Latest news with #memorychip
Yahoo
2 days ago
- Business
- Yahoo
Micron Technology, Inc. (MU) Launches Industry's Highest-Density, Radiation-Tolerant SLC NAND Flash Memory
By earning a spot on Ethisphere's 2025 list of the World's Most Ethical Companies and attracting significant hedge fund interest, Micron Technology, Inc. (NASDAQ:MU) secures a place on our list of the . Copyright: believeinme33 / 123RF Stock Photo With rapid growth acceleration in the space economy, Micron Technology, Inc. (NASDAQ:MU) announced the launch of the industry's highest-density, radiation-tolerant SLC NAND flash memory on July 22, 2025. This memory chip is designed to survive space's harsh environment, marked by radiation, extreme temperatures, and vacuum pressure. This makes the chip well-suited for advanced space missions. With its memory technology already being used successfully in space, notably in NASA's EMIT spectrometer mission, Micron Technology, Inc. (NASDAQ:MU) aims to expand its aerospace reach with this launch, supporting AI-driven, autonomous spacecraft with effective data storage solutions. Micron Technology, Inc. (NASDAQ:MU) is the only major U.S.-based memory maker, delivering advanced DRAM, NAND, and NOR solutions with its Micron and Crucial brands. It is one of the best ESG stocks. 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: 14 Cheap Transportation Stocks to Buy According to Analysts and Top 10 AI Infrastructure Stocks to Buy Now. Disclosure: None.
Yahoo
17-07-2025
- Business
- Yahoo
Micron Shares Tumble as Goldman Warns of HBM Price Trouble Ahead
July 17 - Micron Technology (NASDAQ:MU) shares fell nearly 4% on Thursday morning, tracking a broader dip in the memory chip sector after Goldman Sachs downgraded South Korea's SK Hynix. Warning! GuruFocus has detected 7 Warning Sign with MU. Goldman analyst Giuni Lee cut the rating on SK Hynix to Neutral from Buy, citing expected weakness in high-bandwidth memory (HBM) pricing by 2026. Shares of the chipmaker slid about 9% following the move. The analyst noted that pricing power is beginning to shift toward large customers, where SK Hynix has significant exposure. Lee also flagged downside risks to the company's 2025 earnings, forecasting a drop in operating profit, in contrast to consensus estimates calling for 17% growth. Goldman's revised forecast for SK Hynix's 2026 operating profit now stands 19% below market expectations, adding to investor unease. Micron, which competes directly in HBM chips for AI systems, was swept up in the negative sentiment as the downgrade raised questions about demand and pricing in the sector. The memory chip market has been a key beneficiary of AI-related growth, but increasing competition and margin pressures are starting to cloud the outlook, analysts say. 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
Yahoo
17-07-2025
- Business
- Yahoo
This Artificial Intelligence (AI) Stock Trades at Just 22 Times Earnings -- and It's Growing Fast
Key Points Micron's earnings are expected to multiply substantially, and yet the stock can be bought at an incredibly attractive valuation right now. The growth opportunity in the memory chip market, driven by AI applications, should enable this chipmaker to deliver outstanding growth. 10 stocks we like better than Micron Technology › Artificial intelligence (AI) has supercharged the growth of many companies in the past two to three years, thanks to the huge amounts of money that are being spent on both AI hardware and software to train AI models and move them into production to unlock the benefits of this technology. Not surprisingly, many of the top AI names are now trading at expensive valuations. From chip giants such as Nvidia and Broadcom to software specialists such as Palantir Technologies and SoundHound AI, investors will have to pay huge premiums if they are looking to add a top AI stock to their portfolios right now. However, there's one company that's not just trading at an extremely attractive valuation, but is growing at an incredible pace as well thanks to AI: Micron Technology (NASDAQ: MU). Let's see why investors would do well to buy this stock now. Data centers, smartphones, and computers are fueling this chipmaker's terrific growth Micron Technology manufactures and sells memory and storage chips that are deployed in AI graphics cards, personal computers (PCs), and smartphones. This makes the company one of the best bets on the secular growth of the AI hardware market. After all, AI chips used in data centers are equipped with large amounts of high-bandwidth memory (HBM), since they can provide substantially higher bandwidth and lower latency. These properties allow HBM chips to quickly transport a lot of data in comparison to legacy memory chips, making them ideal for tackling AI workloads. Micron management points out that the company has "deep relationships with practically every major customer of HBM." Third-party reports suggest the same, indicating that Micron sells its HBM to the top four AI chipmakers that produce both GPUs and custom AI processors. The company is reportedly looking to corner a fourth of the HBM market by the end of the year, and that could translate into a nice increase in Micron's revenue and earnings. After all, the HBM market's revenue is expected to almost double in 2025, generating $35 billion in sales, per Micron's estimates. What's more, the HBM market's revenue is expected to hit $100 billion by 2030. Assuming Micron can sustain a 25% share of this space, HBM alone could contribute around $25 billion to its top line after five years (based on the $100 billion revenue estimate mentioned earlier). That would give Micron's growth a big boost, considering that the company has generated just under $34 billion in revenue in the trailing 12 months. Meanwhile, additional growth is likely to come from the PC and