Latest news with #MicronTechnology
Yahoo
14 hours ago
- Business
- Yahoo
Are These Volatile AI Stocks Worth Buying Now?
Volatile stock prices can help you buy shares of quality growth stocks at attractive valuations. Micron stock has been highly volatile this year, but the shares trade at just 11 times next year's earnings expectations. Arm-based chips are being increasingly used in AI servers, but the stock continues to look very pricey. 10 stocks we like better than Micron Technology › The growing adoption of artificial intelligence is driving tremendous growth for the semiconductor industry. But demand for chips can be cyclical, which can lead to volatility for many of these stocks. It's important to understand that wild swings in share prices don't tell you anything about the long-term direction of the business. Volatility can be a long-term investor's friend, providing the opportunity to buy competitively positioned companies at attractive valuations. Two of the most volatile stocks in the chip industry over the past year have been Micron Technology (NASDAQ: MU) and Arm Holdings (NASDAQ: ARM). These high-growth businesses are meeting the growing demand for AI infrastructure in data centers and other products. Here's why they may, or may not be, smart buys right now. Investors have a lot of choices to profit off the investment in AI infrastructure. There is tremendous demand for everything from chips, networking, and liquid-cooled servers. But for Micron Technology, the need for more high-bandwidth memory and solid-state storage (SSD) to enable faster data processing and retrieval is a huge opportunity. The memory market is competitive, which historically led Wall Street to focus on the cyclical swings in selling prices and supply that create volatility in Micron's financials. But if you had just bought and held the stock 10 years ago, your investment would be up 540%. Micron could easily repeat that performance in the coming years. The opportunity to meet the surging investment in AI infrastructure is driving record revenue for Micron in 2025. Revenue grew 37% year over year last quarter, driven by nearly 50% quarter-over-quarter growth in high-bandwidth memory products. Overall, Micron's sales to data centers more than doubled over the year-ago quarter. However, the stock is trading at 16 times this year's earnings estimate and just 10 times next year's earnings. These modest earnings multiples indicate that Wall Street is underestimating the sustainability of Micron's growth. It's possible that Micron's revenue over the next several years could be smoother than the lumpy results in recent years. Micron CEO Sanjay Mehrotra noted that the business is on track for record revenue and solid profitability in fiscal 2025. The company is also gaining momentum with its SSD business, gaining share on competitors to become the No. 2 player in the market. As more advanced AI workloads kick in, data centers will need memory technology for faster data processing speeds and better energy efficiency to control computing costs. Micron's growth suggests that it is meeting this need. With Dell'Oro Group forecasting $1 trillion in annual data center spending by 2029, up from the recent $260 billion spent in 2023, Micron could be reporting more record revenue in the years to come. Its relatively modest P/E multiple doesn't reflect this possibility, making the stock a compelling long-term investment. I would consider buying shares. Teaching computer models to think more like humans will continue to require substantial investment in greater processing power. Arm is a leader in designing and licensing central processing units (CPUs) to other chip companies and product manufacturers. In fact, you're probably reading this on a device powered by an Arm-based processor. Arm's chip designs are everywhere, including 99% of smartphones sold globally, but it also has an increasing share of chips being used in data centers. Its market share in cloud computing, automotive, and other markets has been steadily increasing every year. Its revenue, which comes from licensing and royalties, grew 34% year over year last quarter to over $1.2 billion. Leading tech companies, including Nvidia, Amazon, Alphabet's Google, and Microsoft, are using Arm-based chips. Nvidia's Grace Blackwell CPU for data centers is an Arm-based design, while Amazon, Google, and Microsoft are using its chip technology to power cloud services for their customers. Arm's expertise in building chips that offer superior energy efficiency positions it well for strong growth in a market that can't get enough computing power. The U.K.-based company expects up to 50% of new server chips to be Arm-based this year. This is pointing to excellent growth prospects for Arm Holdings. The reason the stock has been so volatile over the last year can be attributed to its high valuation. Arm's lucrative business of designing chips and collecting royalties on every chip shipped using its technology is well reflected in the stock right now, which is trading at 88 times this year's earnings estimate. The stock hasn't hit a new high since reaching $188.75 in July 2024, and it may need to settle for a while longer to bring its valuation closer to other leading chip stocks. For example, Nvidia, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing are each growing earnings at about the same rate, or faster, than Arm but trade at much lower earnings multiples. All of these stocks, including Micron, offer investors a more attractive growth-to-value profile, and therefore offer a better opportunity for market-beating returns. I would pass on Arm stock for now. 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 $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% 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 23, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Are These Volatile AI Stocks Worth Buying Now? was originally published by The Motley Fool 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
a day ago
- Business
- Yahoo
Jim Cramer Notes Micron Reported a 'Pretty Good Number'
