven memory products, especially in the data center segment. DRAM sales made up 76% of total revenue at $7.1 billion; high-bandwidth memory also surged nearly 50% sequentially. Warning! GuruFocus has detected 7 Warning Sign with MU. The company posted adjusted EPS of $1.91; analysts had expected $1.60. Margins widened to 39%, reflecting stronger operational execution. Looking ahead, Micron guided for Q4 revenue between $10.4 and $11.0 billion; EPS is expected to land between $2.35 and $2.65well above Wall Street forecasts. Free cash flow came in at $1.95 billion; HBM4 chips are now in development for 2026. Management pointed to tight DRAM supply and improving NAND inventory as tailwinds; analysts cautioned, however, that tariff-related stockpiling could skew future results. This article first appeared on GuruFocus. 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
Miami Herald
26-06-2025
- Business
- Miami Herald
Analysis: SK Group becomes most profitable conglomerate in Korea
June 26 (UPI) -- SK Group has emerged as the most profitable conglomerate in South Korea thanks to the stellar performance of its key affiliate SK hynix, the world's No. 2 memory chipmaker. According to Seoul-based business tracker CXO Institute on Wednesday, SK Group's subsidiaries recorded $20 billion in operating profit last year, surpassing Samsung Group's $19.9 billion. This means that Samsung Group, a perennial leader in profitability, has now failed to claim the top spot for two consecutive years. In 2023, Hyundai Motor Group led the rankings for operating income. "Throughout last year, SK hynix single-handedly carried SK Group. And the trend is expected to continue this year, which means SK Group may become the most profitable company for two straight years," CXO Institute chief Oh Il-sun told UPI. Lee Phil-sang, an adviser at Aju Research Institute of Corporate Management and former Seoul National University economics professor, echoed that view. "Samsung Electronics is putting forth great efforts to catch up in next-generation chips, but it will take some time. SK hynix is projected to be more profitable than Samsung Electronics this year," he said in a phone interview. Driven by the booming sales of high-bandwidth memory (HBM) chips, which are used for AI applications or supercomputers, SK hynix delivered record-breaking profits in 2024. Its operating profit reached $17 billion, accounting for 85% of SK Group's total, a dramatic turnaround from its $5.68 billion operating loss in 2023. In the first quarter of this year alone, SK hynix chalked up $5.48 billion in operating profit. Based on the impressive results, the company's market capitalization topped $150 billion this week for the first time, trailing only Samsung Electronics' $262 billion. The latter is the world's largest manufacturer of memory chips and smartphones. Despite SK's current edge, some watchers believe that Samsung Group may reclaim the top position this year as the prices of DRAM, a major product of Samsung Electronics, show signs of recovery. "From the third quarter, technology and sales are expected to gradually normalize," Daishin Securities analyst Ryu Hyung-keun noted in a recent report. "While it won't be easy to restore technological competitiveness in a short period, the strategic shift should begin to yield signs of improvement in the second half." Samsung Electronics posted $4.9 billion in operating profit during the first three months of 2025, up 1.2% year-on-year. When it comes to 2024 sales, Samsung Group was the runaway leader with $294 billion, far ahead of $215 billion of Hyundai Motor Group and $152 billion of SK Group. Samsung Group also led in employment as more than 280,000 workers were on its payroll, compared to around 200,000 for Hyundai Motor Group and 150,000 for LG Group. In terms of per-capita turnover, Mirae Asset Group was atop the list with $2.7 million. It is one of the biggest financial conglomerates here, focusing on asset management, brokerage, investment banking, and insurance. "We can say that Mirae Asset workers generated the largest added values on average last year. In other words, the group wins out in efficiency," CXO Institute's Oh said. By contrast, LG Group struggled to find its feet last year as the outfit failed to remain profitable. The Seoul-based group logged $392 million in operating loss, up 38% from a year before. "LG Group has been languishing because its main unit LG Energy Solution faced a double whammy of the electric car chasm and the intensifying competition from Chinese players," said economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea. "The group should address both issues to rebound, which is not an easy task," he added. The term EV chasm refers to the weaker-than-expected demand for electric cars in recent years due to the gap between early adopters and mass market consumers. LG Energy Solution is one of the world's foremost EV battery producers. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
