Latest news with #MicronTechnology
Forbes
12 hours ago
- Business
- Forbes
Upcoming Earnings To Move Micron Technology Stock?
Memory and storage solutions leader Micron Technology (NASDAQ:MU) is scheduled to announce its earnings at the end of June. It is anticipated that revenues will increase by approximately 30% year-over-year to $8.83 billion, while earnings are expected to reach $1.59 per share, compared to $0.62 in the same period last year. Micron has been experiencing significant growth in its data center division due to the ongoing AI boom. There has been a sharp rise in the demand for high-bandwidth memory, which is utilized alongside GPUs for AI applications, leading to a nearly 50% sequential increase in HBM memory revenue over the last quarter as production scales up. Furthermore, Micron seems to be in a stronger position than its competitors, as the company reports gaining market share in these high-margin sectors. Notably, Micron is the sole company currently mass-producing low-power DRAM for data centers, which has become increasingly vital in the AI era as businesses strive to reduce energy expenses. The company has a current market capitalization of $105 billion. Over the past twelve months, its revenue reached $31 billion, and it was operationally profitable, generating $6.2 billion in operating profits and a net income of $4.7 billion. For those looking for potential upside with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and achieving returns greater than 91% since its launch. View earnings reaction history of all stocks Here are some insights regarding one-day (1D) post-earnings returns: Additional information regarding observed 5-Day (5D) and 21-Day (21D) returns following earnings is summarized along with the statistics in the table below. MU 1D, 5D, and 21D Post Earnings Return Trefis A relatively less risky approach (though not beneficial if the correlation is low) is to examine the correlation between short-term and medium-term returns post-earnings, identify a pair that exhibits the highest correlation, and execute an appropriate trade. For instance, if 1D and 5D demonstrate the highest correlation, a trader can take a long position for the next 5 days if the 1D post-earnings return is positive. The correlation data provided is based on a 5-year and a 3-year (more recent) history. Please note that the correlation 1D_5D indicates the relationship between 1D post-earnings returns and the subsequent 5D returns. Discover more about Trefis RV strategy which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000), resulting in strong returns for investors. Additionally, if you prefer potential upside with a smoother experience than investing in an individual stock like Micron Technology, consider the High Quality portfolio, which has outperformed the S&P and recorded returns exceeding 91% since its inception.
Globe and Mail
a day ago
- Business
- Globe and Mail
NVIDIA Stock Soars 19% in a Month: Time to Hold or Book Profits?
NVIDIA Corporation NVDA has seen its share price soar 18.7% over the past month. This surge has significantly outperformed the broader Zacks Computer and Technology sector, which gained 6.9% during the same period. This outperformance raises the question: Is it time to take profits, or should investors continue holding NVDA as the rally extends? Trade Truce Fuels Rally in NVIDIA Shares NVIDIA's recent surge has been driven in part by improving sentiment around U.S.-China trade. The two countries have rolled back tariffs, with the United States reducing tariffs on Chinese imports to 30% from 145%, while China cut duties on U.S. goods from 125% to 10%. These new terms will be in place for 90 days. This 90-day reprieve has eased concerns about prolonged trade disruptions, improving market sentiment and lifting stocks across sectors, especially tech and semiconductors. This broader rally has also powered gains in major semiconductor players, including Advanced Micro Devices AMD, Micron Technology MU and Broadcom AVGO. Over the past month, shares of Advanced Micro Devices, Micron and Broadcom have risen 10%, 17.4% and 20.6%, respectively. For NVIDIA, this trade relief was just the catalyst needed to reignite buying interest in a stock already backed by strong fundamentals. Given its solid footing in AI and chip innovation, this rebound has legs, suggesting that holding the stock may still be the better call. Data Center Demand Keeps NVIDIA on Top NVIDIA's most powerful growth engine continues to be its Data Center business. In the first quarter of fiscal 2026, the segment brought in $39.1 billion in revenues, a staggering 89% of total company sales. This represents 73% year-over-year growth and a 10% sequential rise, primarily fueled by explosive demand for AI. The company's cutting-edge Hopper 200 and Blackwell GPU platforms are being rapidly adopted as cloud and enterprise customers race to scale up AI infrastructure. A large chunk of this growth is coming from hyperscalers, who are betting big on NVIDIA's GPUs to support their expanding AI workloads. With the Blackwell architecture promising up to 25x better AI inference performance than Hopper 100, NVIDIA continues to raise the bar. The upcoming Blackwell Ultra and Vera Rubin platforms are likely to strengthen its position further as global demand for AI computing accelerates. NVIDIA's Resilient Financials Despite China Headwinds Despite some geopolitical setbacks, NVIDIA's financials remain rock solid. In the first quarter of fiscal 2026, revenues jumped 69% from the year-ago quarter, while non-GAAP earnings per share rose 33%. Even with an $8 billion expected revenue hit in the second quarter due to export restrictions on its H20 chips in China (after a $2.5 billion revenue loss in the first quarter), NVIDIA remains confident in its momentum. Its second-quarter guidance of $45 billion in revenues marks a 50% jump from the same quarter last year. Wall Street sees this trend continuing. The Zacks Consensus Estimate projects revenue growth of 51% in fiscal 2026 and 24% in 2027, with earnings growth of 40% and 32%, respectively. These numbers reinforce NVIDIA's position as a long-term growth story, one that remains intact despite near-term