Latest news with #MicronTechnology
Yahoo
3 days ago
- 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
4 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
Globe and Mail
4 days 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
Yahoo
4 days ago
- 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
Globe and Mail
4 days ago
- Business
- Globe and Mail
These Were the 2 Best-Performing Stocks in the Nasdaq-100 in June 2025
Key Points The Nasdaq-100 Index performed very well in the month of June. The two top performers saw their prices increase nearly 5 times the index. Micron Technology and Arm Holdings were major winners for their shareholders. 10 stocks we like better than Micron Technology › The Nasdaq-100 index had an outstanding month in June. The index, consisting of the 100 largest non-financial stocks listed on the Nasdaq stock market, gained 6.3% in June. The two powerhouse technology stocks below, however, performed even better. Here's how well they did -- and why. 1. Micron Technology Micron Technology 's (NASDAQ: MU) share price increased 30.5% last month. That made it the Nasdaq-100's top performer. Micron designs and manufactures data storage products that have uses in generative artificial intelligence (AI), an area that has garnered plenty of investors' interest lately given that it's in the early days of what many believe is a massive growth opportunity. In late June, the company reported fiscal third-quarter results for the period ended on May 29. Micron Technology reported revenue of $9.3 billion, a 15.5% increase from the previous quarter and up 36.6% from a year ago. The company's high-bandwidth memory (HBM) used for AI training had quarter-over-quarter revenue growth of 50%. Management forecasts revenue of $10.4 billion to $11 billion for the fourth quarter, a 15% rise from the third quarter at the midpoint of its guidance. 2. Arm Holdings Arm Holdings (NASDAQ: ARM) stock appreciated by 29.9% in June. The company designs, develops, and licenses central processing units (CPUs) for semiconductor and original equipment manufacturing companies like Apple and Nvidia. Arm Holdings' stock price has been volatile this year, with the shares dropping from about $122 to $85 in April after large across-the-board tariffs were announced. The shares subsequently recovered and closed at nearly $146 on July 11. June's price movement appears tied to broader positive sentiment after the Trump administration delayed some tariff implementations. Arm Holdings reported fiscal fourth-quarter results in early May. Revenue for the period ended on March 31 grew 34% year over year to $1.2 billion. 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 10 best stocks 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
