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Yahoo
2 days ago
- Business
- Yahoo
5 High-Growth US Stocks Leading the Future of Business
In a digital-first world, technological advancements in businesses are no longer just good-to-have, but a must. From Artificial Intelligence (AI) infrastructure to e-commerce, innovation is driving the next wave of successful business models. Against this backdrop, a select group of US companies has emerged as frontrunners of this wave, demonstrating rising profits and highly-scalable business models. If you aim to catch this wave, here are five US growth stocks worth keeping a close eye on. Uber has proven itself as a resilient incumbent in the industry despite the extremely competitive rideshare landscape. One of the main reasons for this can be attributed to its strategic partnerships. Uber recently announced its collaboration with Nvidia (NASDAQ: NVDA) to develop more sophisticated AI models for its autonomous-driving technology while expanding its operational efficiency. In the first quarter of 2025 (1Q 2025), Uber's revenue rose 14% year-on-year (YoY) to US$11.5 billion. This is underpinned by a year-on-year rise in revenue of 15% and 18% for its mobility and delivery segments, respectively. Uber also showed a 35% year-on-year surge in its adjusted Earnings Before Interest Tax Depreciation and Amortisation (EBITDA). Uber's adjusted EBITDA performance exhibits strong and healthy earnings performance by Uber. It also shows its relevance as a platform in the travel and at-home consumption 2Q 2025, Uber's gross bookings are set to grow about 16% to 20% YoY and its adjusted EBITDA by 29% to 35% YoY. With AI continuing to be the talk of the town, Micron is making strides in solidifying its position in the AI-driven semiconductor chip industry. For 2Q FY2025, Micron's revenue from its High Bandwidth Memory chips grew more than 50% quarter-on-quarter and its data centre Dynamic Random Access Memory (DRAM) chip revenue reached a record high. Micron also has a monopoly, being the sole supplier of low-powered DRAM chips into data centres in large quantities. Micron's newly developed 1-gamma DRAM has also achieved 20% lower power, 15% better performance and over 30% in bit-density as compared to its 1-beta development places Micron in a strategic position to capture the growing demand for memory chips and data centres. In 2Q FY2025, Micron reported a revenue of US$8.05 billion, a 38% YoY increase and a more than two-fold increase in audited net income of US$1.58 billion from US$0.79 billion in 2Q FY2024. For 3Q FY2025, its revenue is projected to be between US$8.6 billion to US$9 billion. Another big player in the AI semiconductor industry is AMD. Unlike Micron, AMD produces processing units and graphic cards for AI and gaming applications. For 1Q 2025, AMD announced solid earnings as revenue increased by 36% YoY, along with an increase in net profit of 476% YoY to US$709 million. For 2Q 2025, AMD projected revenue of between US$7.1 billion to US$7.7 billion. The company's management also announced a US$6 billion share repurchase programme, demonstrating strong confidence in AMD's growth and ability to generate consistent strong free cash flow. With the recent frenzy regarding the US tariffs, it may be surprising to see Amazon, an e-commerce giant, on this in 1Q 2025 the company announced a strong performance with net sales increasing by almost 9% YoY to US$155.7 billion. Its net profit also increased from US$10.4 billion in the first quarter in 2024 to US$17.1 billion in 1Q of the largest contributors was Amazon Web Services (AWS). The cloud service division's revenue saw an increase of 17% YoY to US$29.3 billion as it is less susceptible to tariff threats. Amazon is also leveraging AI by partnering with HUMAIN with a US$5 billion investment to develop an innovation hub for AWS AI infrastructure in Saudi Arabia. Adobe's Creative Cloud and its applications is one of the most recognised tools in the creative industry, from Photoshop to InDesign. Adobe is also improving its AI products such as Adobe Experience Platform Agent Orchestrator which is used to manage AI agents and create more personalised creative content. For 1Q FY2025 ending 28 February 2025, Adobe had a record revenue of US$5.7 billion, a 10% YoY increase. Its net income also increased from US$620 million in 1Q FY2024 to US$1.8 billion in 1Q FY2025. The best performing segment was that of Digital Media, with a revenue of US$4.2 billion, representing an 11% YoY growth. Adobe projected that its 2Q FY2025 revenue will be between US$23.3 billion to US$23.55 billion. As AI and digital innovation continue to redefine the rules of competition, these five companies stand out not just for embracing change — but for turning trends into sustainable growth. These five US growth stocks are not only adapting to the new digitalised economy; they are helping to shape it. For investors seeking scalable, future-ready businesses, now is the time to take notice. Generative AI is reshaping the stock market, but not in the way most investors think. It's not just about which companies are using AI. It's about how they're using it to unlock new revenue, dominate their markets, and quietly reshape the business world. Our latest FREE report 'How GenAI is Reshaping the Stock Market' breaks the hype down, so you can invest with greater clarity and confidence. Click here to download your copy today. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Gabriel Lim does not own shares of Uber, Micron, Advanced Micro Devices, Amazon and Adobe. The post 5 High-Growth US Stocks Leading the Future of Business appeared first on The Smart Investor.
