Micron Shares Fall Despite Record 50% HBM Revenue Surge
Warning! GuruFocus has detected 3 Warning Sign with MU.
The chipmaker posted record revenue from high-bandwidth memory as demand outpaced supply. However, pricing pressures in NAND and consumer-focused segments pulled its consolidated gross margin down to 37.9%, a decline of 160 basis points sequentially.
Chief Financial Officer Mark Murphy said a high-value mix shift in the DRAM portfolio helped ease some margin pressures, though the company forecasts a lower Q3 gross margin amid higher consumer volumes. Needham analyst N. Quinn Bolton noted that management's guidance for fiscal Q3 non-GAAP gross margin is 36.5%, below both its estimate of 38.5% and the Street's 37.4% forecast, due to persistent challenges in the NAND market and the impact of higher cost inventory.
Micron's high-bandwidth memory revenue jumped 50% to exceed $1 billion, with its HBM3E 8-high and 12-high designs integrated into Nvidia (NVDA, Financial) GB200 and GB300 platforms, respectively.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
NVDA: Morgan Stanley Says 'Time to Power Up' Nvidia Ahead of Earnings
Aug 19 - Morgan Stanley raised its price target on Nvidia and told investors now feels like time to power up for the chipmaker, sending fresh optimism into the market ahead of Nvidia's Aug. 27 Q2 FY26 report. Morgan Stanley's Joseph Moore kept a "Buy" view and nudged the target to $206, citing strong, ongoing customer demand and improving supply for Blackwell GPUs. He now models higher revenue and EPS for 2026, reflecting faster rack assembly and more shipments expected later this year and into early 2026. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Moore also expects Nvidia to hold roughly an 85% market share in AI datacenter chips next year, leaving rivals with a steep catch-up task. The analyst sees July and October revenue beats relative to prior estimates and raised his 2026 revenue/EPS outlook accordingly. While China licensing and supply variables could influence near-term results, the firm's updated forecasts underline a durable demand backdrop from hyperscale cloud customers and growing traction among smaller cloud buyers. That mix helps explain why Wall Street looks bullish heading into the quarter. This article first appeared on GuruFocus.
Yahoo
2 hours ago
- Yahoo
Target Stock Plunges Despite Solid Q2 Results -- CEO Shakeup Sparks Selling
This article first appeared on GuruFocus. Aug 20 - Target Corporation (NYSE:TGT) shares slipped about 7% on Wednesday after the retailer posted mixed second quarter results and announced a leadership transition. The market reaction reflected weaker year-over-year earnings despite signs of operational improvement. Warning! GuruFocus has detected 5 Warning Signs with TGT. Second quarter net sales came in at $25.2 billion, down 0.9% from the prior year. The drop was smaller than in the first quarter, showing that traffic and sales trends are stabilizing, particularly in stores. All six core merchandising categories saw sequential improvements, while digital comparable sales advanced 4.3% on the back of over 25% growth in same-day delivery through Target Circle 360 and continued strength in Drive Up. Non-merchandise revenue also expanded, climbing 14.2% with solid growth in advertising, membership, and marketplace services. Adjusted and GAAP earnings per share landed at $2.05, below the $2.57 earned in 2024, as higher costs and tariff pressures weighed on profitability. Along with results, the board said Monday it has elected Michael Fiddelke as Target's next CEO, succeeding Brian Cornell. The naming is consistent in leadership as the retailer takes the retailer into the high-stakes back-to-school and holiday selling seasons. Based on the one year price targets offered by 30 analysts, the average target price for Target Corp is $105.48 with a high estimate of $140.00 and a low estimate of $82.00. The average target implies a upside of +0.11% from the current price of $105.36. Based on GuruFocus estimates, the estimated GF Value for Target Corp in one year is $147.51, suggesting a upside of +40.01% from the current price of $105.36. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page. Sign in to access your portfolio
Yahoo
4 hours ago
- Yahoo
Why this is a must-watch in Nvidia's earnings report
Nvidia's (NVDA) upcoming earnings day may boil down to one key question: Will China be part of its outlook? "If NVDA were to include China in its guidance, we believe it would contribute an incremental $2-3 billion in revenue," KeyBanc Capital Markets analyst John Vinh wrote in a new note. Vinh expects strong Q2 results, driven by demand for Nvidia's Blackwell GPUs. But he warned that guidance for Q3 could be conservative, given uncertainty around US export licenses to China. Still, KeyBanc reiterated its Overweight rating and lifted its price target to $215 from $190, pointing to Nvidia's central role in the AI boom and supply-demand dynamics that remain firmly in its favor. Nvidia's near-term growth story looks solid without China. Supply of Nvidia's Blackwell B200 GPU jumped 40% in Q2 and could rise another 20% in Q3, according to Vinh. Simultaneously, shipments of the more advanced Blackwell Ultra (B300) are ramping up, reinforcing Nvidia's dominance in AI chips. KeyBanc raised its full-year shipment forecast for Nvidia's rack-sale AI systems, known as GB200. The firm now expects 30,000 units to ship this year, up from 25,000 previously, citing stronger yields and improved supply-chain execution. For now, KeyBanc assumes Nvidia will exclude China revenue from its guidance. That mirrors the approach of Advanced Micro Devices (AMD), which earlier this month left China out of its outlook amid the same regulatory uncertainty. The Chinese impact on Nvidia is significant. KeyBanc raised its Q2 revenue estimate to $47.1 billion from $45.1 billion, above Wall Street's consensus of $45.7 billion. It raised earnings per share to $1.05 from $0.99, slightly above consensus of $1.00. But with Nvidia agreeing to pay 15% of Chinese chip sales to the US government, plus China's push for domestic AI chips, the company is likely to adopt a more conservative stance on its financial forecast. For Q3, KeyBanc cut its revenue estimates to $50.4 billion from $53.5 billion, versus a consensus of $52.6 billion. EPS was clipped to $1.14 from $1.22, below the Street's consensus of $1.19. Longer term, KeyBanc trimmed fiscal 2026 forecasts on China risks, but boosted 2027 expectations on stronger rack shipments due to accelerating spending by hyperscalers like Amazon (AMZN), Microsoft (MSFT), and Google (GOOG). Wall Street remains bullish. Morgan Stanley recently called Nvidia the most undervalued megacap stock in the market. Its shares are up more than 30% year to date and over 35% in the past 12 months. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at