geopolitical hurdles. NVIDIA's Premium Price Tag Signals Short-Term Caution Valuation-wise, NVIDIA is overvalued, as suggested by the Zacks Value Score of D. In terms of forward 12-month Price/Earnings (P/E), NVDA shares are trading at 29.13X, higher than the sector's 25.52X. Compared with other major semiconductor players, NVIDIA is trading at a lower P/E multiple than Broadcom while at a higher multiple than Advanced Micro Devices and Micron Technology. At present, Broadcom, Advanced Micro Devices and Micron Technology are trading at P/E multiples of 32.91X, 23.49X and 9.61X, respectively. Conclusion: Hold NVIDIA Stock for Now NVIDIA's strong fundamentals, dominant position in AI and impressive growth outlook make a compelling case for staying invested. While valuation is on the higher side, the company's momentum, both operationally and financially, supports holding the stock. NVIDIA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
Globe and Mail
24-05-2025
- Business
- Globe and Mail
Should You Buy These Beaten-Down Tech Stocks?
The technology sector is full of innovators that offer promising long-term prospects for investors, and that's why it can be beneficial to invest in tech leaders when their share prices are down. Shares of Advanced Micro Devices (NASDAQ: AMD) and Micron Technology (NASDAQ: MU) are trading at steep discounts, while these companies are experiencing strong demand for their data center products. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Is it time to buy these two beaten-down tech stocks? 1. Advanced Micro Devices Advanced Micro Devices' stock has fallen 47% from its previous peak, but the shares got a boost after the company's first-quarter earnings report in May. Despite tariffs creating a lot of uncertainty for businesses, AMD surprised investors by reporting its fourth consecutive quarter of accelerating growth, led by demand for its data center and AI chips. While revenue and earnings fell sequentially over the fourth quarter, demand remains significantly elevated over last year. For Q1, revenue surged 36% year over year to $7.4 billion, with adjusted earnings up 55%. One factor sending the stock higher after the report was AMD's positive outlook for its embedded chip business, which includes sales to industrial markets. This segment posted revenue declines over the past year, but management is now guiding for a return to growth in the second half of 2025. Additionally, strong demand for AMD's new Radeon 9070 series graphics chips drove a revenue increase in the gaming segment of 28% year over year in the quarter. If both the embedded and gaming segments are growing later this year, AMD stock could potentially climb higher. The stock is trading at a forward price-to-earnings (P/E) ratio of 29, which looks attractive for a company with a history of delivering strong growth. But one factor weighing on the stock price is chip export restrictions to China, which AMD expects to reduce its full-year revenue by $1.5 billion. However, management sees the stock as undervalued based on its long-term prospects. It recently announced a $6 billion share repurchase program, bringing its total share repurchase authorization to $10 billion. CEO Lisa Su said: "Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow." With AMD on the verge of potentially seeing all its segments return to growth, in addition to pursuing a $500 billion AI chip opportunity, the stock appears to be a compelling buy. 2. Micron Technology The soaring demand for AI chips is also creating a strong demand environment for storage and memory products to transmit massive amounts of data in data centers. Micron Technology is a leading manufacturer of these products, but uncertainty over near-term demand trends has sent the stock 37% off its recent highs. Micron Technology operates in a highly cyclical industry. It sells memory and solid-state storage products into consumer and data center markets. The company's revenue has trended higher over the last 15 years, and it is currently sitting close to record highs from booming data center demand over the past year. Micron is currently in a strong demand cycle. The company's revenue grew 38% year over year in the most recent quarter, and management expects record quarterly revenue in the fiscal third quarter, driven by the data center market. Investors should be aware that Micron carries a higher risk than AMD. While AMD's annual revenue growth has been more consistent year to year, Micron's annual revenue in the last five years looks like a roller coaster. Investors need to know if the demand from data centers can support higher revenue and earnings in the coming years. One reason to like Micron's prospects is that data centers are going to need more memory and storage for data processing. It's absolutely essential, which is why Micron is experiencing such strong demand for high-bandwidth memory products right now. But this is a competitive market, with several manufacturers vying for market share. This can create volatile swings in selling prices that affect Micron's revenue, hence why its revenue has been volatile in recent years. Despite fluctuation in year-to-year financials due to these risk factors, Micron's innovation in memory technology, where new products are constantly pushing the needle on data retrieval speeds and overall performance, is driving higher demand over the long term. Micron is well-positioned to be a leader in serving booming markets like AI and cloud computing for years to come, and that should lead to higher revenue over the next 10 years, even though this growth may not happen in a smooth line. For what it's worth, the consensus analyst estimate has revenue climbing to $45 billion over the next two years. Earnings are expected to reach $11.12. That puts the stock's forward P/E at less than 10, which could support significant upside for the stock. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices 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 $639,271!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%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 May 19, 2025
Yahoo
24-05-2025
- Business
- Yahoo
Should You Buy These Beaten-Down Tech Stocks?