Yahoo
21-05-2025
- Business
- Yahoo
Here's How Much a $1000 Investment in Micron Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries. Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks. What if you'd invested in Micron (MU) ten years ago? It may not have been easy to hold on to MU for all that time, but if you did, how much would your investment be worth today? With that in mind, let's take a look at Micron's main business drivers. Idaho-based Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory global brands, namely Micron, Crucial and Ballistix, Micron manufactures and markets high-performance memory and storage technologies including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Its solutions are used in leading-edge computing, consumer, networking and mobile products.A major portion of the revenues is derived from DRAM sales. The company's mission is to be the most efficient and innovative global provider of semiconductor memory reported revenues of $25.1 billion in fiscal 2024. The company has four reportable segments:Compute and Networking Business Unit (CNBU): The unit comprises of DRAM and NOR Flash products that are sold to the computer, networking, graphics, and cloud server markets, and NAND Flash products which are sold into the networking market. CNBU delivered revenues of $9.51 billion (38% of total revenues) in fiscal Business Unit (MBU): The unit comprises Micron's discrete DRAM, discrete NAND and managed NAND (including eMMC and universal flash storage (UFS) solutions) products that are sold to smartphone and other mobile-device markets. MBU generated revenues of $6.35 billion (25%) in fiscal Business Unit (SBU): The unit accounts for solid state drives (SSDs) and component-level solutions sold into enterprise and cloud, client and consumer storage markets as well as other discrete storage products sold in component and wafer forms to the removable storage markets. SBU's revenues grossed $4.59 billion (18%) in fiscal Business Unit (EBU): The unit includes Micron's discrete DRAM, discrete NAND, managed NAND and NOR products, which are sold to the automotive, industrial and consumer markets. EBU's revenues logged $4.61 billion (19%) in fiscal company struggles with intense competition from Intel, Samsung Electronics, SK Hynix, Toshiba Memory and Western Digital Corporation. Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Micron a decade ago, you're probably feeling pretty good about your investment today. According to our calculations, a $1000 investment made in May 2015 would be worth $3,689.36, or a 268.94% gain, as of May 21, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation. In comparison, the S&P 500 gained 179.44% and the price of gold went up 162.41% over the same time frame. Analysts are anticipating more upside for MU. Micron's latest quarterly performance underscores its strategic positioning in the rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to the top-line growth. Surging demand for HBM and robust DRAM pricing recovery will aid significant revenue and earnings growth in coming quarters. Its solid financials, positive free cash flow, and strong balance sheet provide the flexibility to invest in growth initiatives while enhancing shareholder value. Its long-term customer agreements and expanding AI partnerships reduce volatility and enhance revenue visibility. Nonetheless, weakness in NAND pricing due to oversupply conditions and slower-than-expected demand recovery might hurt overall financial performance. An escalating trade war is another concern. The stock has jumped 39.72% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025; the consensus estimate has moved up as well. 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 Micron Technology, Inc. (MU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
27-03-2025
- Business
- Yahoo
Is Micron Technology Stock Going to $163? 1 Wall Street Analyst Thinks So.
Micron Technology (NASDAQ: MU) recently reported another quarter of strong demand for its memory products. Baird analyst Tristan Gerra updated his guidance as a result, maintaining an outperform (buy) rating on the shares and changing the firm's price target from $130 to $163. The new price target implies a 77% upside over the current $92.13 share price. There are good reasons to be bullish on Micron. Revenue hit $8.05 billion in the most recent quarter, up 38% year over year, driven by strong demand for high-bandwidth memory in the data center market. Micron has also benefited from higher selling prices for its Dynamic Random Access Memory (DRAM) and NAND flash memory over the last year. Micron is well-positioned to ride the growing demand for advanced memory technology to handle artificial intelligence (AI) workloads. Management expects the business to report record revenue in the fiscal third quarter. These products have a history of sharp swings in selling prices, which makes Micron's business very cyclical, so timing is something to consider when buying Micron stock. On that note, Micron's NAND products experienced a sequential decline in selling prices last quarter, sending revenue down 17% quarter over quarter. This creates more uncertainty for the business, which explains why the stock is trading roughly 40% below last year's highs. Still, AI data center demand is not slowing down. Micron expects improvements in the supply situation for NAND products, which should benefit revenue. Looking out to 2026, management is expanding its high-bandwidth memory capacity to meet higher demand from data centers. The stock is trading at 13 times this year's earnings estimate, which is below its historical average price-to-earnings ratio of 19.9. Assuming Micron reports record revenue this year, consistent with Wall Street's expectation, there's enough value in the shares to justify the stock reaching the $163 price target within the next year. 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,245!* Now, it's worth noting Stock Advisor's total average return is 845% — a market-crushing outperformance compared to 165% 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 March 24, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Micron Technology Stock Going to $163? 1 Wall Street Analyst Thinks So. was originally published by The Motley Fool
