Latest news with #Micron
Yahoo
18 hours 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
New York Post
a day ago
- Business
- New York Post
Hochul admits New York needs nuclear power — but getting it won't be easy
Good news: Gov. Kathy Hochul has tapped the New York State Power Authority to build the first major new US nuclear power plant in over 15 years. Bad news: New York's history of politicians pandering to anti-nuke hysteria will scare off a lot of potential private 'partners' on building the one-gigawatt plant. After all, it's just four years since then-Gov. Andrew Cuomo forced the early closure of Indian Point — and four decades since then-Gov. Mario Cuomo killed the $6 billion Shoreham nuke plant before it even opened. Hochul has belatedly recognized reality: New York has no hope of coming near meeting any of its clean-energy goals without nuclear power — and indeed is already hard-pressed for enough generating capacity to meet the natural growth in electric demands. For example, Micron's New York semiconductor plant will require massive amounts of reliable electricity, potentially 1.85 gigawatts at full capacity — enough to power half a million homes. The windmills and solar power plants pushed by the state Climate Action Plan can never meet that need. Yet nuke plants take a long time to build, and getting the state-of-the-art modular reactor Hochul envisions is a lot harder than calling for it. The Cuomos' anti-nuke actions — Long Islanders are still paying for Shoreham, while Indian Point had supplied 25% of the electricity needed for the city and Westchester — ensure that any company will demand a huge risk premium before investing a dime in building a nuke plant in the Empire State. Which is why Hochul left the door open to the Power Authority footing the bills itself — without mentioning this means taxpayer support and/or stiff new fees on utility bills. She also didn't mention that, since any new nuclear plant is 15 or so years off, the state's going to need new carbon-fueled power plants in the meantime, pushing the Climate Act's goals even further out of reach. Consider it all just a few more reasons we all have the Cuomo clan to thank for a huge chunk of New York's deep 'affordability' problems.
Yahoo
a day ago
- Business
- Yahoo
Analysts raise Micron stock price target, send warning
Analysts raise Micron stock price target, send warning originally appeared on TheStreet. Artificial intelligence. Can you escape it? It is getting increasingly more difficult, especially for businesses. They are all thinking about how they can use AI to make more money. I wouldn't be surprised to see "AI powered" cereal at this point, whatever that means. I just did a search for this, with Brave search, and the first result was: "Cereal Creator Pro-Free AI-Powered Cereal Box Design." Many companies feel pressured to find some use for the technology, and this pressure grows the data center and supercomputer markets because very powerful computers are needed to train the AI.A domino effect of this AI wave is increased demand for high-bandwidth memory (HBM) chips, which are indispensable to the AI market. GPUs that power AI systems are becoming increasingly powerful, but they are bottlenecked by memory bandwidth. HBM provides the bandwidth necessary to leverage these powerful processors most effectively and efficiently. According to Gartner, HBM revenue is projected to grow from $1.1 billion in 2022 to $5.2 billion in 2027. Micron Technology is one of the manufacturers of HBM that stands to profit from this AI boom. Micron () recently announced plans to expand its U.S. investments to approximately $150 billion in domestic memory manufacturing and $50 billion in research and development. On June 25th, Micron reported its results for Q3 of fiscal 2025. Here are the highlights: Revenue of $9.30 billion versus $8.05 billion for the prior quarter and $6.81 billion for the same period last year Gross margin of $3.5 billion or 37.7% of revenue compared to $1.8 billion or 26.9% of revenue in Q3 2024. Net income of $1.89 billion, or $1.68 per diluted share, compared to $332 million, or $0.30 per diluted share, in Q3 company provided an outlook for Q4 of fiscal year 2025: Revenue of $10.7 billion ± $300 million Gross margin of 41.0% ± 1.0% Diluted earnings per share $2.29 ± $0.15 "In fiscal Q3, DRAM revenue reached a new record driven by a nearly 50% sequential growth in HBM revenue. We remain the sole supplier in volume production of LPDRAM in the data center," said Sanjay Mehrotra, chairman, president, and CEO of Micron during the earnings call. More technology stocks Amazon tries to make AI great again (or maybe for the first time) Veteran portfolio manager raises eyebrows with latest Meta Platforms move Google plans major AI shift after Meta's surprising $14 billion move "In NAND, we achieved a new quarterly record for market share across data center SSDs as well as client SSDs in calendar Q1. For the first time ever, during calendar Q1, Micron has become the number two brand by share in data center SSDs according to third-party data," continued Mehrotra. Following the earnings report, Bank of America analyst Vivek Arya and his team updated their opinion on Micron shares. "We rate Micron Neutral. The company benefits from several secular trends in the data center and cloud computing markets, particularly in AI (high-bandwidth memory and data center-grade DRAM and SSDs). However, we see muted near-term memory pricing environment on lackluster PC/phone demand, putting pressure on [gross margins] for the foreseeable future," said the Arya and his team noted some key risks facing Micron: Larger than expected decline in the average selling price of memory. Greater competition from China newcomers. Share loss to large competitors. Softening of demand across major end markets such as data centers, smartphones, or PCs. NAND pricing and start-up costs impact on gross margins. According to Bloomberg Intelligence Micron's HBM market share in 2033 is expected to grow to 23%. SK Hynix is expected to drop from about 50% to 40% market share and Samsung is to be at 35%. In May 2024 Reuters reported that Huawei is aiming to produce HBM2 chips in partnership with other China companies by 2026. The same report said that two Chinese chipmakers are in the early stages of producing HBM. Micron's outlook for Q4 shows a sequential jump in revenue that seems a bit modest compared to the expected HBM demand growth due to the AI wave. Analysts set the target price at $140, based on a 2.3 multiple of their estimate for the price-to-book ratio for the calendar year 2026, which is in the upper range of Micron's long-term range of 0.8 to 3.1, and they believe we are potentially in the memory raise Micron stock price target, send warning first appeared on TheStreet on Jun 27, 2025 This story was originally reported by TheStreet on Jun 27, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Buy Micron Technology (MU) Stock for AI Growth After Record Quarterly Sales?