26-06-2025
- Business
- UPI
Analysis: SK Group becomes most profitable conglomerate in Korea
South Korea's SK Group, led by Chairman Chey Tae-won, became South Korea's most profitable conglomerate, according to business tracker CXO Institute. File Pool Photo by Yonhap/EPA-EFE June 26 (UPI) -- SK Group has emerged as the most profitable conglomerate in South Korea thanks to the stellar performance of its key affiliate SK hynix, the world's No. 2 memory chipmaker. According to Seoul-based business tracker CXO Institute on Wednesday, SK Group's subsidiaries recorded $20 billion in operating profit last year, surpassing Samsung Group's $19.9 billion. This means that Samsung Group, a perennial leader in profitability, has now failed to claim the top spot for two consecutive years. In 2023, Hyundai Motor Group led the rankings for operating income. "Throughout last year, SK hynix single-handedly carried SK Group. And the trend is expected to continue this year, which means SK Group may become the most profitable company for two straight years," CXO Institute chief Oh Il-sun told UPI. Lee Phil-sang, an adviser at Aju Research Institute of Corporate Management and former Seoul National University economics professor, echoed that view. "Samsung Electronics is putting forth great efforts to catch up in next-generation chips, but it will take some time. SK hynix is projected to be more profitable than Samsung Electronics this year," he said in a phone interview. Driven by the booming sales of high-bandwidth memory (HBM) chips, which are used for AI applications or supercomputers, SK hynix delivered record-breaking profits in 2024. Its operating profit reached $17 billion, accounting for 85% of SK Group's total, a dramatic turnaround from its $5.68 billion operating loss in 2023. In the first quarter of this year alone, SK hynix chalked up $5.48 billion in operating profit. Based on the impressive results, the company's market capitalization topped $150 billion this week for the first time, trailing only Samsung Electronics' $262 billion. The latter is the world's largest manufacturer of memory chips and smartphones. Despite SK's current edge, some watchers believe that Samsung Group may reclaim the top position this year as the prices of DRAM, a major product of Samsung Electronics, show signs of recovery. "From the third quarter, technology and sales are expected to gradually normalize," Daishin Securities analyst Ryu Hyung-keun noted in a recent report. "While it won't be easy to restore technological competitiveness in a short period, the strategic shift should begin to yield signs of improvement in the second half." Samsung Electronics posted $4.9 billion in operating profit during the first three months of 2025, up 1.2% year-on-year. When it comes to 2024 sales, Samsung Group was the runaway leader with $294 billion, far ahead of $215 billion of Hyundai Motor Group and $152 billion of SK Group. Samsung Group also led in employment as more than 280,000 workers were on its payroll, compared to around 200,000 for Hyundai Motor Group and 150,000 for LG Group. In terms of per-capita turnover, Mirae Asset Group was atop the list with $2.7 million. It is one of the biggest financial conglomerates here, focusing on asset management, brokerage, investment banking, and insurance. "We can say that Mirae Asset workers generated the largest added values on average last year. In other words, the group wins out in efficiency," CXO Institute's Oh said. By contrast, LG Group struggled to find its feet last year as the outfit failed to remain profitable. The Seoul-based group logged $392 million in operating loss, up 38% from a year before. "LG Group has been languishing because its main unit LG Energy Solution faced a double whammy of the electric car chasm and the intensifying competition from Chinese players," said economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea. "The group should address both issues to rebound, which is not an easy task," he added. The term EV chasm refers to the weaker-than-expected demand for electric cars in recent years due to the gap between early adopters and mass market consumers. LG Energy Solution is one of the world's foremost EV battery producers.