AMD has seen mixed business results lately, but it's building momentum that could boost the stock. Micron Technology operates in a cyclical industry, but it's on track for record revenue this year. 10 stocks we like better than Advanced Micro Devices › The technology sector is full of innovators that offer promising long-term prospects for investors, and that's why it can be beneficial to invest in tech leaders when their share prices are down. Shares of Advanced Micro Devices (NASDAQ: AMD) and Micron Technology (NASDAQ: MU) are trading at steep discounts, while these companies are experiencing strong demand for their data center products. Is it time to buy these two beaten-down tech stocks? Advanced Micro Devices' stock has fallen 47% from its previous peak, but the shares got a boost after the company's first-quarter earnings report in May. Despite tariffs creating a lot of uncertainty for businesses, AMD surprised investors by reporting its fourth consecutive quarter of accelerating growth, led by demand for its data center and AI chips. While revenue and earnings fell sequentially over the fourth quarter, demand remains significantly elevated over last year. For Q1, revenue surged 36% year over year to $7.4 billion, with adjusted earnings up 55%. One factor sending the stock higher after the report was AMD's positive outlook for its embedded chip business, which includes sales to industrial markets. This segment posted revenue declines over the past year, but management is now guiding for a return to growth in the second half of 2025. Additionally, strong demand for AMD's new Radeon 9070 series graphics chips drove a revenue increase in the gaming segment of 28% year over year in the quarter. If both the embedded and gaming segments are growing later this year, AMD stock could potentially climb higher. The stock is trading at a forward price-to-earnings (P/E) ratio of 29, which looks attractive for a company with a history of delivering strong growth. But one factor weighing on the stock price is chip export restrictions to China, which AMD expects to reduce its full-year revenue by $1.5 billion. However, management sees the stock as undervalued based on its long-term prospects. It recently announced a $6 billion share repurchase program, bringing its total share repurchase authorization to $10 billion. CEO Lisa Su said: "Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow." With AMD on the verge of potentially seeing all its segments return to growth, in addition to pursuing a $500 billion AI chip opportunity, the stock appears to be a compelling buy. The soaring demand for AI chips is also creating a strong demand environment for storage and memory products to transmit massive amounts of data in data centers. Micron Technology is a leading manufacturer of these products, but uncertainty over near-term demand trends has sent the stock 37% off its recent highs. Micron Technology operates in a highly cyclical industry. It sells memory and solid-state storage products into consumer and data center markets. The company's revenue has trended higher over the last 15 years, and it is currently sitting close to record highs from booming data center demand over the past year. Micron is currently in a strong demand cycle. The company's revenue grew 38% year over year in the most recent quarter, and management expects record quarterly revenue in the fiscal third quarter, driven by the data center market. Investors should be aware that Micron carries a higher risk than AMD. While AMD's annual revenue growth has been more consistent year to year, Micron's annual revenue in the last five years looks like a roller coaster. Investors need to know if the demand from data centers can support higher revenue and earnings in the coming years. One reason to like Micron's prospects is that data centers are going to need more memory and storage for data processing. It's absolutely essential, which is why Micron is experiencing such strong demand for high-bandwidth memory products right now. But this is a competitive market, with several manufacturers vying for market share. This can create volatile swings in selling prices that affect Micron's revenue, hence why its revenue has been volatile in recent years. Despite fluctuation in year-to-year financials due to these risk factors, Micron's innovation in memory technology, where new products are constantly pushing the needle on data retrieval speeds and overall performance, is driving higher demand over the long term. Micron is well-positioned to be a leader in serving booming markets like AI and cloud computing for years to come, and that should lead to higher revenue over the next 10 years, even though this growth may not happen in a smooth line. For what it's worth, the consensus analyst estimate has revenue climbing to $45 billion over the next two years. Earnings are expected to reach $11.12. That puts the stock's forward P/E at less than 10, which could support significant upside for the stock. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% 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 May 19, 2025 John Ballard has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Should You Buy These Beaten-Down Tech Stocks? was originally published by The Motley Fool
Yahoo
23-05-2025
- Business
- Yahoo
Micron Stock Soars 23% in a Month: Time to Hold or Book Profits?