smartphone markets, where the demand for memory is increasing on account of a bump in the average dynamic random-access memory (DRAM) content, thanks to AI. For instance, the mobile DRAM market's revenue could jump sixfold over the next decade, generating more than $636 billion in revenue, as AI and machine learning (ML) applications will lead to an increase in the amount of compute memory required in smartphones. Importantly, this isn't where Micron's list of catalysts ends. The company says that it occupied the second spot in the data center solid-state drive (SSD) market in the first quarter. Again, this could turn out to be a huge positive for Micron in the future, as the data center SSD market's size is expected to grow by over 7x through 2033 from last year's levels. In all, it is easy to see that Micron has solid secular growth opportunities that could help it remain a top growth stock in the long run, and that's why buying the stock right now is a great idea, considering its valuation. The biggest reason to buy Micron stock hand over fist Consensus estimates are expecting a 6x jump in Micron's earnings in the current fiscal year, which will end next month. This astronomical growth can be attributed to skyrocketing memory prices caused by tremendous end-market demand -- fueled by AI -- in the multiple areas discussed. What's more, Micron is expected to clock a 54% jump in earnings in the next fiscal year as well. The good part is that investors can buy Micron stock at just 22 times earnings. That's a steal, considering that the U.S. technology sector has an average earnings multiple of 51. Another thing worth noting here is that Micron is undervalued when we take into account its long-term earnings growth potential. The stock has a price/earnings-to-growth ratio (PEG ratio) of just 0.15, based on its five-year projected earnings growth, per Yahoo! Finance. The PEG ratio is a forward-looking valuation metric that's calculated by dividing a stock's earnings multiple by its estimated annual earnings growth rate over the next five years. A reading of less than 1 means that a stock is undervalued when its future growth is considered. Micron's PEG ratio suggests that it is significantly undervalued. So, this AI stock is a no-brainer buy right now, as the remarkable growth that it has been clocking of late seems here to stay for a long time. Should you invest $1,000 in Micron Technology right 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,059% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. This Artificial Intelligence (AI) Stock Trades at Just 22 Times Earnings -- and It's Growing Fast was originally published by The Motley Fool
Yahoo
12-07-2025
- Business
- Yahoo
Why Micron Stock Jumped 46% in the First Half of the Year
Micron benefited from the recovery in AI stocks in May and June. The company is seeing strong growth in the data center segment. Micron is in an advantageous position as the only memory chip manufacturer in the U.S. 10 stocks we like better than Micron Technology › AI and chip stocks have been among the winners this year, despite a crash in April following President Donald Trump's "Liberation Day" tariffs announcement. And Micron (NASDAQ: MU) has been one of the top performers in the sector. The memory chipmaker has continued to deliver strong growth, especially in artificial intelligence (AI) and the data center. It has also benefited from a return in overall bullishness among investors as the stock rose 46% through the first six months of 2025, according to data from S&P Global Market Intelligence. As you can see from the chart below, the stock overcame a sharp drop in April to come roaring back in May and June. Micron is one of the more cyclically sensitive chip stocks, as the memory category is known for its price swings and inventory gluts, according to the economic cycle and sector-level metrics. For that reason, it trades at a substantial discount to most of the semiconductor sector, despite solid growth. Currently, it's valued at a trailing price-to-earnings (P/E) ratio of 22 and a forward P/E of just 10. Micron stock jumped in May and June as enthusiasm for the AI trade returned, with concerns about the trade war cooling. Nvidia, which is now Micron's biggest customer, has since returned to all-time highs, nearly doubling off its low in April, and Micron delivered a strong round of results. Micron's revenue rose 37% year over year to $9.3 billion, and adjusted earnings per share soared from $0.62 to $1.91 as its margins also significantly improved. The company posted particularly strong results in the data center segment, which now makes up more than half of its revenue. Data center revenue more than doubled from the quarter a year ago, and high-bandwidth memory (HBM) revenue grew nearly 50% sequentially. Micron stock was mostly unchanged on the news, as expectations for the strong growth seemed to be baked into the previous surge. After the surge through May and June, the stock has traded flat over the last couple of weeks. While Micron's growth will rely on continued demand for AI-related components, the company also benefits from being the only U.S. manufacturer of memory chips at a time when the federal government is pushing for the reshoring of such industries, making it strategically valuable. Micron was also awarded $6.6 billion as part of the CHIPS Act. Given its attractive valuation, there should be more upside for Micron stock, even with its cyclical history. 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 $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% 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 July 7, 2025 Jeremy Bowman has positions in Micron Technology and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why Micron Stock Jumped 46% in the First Half of the Year was originally published by The Motley Fool
