Latest news with #data center
Globe and Mail
19 hours ago
- Business
- Globe and Mail
DRAM Demand Powers Micron Technology's Growth: Will the Momentum Last?
Micron Technology's MU Dynamic Access Random Memory (DRAM) revenues grew 51% year over year in the third quarter of fiscal 2025 to $7.1 billion. The DRAM segment, which accounted for a whopping 76% of the company's top line, is getting propelled by the traction in data center, automotive, PC and mobile end market growth. Micron Technology's DRAM segment is led by its products like low-power server DRAM and high bandwidth memory (HBM) chips, which are experiencing a massive surge in use cases in Artificial Intelligence (AI) workloads due to their higher capacity and low power consumption. Additionally, Micron Technology experienced a sequential surge of 50% in HBM revenues, which drove DRAM revenues to a record high in the third quarter of fiscal 2025. The company highlighted robust momentum in the automotive end market, where advanced driver assistance systems and AI-powered in-vehicle infotainment systems are pushing higher memory and storage content growth. In the mobile end market, Micron Technology is benefiting from the growing demand for AI features, which is driving higher DRAM content growth for smartphones. The company expects industry DRAM bit demand to grow in the high-teens percentage range in calendar 2025. Additionally, low inventory levels in distribution channels are expected to support pricing and margins going forward. This demonstrates that Micron's DRAM business is set to benefit from higher-value product shipments and tight supply in leading-edge nodes. The Zacks Consensus Estimate for fiscal 2025 DRAM revenues is pegged at $27.95 billion, indicating year-over-year growth of 58.8%. The consensus mark for fiscal 2025 signifies total revenues to grow 46.5% to $36.79 billion. How Competitors Fare Against Micron Micron Technology competes with Western Digital Corporation WDC and Seagate Technology Holdings plc STX in the data storage market. Micron Technology competes with Western Digital in the NAND market. Western Digital is a diversified storage company with a broader portfolio that includes both traditional hard disk drives (HDDs) and NAND-based solid-state drives (SSDs). Seagate is a major force in the HDD market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. Seagate is also developing its presence in the SSD market through portfolio expansion and partnerships. Micron's Price Performance, Valuation and Estimates Shares of MU have gained 38.2% year to date compared with the Zacks Computer - Integrated Systems industry's growth of 29.3%. MU YTD Price Performance From a valuation standpoint, MU trades at a forward price-to-sales ratio of 2.75X, lower than the industry's average of 3.92X. MU Forward 12-Month P/S Ratio The Zacks Consensus Estimate for MU's fiscal 2025 earnings implies year-over-year growth of 497.7%, while the 2026 earnings estimate implies growth of 57.9%. The earnings estimates for fiscal 2025 and 2026 have been revised upward in the past 30 days and seven days, respectively. MU currently carries a Zacks Rank #2 (Buy). 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 Western Digital Corporation (WDC): Free Stock Analysis Report Seagate Technology Holdings PLC (STX): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report
The Guardian
a day ago
- Business
- The Guardian
Zuckerberg says Meta will build data center the size of Manhattan in latest AI push
Mark Zuckerberg proclaimed that Meta would spend hundreds of billions of dollars on developing artificial intelligence products in the near future and, to that end, construct a data center planned to be nearly the size of Manhattan. The parent company of Facebook, Instagram and WhatsApp is among the large tech companies that have struck high-profile deals, and doled out multimillion-dollar pay packages to AI researchers in recent months – some as high as $100m – to fast-track work on machines that could outthink humans on many tasks, a concept known as 'super-intelligence' or 'artificial general intelligence'. Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 gigawatts over the coming years, Zuckerberg said. 'We're building multiple more titan clusters as well. Just one of these covers a significant part of the footprint of Manhattan,' the billionaire CEO said. This article includes content provided by Facebook. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. To view this content, click 'Allow and continue'. He also pointed to a report from industry publication SemiAnalysis that Meta was on track to be the first AI lab to bring a gigawatt-plus supercluster online. Zuckerberg touted the strength in the company's core advertising business to justify the massive spending amid investor concerns on whether the expenditure would pay off. 'We have the capital from our business to do this,' he said. The company, which generated nearly $165bn in revenue last year, reorganized its AI efforts last month under a division called Superintelligence Labs after setbacks for its open-source Llama 4 model and key staff departures. It is betting that the division will generate new cashflows from the Meta AI app, image-to-video ad tools and smart glasses. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion DA Davidson analyst Gil Luria said Meta was investing aggressively in AI as the technology has already boosted its ad business by allowing it to sell more ads and at higher prices. In recent weeks, Zuckerberg has personally led an aggressive talent raid for the Meta Superintelligence Labs, which will be led by former Scale AI CEO Alexandr Wang and ex-GitHub chief Nat Friedman, after Meta invested $14.3bn in Scale. Meta had raised its 2025 capital expenditure predictions to between $64bn and $72bn in April, aiming to bolster the company's position against rivals OpenAI and Google.
CNA
2 days ago
- Business
- CNA
XAI in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reports
Elon Musk's xAI is in talks to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, as part of an effort to expand its infrastructure in regions offering cheap energy and political goodwill.
Reuters
2 days ago
- Business
- Reuters
XAI in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reports
July 16 (Reuters) - Elon Musk's xAI is in talks to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, as part of an effort to expand its infrastructure in regions offering cheap energy and political goodwill.
Yahoo
2 days ago
- Business
- Yahoo
XAI in discussions to lease data center capacity in Saudi Arabia, Bloomberg News reports
(Reuters) -Elon Musk's xAI is in talks to lease data center capacity in Saudi Arabia, Bloomberg News reported on Wednesday, as part of an effort to expand its infrastructure in regions offering cheap energy and political goodwill. 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