Reporting strong results for its fiscal third quarter on Wednesday evening, Micron Technology MU is at the top of an expansive list of companies that are experiencing AI-driven growth thanks to high demand for semiconductor memory solutions. Along with other major players in the semiconductor and memory chip space, such as Marvell Technology MRVL and Qualcomm QCOM, Micron is benefiting from the growing demand for high-performance computing components for AI, data centers, and mobile devices. Seeing sales of AI-related products more than double, Micron's Q3 sales came in at a quarterly record $9.3 billion. This was a 37% increase from Q3 sales of $6.81 billion in the comparative quarter and comfortably exceeded estimates of $8.83 billion by 5.27%. Micron's high-bandwidth memory (HBM) business stood out, with sales of $1.5 billion marking nearly 50% sequential growth, fueled by demand for AI computing applications. HBM sales helped drive record DRAM (Dynamic Random-Access Memory) revenue of $7.1 billion, as Data Center-specific revenue more than doubled from the surge in memory demand for AI workloads. Image Source: Zacks Investment Research On the bottom line, Micron's Q3 earnings skyrocketed 208% to $1.91 per share ($2.18 billion) from EPS of $0.62 a year ago and crushed expectations of $1.59 a share by 20%. Improved pricing and product mix were the main drivers, with Micron vanquishing a 39% gross margin, compared to 28% in the prior year quarter. Other noteworthy highlights included a six-year peak in free cash flow at $1.95 billion. Image Source: Zacks Investment Research Supported by AI momentum, Micron CEO Sanjay Mehrotra stated the company is on track to deliver record revenue for the full fiscal year. Notably, Micron expects Q4 sales to be $10.7 billion (+/-$300 million), which came in above the current Zacks Consensus of $9.9 billion. Even better, Micron's forecast for Q4 EPS of $2.50 (+/- 15 cents) was well above expectations of $2.02. There was a lot to like about Micron's strong Q3 results, and there could very well be more upside for MU shares, which are up nearly +50% this year. However, following such an extensive year-to-date rally, Micron stock currently lands a Zacks Rank #3 (Hold). To that point, more upside will largely depend on what will hopefully be a positive trend of earnings estimate revisions (EPS) in the coming weeks, given Micron's AI growth and reassuring guidance. 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 QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Globe Life Stock: Is GL Outperforming the Financial Sector?
Globe Life Inc. (GL), with a market cap of $10.1 billion, is an insurance holding company based in McKinney, Texas. It offers a range of life insurance, supplemental health insurance products, and annuities, primarily targeting lower-middle- and middle-income families. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks and Globe Life fits this description perfectly. Its diversified product mix, encompassing life insurance, supplemental health, and annuities, provides consistent revenue streams. The company benefits from a multi-channel distribution model, including direct-to-consumer, agencies, and worksite marketing, which enhances reach and flexibility. Additionally, its disciplined underwriting, strong return on equity, and solid investment portfolio contribute to its long-term financial resilience and profitability. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? Dear Micron Stock Fans, Mark Your Calendars for June 25 Warren Buffett Warns 'Thumbsucking' is 'the Cardinal Sin' in Business Because It's 'Delaying the Correction of Mistakes' Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The stock is currently trading 9.2% below its 52-week high of $133.76 recorded on Apr. 2. Globe Life shares have plunged 6.5% over the past three months, underperforming the Financial Select Sector SPDR Fund's (XLF) 1.9% rise over the same time frame. Globe Life has delivered strong long-term performance, with its shares up 8.9% year-to-date, outpacing the XLF, which rose 6.4%. Over the past 52 weeks, GL has surged 45.4%, significantly outperforming XLF's 24.5% gain. Technically, the stock has maintained momentum, trading above its 200-day moving average since mid-September and recently staying above its 50-day moving average as well. On April 30, Globe Life reported its Q1 results, and its shares dipped over 4% in the next trading session as results fell slightly short of market expectations. Revenue rose 5% year-over-year to $1.48 billion, while net operating EPS increased 10% to $3.07, supporting a solid 19% return on equity. The company continued to reward shareholders, repurchasing 1.5 million shares for $177 million, and reaffirmed its full-year net operating EPS guidance of $13.45–$14.05. Despite the strong fundamentals, the modest earnings miss weighed on investor sentiment. In addition, when compared, rival Lincoln National Corporation (LNC) fell behind GL. LNC has advanced 3.9% in 2025 and 3.1% over the past 52 weeks. Among the 11 analysts covering the stock, the consensus rating is 'Moderate Buy,' and its mean price target of $145 implies a potential 19.4% upswing from the current market price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