Micron Technology, Inc. MU has seen its share price soar 22.7% over the past month. This surge has significantly outperformed the broader Zacks Computer and Technology sector, which gained 10.7% during the same period. Image Source: Zacks Investment Research This outperformance raises the question: Should investors book profits and exit or continue holding the stock? Micron's latest rally was fueled by optimism around improving U.S.-China trade relations. Since late April, investor sentiment has been lifted by reports of a temporary easing of tariffs between the world's two largest economies. Under the new deal, the United States agreed to lower tariffs on Chinese imports from 145% to 30%, while China will reduce duties on U.S. imports from 125% to 10%. These revised rates will remain in effect for 90 days, creating short-term certainty for global commerce. The temporary trade truce revived hopes for smoother international trade and strengthened confidence in the economic outlook. As fears of escalating trade disruptions faded, equities, particularly in the tech and semiconductor sectors, rallied sharply. Apart from Micron, this broader market optimism also boosted share prices of other semiconductor players, including NVIDIA NVDA, Broadcom AVGO and Advanced Micro Devices AMD. Over the past month, shares of NVIDIA, Broadcom and Advanced Micro Devices have soared 25%, 22.5% and 17.8%, respectively. Micron's long-term growth potential, along with invigorated investor optimism, makes the stock worth holding at the moment. Micron sits at the heart of several transformative tech trends. Its exposure to artificial intelligence (AI), high-performance data centers, autonomous vehicles and industrial IoT uniquely positions the company for sustainable long-term growth. As AI adoption accelerates, the demand for advanced memory solutions like DRAM and NAND is soaring. Micron's investments in next-gen DRAM and 3D NAND ensure it remains competitive in delivering the performance needed for modern computing. The company's diversification strategy is also bearing fruit. By shifting its focus away from the more volatile consumer electronics market and toward resilient verticals such as automotive and enterprise IT, Micron has created a more stable revenue base. This balance enhances its ability to weather cyclical downturns, a critical trait in the semiconductor space. Micron is also riding a strong wave in high-bandwidth memory (HBM) demand. Its HBM3E products are attracting significant interest for their superior energy efficiency and bandwidth, ideal for AI workloads. In January 2025, NVIDIA confirmed that Micron is a core HBM supplier for its GeForce RTX 50 Blackwell GPUs, signaling deep integration in the AI supply chain. Additionally, Micron's newly announced HBM advanced packaging facility in Singapore, set to launch in 2026 with further expansion in 2027, underscores its commitment to scaling production for AI-driven markets. Micron's financial outlook remains robust. The company's third-quarter fiscal 2025 targets suggest robust year-over-year revenue growth of 29% and a 153% jump in EPS. The Zacks Consensus Estimate for fiscal 2025 and 2026 revenues indicates year-over-year growth of 41% and 30%, respectively. The consensus mark for EPS suggests a robust year-over-year improvement of 433% for fiscal 2025 and 56% for fiscal 2026. Micron also has a strong history of beating earnings estimates. The stock surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 10.7%. Micron Technology, Inc. price-consensus-eps-surprise-chart | Micron Technology, Inc. Quote In terms of forward 12-month Price/Sales (P/S), MU shares are trading at 2.45X, significantly lower than the sector's 6.07X. Image Source: Zacks Investment Research The stock's P/S ratio is also lower than major semiconductor players, including NVIDIA, Broadcom and Advanced Micro Devices. At present, Broadcom, NVIDIA and Advanced Micro Devices have forward 12-month P/S multiples of 15.59X, 15.96X and 5.31X, respectively. While Micron impressed with 38.3% year-over-year revenue growth in the second quarter of fiscal 2025, its profitability came under significant pressure. The company's non-GAAP gross margin declined to 37.9%, down from 39.5% in the previous quarter, marking a sharp sequential fall. This deterioration was driven by weaker NAND flash pricing and ongoing startup costs at its new DRAM production facility in Idaho. More concerning is the company's margin outlook. For the third quarter, Micron guided for a gross margin of 36.5% at the midpoint, signaling further compression. This weaker-than-expected outlook, despite record sales in its HBM segment, indicates that margin pressures are likely to persist. Falling profitability, even amid strong AI-driven demand, raises questions about Micron's ability to capitalize on the booming AI market. If the company cannot maintain healthy margins, future earnings growth could be constrained. Micron's fundamentals remain strong, and its position in the AI-driven memory market is well-established. The company offers compelling long-term growth potential, maintains a disciplined approach to innovation and trades at a discount relative to peers. However, ongoing margin compression warrants caution in the short term. Given this balance of strengths and emerging risks, investors are advised to hold Micron stock for now. Currently, MU carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : 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