Micron Technology, Inc. (NASDAQ:MU) is one of the 13 stocks Jim Cramer recently shed light on. Cramer said that the company reported a 'pretty good number,' as he remarked: 'Fourth group of winners, the semis. There are lots of overlaps with the data center, okay…. There are plenty of semiconductor and semiconductor capital equipment stocks that are on fire. There's Texas Instruments, NXP Semi, Applied Materials, KLA… You know what, Lam Research, gotta put them in too. Don't forget Micron, which reported a pretty good number this very evening.' A close-up view of a computer motherboard with integrated semiconductor chips. Micron (NASDAQ:MU) develops and sells memory and storage solutions, including DRAM and NAND products, under its own and private-label brands. The company's technologies support high-speed data access and are used across data centers, mobile, PC, automotive, and embedded applications. During a May episode, when a caller inquired about the company, Cramer replied: 'I think it is getting a little toppy. I think the market's getting a little toppy and Micron's going to go with it. Now, it went down to 66. I think it could go down to 80 without a problem, and then you'll probably want to buy it again. But I sense that there is a trade here, not an investment, for the moment, and you need to do a little [kaching kaching].' 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. 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
BusinessToday
a day ago
- Business
- BusinessToday
KLCI May Continue To Trend Higher With Resistance Level At 1,540
Asian markets mostly closed higher, buoyed by hopes that the US-brokered Israel-Iran ceasefire would hold, which also contributed to a decline in oil prices. Sentiment across the region was further boosted by a mildly dovish tone from US Federal Reserve Chairman Jerome Powell, echoing earlier remarks from Fed officials Waller and Bowman, which kept the possibility of a July rate cut in play, contingent on inflation trends and rising labour market risks. United States Market: In the US, the Dow Jones Industrial Average slipped 107 points, experiencing profit-taking after rallying 917 points over the past three consecutive sessions. Investors weighed the progress of the Middle East ceasefire against Powell's cautious congressional remarks. Powell indicated that tariff-driven inflation is manageable but reaffirmed that the Fed is not yet ready to cut rates despite political pressure. Economic data from the US showed new home sales falling to their lowest level since October 2024, impacted by high mortgage rates. Markets are now looking ahead to the release of durable goods data on June 26 and the core Personal Consumption Expenditures (PCE) reading on June 27. After market hours, Micron Technology (MU) gained 0.9% on strong earnings and outlook. Malaysian Market Performance: mirroring positive trends in Wall Street and regional markets, Malaysia's FBM KLCI gained 5.5 points to close at 1,519.8. Market breadth remained positive, indicating more advancing stocks than declining ones. Trading volume stood at 3.15 billion shares, a 15% increase compared to the June month-to-date (MTD) average of 2.74 billion shares. The total trading value reached RM2.27 billion, up 7.6% from the June MTD average of RM2.11 billion, signaling underlying market strength. Local institutions resumed their net buying, adding RM110 million (June MTD: +RM1.78 billion; Year-to-Date (YTD): +RM10.56 billion). In contrast, foreign funds continued their net outflows, recording -RM51 million today after a brief RM5 million nibble a day ago (June MTD: -RM1.50 billion; YTD: -RM12.33 billion). Retail investors also registered net outflows of -RM59 million (June MTD: -RM279 million; YTD: +RM1.77 billion). The KLCI is trending higher, with HLIB noting that major resistance levels are identified at 1,523, 1,532, and 1,540. Related
Yahoo
2 days ago
- Business
- Yahoo
Is Micron Stock Still a Buy After a 50% YTD Surge?
Micron Technology (MU) is benefiting from the rise of artificial intelligence (AI) and other compute-intensive technologies, which have driven demand for its high-performance memory and storage solutions higher. Thanks to AI tailwinds, shares of this semiconductor company have gained nearly 50% year-to-date. Despite the significant run, shares of this semiconductor company still have room to climb, supported by its solid growth trajectory, new product launches, and a valuation that remains reasonable. Dear Nvidia Stock Fans, Watch This Event Today Closely 3 ETFs Offering Juicy Dividend Yields of 15% or Higher A $2 Billion Reason to Sell Super Micro Computer Stock Now Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! As high-performance memory and storage become increasingly critical to enabling AI-driven innovation, Micron is shifting more resources to AI-focused opportunities across its portfolio. This will drive significant improvements in its top and bottom lines and expand its valuation multiples. Notably, Micron recently posted strong Q3 financial results. In the third quarter of fiscal 2025, Micron posted record revenue from data center DRAM. The demand for its high-bandwidth memory (HBM) products and its lineup of high-capacity, low-power server DRAM modules continue to drive its revenues. This momentum in Micron's business is likely to sustain, driven by its progress with new products. Its HBM3E ramp is on track, with full-scale shipments anticipated in fiscal Q4. The company is also preparing to launch HBM4, which will deliver improved performance compared to the previous generation and consume less power. These HBM products are likely to drive its data center revenue significantly higher in the coming quarters. Micron has already delivered HBM4 samples to customers, and volume production is slated for 2026. Moreover, its deep relationships with major HBM customers and significant capacity investment augur well for future growth. Beyond HBM, Micron is performing strongly in other areas as well. Its high-capacity DIMMs and low-power DRAM for servers achieved record revenue in Q3, reflecting solid year-over-year growth. Micron