Latest news with #Micron
Business Insider
11 hours ago
- Business
- Business Insider
‘Take Profits Now,' Says Analyst about Micron Stock (MU)
Semiconductor company Micron Technology (MU) has just been added to Hedgeye's active short list, with the firm now advising investors to lock in gains after a strong run. Indeed, Hedgeye analyst Felix Wang explained that the firm is flipping its view from long to short because Micron was one of the top-performing large-cap semiconductor stocks following the recent 'Liberation Day' rally. As a result of the stock's surge, Hedgeye believes now is a good time to take profits. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. A major reason for the downgrade is the rising competition from Samsung (SSNLF), particularly when it comes to high-bandwidth memory (HBM) chips. Wang believes that Samsung is catching up fast with its new HBM4 technology and could soon challenge Micron in supplying these chips to Nvidia (NVDA). If Samsung re-establishes itself as a serious HBM contender, Micron could lose market share in a very profitable area of its business. Adding to the concern, Wang noted that Samsung's latest 1c DRAM chips are seeing better production results, with yields now over 50%, according to several sources. Because of this, Hedgeye has lowered its estimate for Micron's HBM revenue in 2026 from $10.5 billion to $10 billion, which is 7% below what most analysts expect. Wang also said that Micron's overall revenue forecast of $48 billion for 2026 may currently be too optimistic. Interestingly, this view is the opposite of Mizuho analyst Vijay Rakesh 's recommendation, who said that the stock's recent pullback is a buying opportunity. As a result, the five-star analyst reiterated his Buy rating with a $150 price target. Is MU a Good Stock to Buy? Overall, analysts have a Strong Buy consensus rating on MU stock based on 22 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MU price target of $155.17 per share implies 36.1% upside potential.
Yahoo
a day ago
- Business
- Yahoo
2 Large-Cap Stocks with Promising Prospects and 1 That Underwhelm
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they've already captured significant portions of their markets. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one that could be stalling. One Large-Cap Stock to Sell: Emerson Electric (EMR) Market Cap: $81.13 billion Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets. Why Do We Think Twice About EMR? Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.1 percentage points Waning returns on capital imply its previous profit engines are losing steam Emerson Electric's stock price of $144 implies a valuation ratio of 23.3x forward P/E. Read our free research report to see why you should think twice about including EMR in your portfolio, it's free. Two Large-Cap Stocks to Watch: Micron (MU) Market Cap: $128 billion Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets. Why Does MU Stand Out? Annual revenue growth of 36.4% over the last two years was superb and indicates its market share increased during this cycle Revenue outlook for the upcoming 12 months is outstanding and shows it's on track to gain market share Performance over the past five years shows its incremental sales were more profitable, as its annual earnings per share growth of 22.8% outpaced its revenue gains At $114.15 per share, Micron trades at 11.4x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Super Micro (SMCI) Market Cap: $30.9 billion Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ:SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications. Why Will SMCI Beat the Market? Impressive 81.2% annual revenue growth over the last two years indicates it's winning market share this cycle Earnings per share grew by 23.2% annually over the last five years and trumped its peers Rising returns on capital show management is finding more attractive investment opportunities Super Micro is trading at $51.85 per share, or 16.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
2 days ago
- Business
- Yahoo
Texas Instruments (TXN) Reports Earnings Tomorrow: What To Expect
Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting earnings this Tuesday after market hours. Here's what to look for. Texas Instruments beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $4.07 billion, up 11.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. Is Texas Instruments a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Texas Instruments's revenue to grow 13.8% year on year to $4.35 billion, a reversal from the 15.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Instruments has missed Wall Street's revenue estimates three times over the last two years. Looking at Texas Instruments's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 36.6%, beating analysts' expectations by 4.9%, and Penguin Solutions reported revenues up 7.9%, falling short of estimates by 1.4%. Micron traded down 1.2% following the results while Penguin Solutions was up 10.6%. Read our full analysis of Micron's results here and Penguin Solutions's results here. There has been positive sentiment among investors in the semiconductors segment, with share prices up 9.5% on average over the last month. Texas Instruments is up 7.7% during the same time and is heading into earnings with an average analyst price target of $193.74 (compared to the current share price of $216.95). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
2 days ago
- Business
- Yahoo
What To Expect From NXP Semiconductors's (NXPI) Q2 Earnings
Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting earnings this Monday afternoon. Here's what to look for. NXP Semiconductors met analysts' revenue expectations last quarter, reporting revenues of $2.84 billion, down 9.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts' adjusted operating income estimates but an increase in its inventory levels. Is NXP Semiconductors a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting NXP Semiconductors's revenue to decline 7.2% year on year to $2.90 billion, a further deceleration from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.66 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. NXP Semiconductors has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average. Looking at NXP Semiconductors's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 36.6%, beating analysts' expectations by 4.9%, and Penguin Solutions reported revenues up 7.9%, falling short of estimates by 1.4%. Micron traded down 1.2% following the results while Penguin Solutions was up 10.6%. Read our full analysis of Micron's results here and Penguin Solutions's results here. There has been positive sentiment among investors in the semiconductors segment, with share prices up 10.4% on average over the last month. NXP Semiconductors is up 8.1% during the same time and is heading into earnings with an average analyst price target of $247.22 (compared to the current share price of $226). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
5 days ago
- Business
- Yahoo
Why Micron Stock Dropped Today
Key Points Edgewater Research warned Monday that prices and demand for computer memory chips will fall in the second half of 2025. On Thursday, TSMC seconded the emotion, warning of a sales slowdown coming in Q3. Micron's free cash flow already looks weak relative to reported earnings. A slowdown could make things worse. 10 stocks we like better than Micron Technology › Micron (NASDAQ: MU) stock is getting hammered again Thursday afternoon, down 3.1% through 12:20 p.m. ET. Earlier in the week, if you recall, shares of the computer semiconductor memory maker tumbled after Edgewater Research warned that prices and demand for computer memory chips would fall in the second half of 2025. Today, we're hearing echoes of the same forecast from Taiwan Semiconductor Manufacturing (NYSE: TSM), the biggest player in contract chip manufacturing. Why TSMC's news should worry Micron investors Early this morning, TSMC reported strong Q2 sales and earnings. By one measure, sales climbed 44.4%, and profits were up 60.7%. That's great news for now. But turning to guidance, TSMC warned investors that Q3 sales will slow a bit, rising 38% at best, while gross and operating profit margins will both decline sequentially. Unfortunately, this news tallies with what Edgewater told us earlier in the week: That chip demand and chip prices will both be "subseasonal" in the second half of this year (meaning Q3, and Q4 as well), and that there's a "bias lower" -- meaning things could get worse, not better. Is Micron stock a sell? Micron's own numbers don't give any more cause for optimism. As I pointed out on Monday, the stock reports good earnings -- $6.2 billion in net profit over the last 12 months. However, free cash flow is less than one-third as good as its earnings according to generally accepted accounting principles (GAAP): Just $1.9 billion generated over the past year. That's not a lot of cash to support Micron's $126 billion market cap. It actually gives the stock a price-to-free cash flow ratio of 66.5, which is probably too much to pay. It's almost certainly too much if pricing and demand are getting worse, not better. Should you buy stock 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 1,058% — a market-crushing outperformance compared to 179% 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 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Why Micron Stock Dropped Today 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