is also a leading provider of low-power DRAM for server use, giving it a strategic edge in the data center market. The company also marked its third consecutive quarter of record data center SSD market share thanks to its vertically integrated solutions, which offer high performance and energy efficiency for AI workloads. Additionally, Micron is expanding its appeal in enterprise storage with high-capacity SSDs. In the PC market, growth is expected to be modest in 2025, but Micron is positioning itself for the long term. The increasing rollout of AI-enabled PCs and the Windows 11 upgrade cycle will act as key catalysts. The smartphone market, while growing at a slower pace, also presents opportunities. AI integration is boosting DRAM requirements per device, with more models now shipping with 12GB or more memory. Micron is catering to the premium segment with its advanced offerings, which are ideal for high-performance mobile use cases. Micron's automotive and industrial segments are also on firm footing. The increased adoption of driver-assistance systems and AI-powered in-vehicle entertainment are pushing demand for faster, more efficient memory. Micron recently introduced a dual-channel LP5 DRAM for automotive use. In the industrial sector, demand is rebounding as AI adoption gains momentum in areas such as factory automation. Supply constraints in legacy DRAM products are supporting price recovery and profitability. All these factors suggest that Micron is on track to deliver record revenue, solid profitability, and strong free cash flow. It continues to invest aggressively to strengthen its leadership in AI memory solutions and is well-positioned to capitalize on the demand. Despite the stock's 50% surge, Micron remains reasonably priced. It trades at 20.2x its forward earnings, a modest multiple considering its high earnings growth potential. Moreover, Micron's price-to-sales ratio of 5.7x also looks well-supported by its strong revenue growth trajectory. Wall Street analysts are optimistic about Micron stock, giving it a 'Strong Buy' consensus rating. Following the YTD rally, the stock is trading near analysts' average price target of $127.48. Still, the highest price target on the Street is $172, suggesting the stock could climb another 37% from its current level. Micron has emerged as one of the top beneficiaries of the growing spending on AI infrastructure, with strong momentum across data center and consumer markets. Its robust product pipeline, especially in high-bandwidth memory and AI-optimized storage, positions the company for continued growth. Despite a substantial 50% YTD rally, Micron's valuation remains reasonable relative to its earnings potential, making it an attractive investment. On the date of publication, Sneha Nahata 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
Globe and Mail
2 days ago
- Business
- Globe and Mail
Micron Sells Out 2025 HBM Supply: Can It Meet Soaring Demand in 2026?
Micron Technology, Inc. MU confirmed during its third-quarter fiscal 2025 earnings call that its entire High Bandwidth Memory ('HBM') supply for calendar year 2025 is sold out. This indicates strong demand for Micron Technology's advanced memory chips, which are essential for artificial intelligence (AI)-focused computing platforms. The company also said that it is already working with customers to prepare for HBM demand in 2026. HBM is becoming a key growth driver for Micron Technology. MU expects HBM demand to jump from around $18 billion in 2024 to $35 billion in 2025, with continued growth in 2026. Micron Technology believes that its next-gen HBM4 products, offering over 2 terabytes per second bandwidth and 20% lower power usage, will be crucial in meeting this rising demand. In the third quarter, Micron Technology's HBM revenues ramped up sharply. The company now expects its HBM market share to match its DRAM share in the second half of 2025, earlier than previously planned. Volume shipments of its 12-high HBM3E are underway, and HBM4 sampling has begun for 2026 platforms. The challenge will be whether Micron Technology can scale fast enough. MU is expanding its backend manufacturing capacity and plans to bring more HBM capacity online in Singapore by 2027. Still, with HBM demand outpacing general DRAM growth, tight supply remains a risk. At present, Micron Technology appears well-positioned in the AI memory race. However, maintaining momentum in 2026 will depend on continued execution in both technology and capacity expansion. How Do Micron's Rivals Stack Up in the HBM Race? Although there are no U.S. stock exchange-listed direct competitors for MU in the memory chip space, Intel Corporation INTC and Broadcom Inc. AVGO play key roles in the HBM supply chain and AI hardware ecosystem. Intel is developing its own AI accelerators that rely on high-performance memory like HBM. Although Intel doesn't manufacture HBM chips, its Gaudi AI chips will require a robust HBM supply, and any shift in memory partnerships could impact Micron's position. Broadcom, on the other hand, designs custom application-specific integrated circuits used in AI infrastructure that often include integrated HBM. As demand for Broadcom's AI chips grows, it could influence how HBM suppliers like Micron allocate their future supply. Micron's Price Performance, Valuation and Estimates Shares of Micron Technology have risen around 49.7% year to date compared with the Zacks Computer – Integrated Systems industry's gain of 28.1%. From a valuation standpoint, MU trades at a forward price-to-sales ratio of 3.2, lower than the industry's average of 3.92. The Zacks Consensus Estimate for Micron Technology's fiscal 2025 and 2026 earnings implies a year-over-year increase of approximately 433.1% and 52.4%, respectively. The estimates for fiscal 2025 have been revised upward in the past 60 days, while those for fiscal 2027 have moved south in the past seven days. Micron Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> 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 Intel Corporation (INTC): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
