Latest news with #MicronTechnologyInc
Yahoo
11 hours ago
- Business
- Yahoo
Citi Sees Micron (MU) Climbing to $130 Supported by Better DRAM Pricing
Micron Technology Inc. (NASDAQ:MU) is one of the right now. On June 9, Citi analyst Christopher Danely reaffirmed his Buy rating on Micron and raised the stock's price target to $130 from the previous $110. Danely's outlook is driven by expectations of stronger DRAM pricing, which he believes will surpass initial projections. He now anticipates a quarterly price increase of at least 5%, well above the earlier forecast of 2%. This upward trend in pricing is expected to support Micron's revenue and earnings growth over the coming quarters. An automated manufacturing production line of semiconductor components on an assembly line. In response to these improving market conditions, Danely has revised his financial estimates for the company and now projects stronger sales and higher EPS for fiscal years 2025 and 2026. These higher estimates have resulted in an increase in price target. Although tariff-related developments have subsided, geopolitical tensions remain high. On June 9, Reuters reported that Chinese memory chipmaker Yangtze Memory Technologies (YMTC) filed a lawsuit in Washington, accusing Micron Technology Inc. (NASDAQ:MU) of orchestrating a disinformation campaign. The lawsuit claims Micron falsely portrayed YMTC's chips as containing spyware and posing a national security threat. Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and markets memory and storage products, including dynamic random-access memory (DRAM), flash memory (NAND), solid-state drives (SSDs), and High Bandwidth Memory (HBM) globally. While we acknowledge the potential of MU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
23-04-2025
- Business
- Yahoo
Is Micron Technology Inc. (NASDAQ:MU) the Best Stock Under $100 to Buy According to Hedge Funds?
We recently published a list of the 12 Best Stocks Under $100 to Buy According to Hedge Funds. In this article, we are going to take a look at where Micron Technology Inc. (NASDAQ:MU) stands against other stocks under $100 to buy according to hedge funds. On April 21, Chris Davis of Davis Advisors appeared on 'The Exchange' on CNBC to talk about selectivity in today's market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued. Davis acknowledged that while he cannot predict the market's short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times. Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations. We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up view of a computer motherboard with integrated semiconductor chips. Share Price as of April 22: $66.74 Number of Hedge Fund Holders: 94 Micron Technology Inc. (NASDAQ:MU) designs, develops, manufactures, and sells memory and storage products. It operates through four segments: Compute & Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers. Micron's FQ2 2025 revenue was $8.1 billion, with DRAM revenue at $6.1 billion, which was up 47% year-over-year. NAND revenue was at $1.9 billion, which was up 18%. HBM revenue exceeded $1 billion for the first time, which marked a 50% sequential improvement. The company is the sole high-volume shipper of low-power data center DRAM. It has sold out of 2025 HBM output and is developing HBM4, which boasts a 60% bandwidth increase. The company plans further growth in DRAM and NAND bit shipments in FQ3, with revenue forecasted at ~$8.8 billion. On March 16, Baird analyst Tristan Gerra reaffirmed a Buy rating on the company with a $130 price target due to its growth potential in AI-related memory products. On April 17, Micron Technology Inc. (NASDAQ:MU) announced that it will be concentrating on the AI-linked demand for its memory chips from large-scale cloud providers. Parnassus Value Equity Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q2 2024 investor letter: 'Micron Technology, Inc. (NASDAQ:MU) posted fiscal-third-quarter results that met expectations. Micron's DRAM (dynamic random access memory) and NAND (non-volatile storage technology) segments grew revenue strongly, continuing the company's recovery from a cyclical downturn last year. We believe Micron is well positioned to capitalize on AI-driven demand for greater memory.' Overall, MU ranks 12th on our list of the best stocks under $100 to buy according to hedge funds. While we acknowledge the growth potential of MU, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
12-04-2025
- Business
- Yahoo
Tariff Hangover Sees Micron Stock (MU) Plotting AI-Driven Comeback
Micron Technology Inc (MU) knows all about the ups and downs of the memory chip industry. After enduring a brutal downturn through 2022 and 2023, when chip prices and profits sharply fell, Micron's latest results highlight a stunning recovery. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. The company's data center revenues tripled year-over-year thanks to booming demand for artificial intelligence (AI). This turnaround sends a clear message to investors familiar with Micron's cycles: The storm clouds are parting, and Micron is now positioned to thrive in the sunny upswing driven by the AI revolution. Given the risk factors overshadowing all stocks, I'm tentatively bullish. With Donald Trump seemingly stepping back from the brink of an all-out trade war with several nations, equity markets are gradually recovering. Stocks like Micron Technology stand out as strong candidates for a snap rebound back to prevailing long-term uptrends. What makes Micron particularly compelling is its position at the intersection of AI, memory, and storage. Today's large AI models and cloud applications require huge amounts of DRAM and ultra-fast memory, such as High Bandwidth Memory (HBM), to efficiently feed data to GPUs and specialized processors. Micron is deeply invested in meeting this growing need, rapidly developing cutting-edge products, including HBM3E high-bandwidth memory, advanced DDR5 DRAM, and high-density NAND flash. These technologies are becoming essential components in modern AI servers and data centers. Just a year ago, Micron was caught in one of the worst memory chip famines in recent history. But today, the company isn't just benefiting from the industry's rebound; it's actively fueling it through its leadership in product innovation. The memory chip niche within the semiconductor industry went through a severe downturn in 2022 and 2023, with established companies like Micron, Samsung (SMSN), and SK Hynix facing excessive inventories, falling prices, and reduced demand — especially after the COVID-fueled boom in electronics had faded. Micron and others responded by cutting production and capex to rebalance supply and demand. Consider Micron's financial turnaround: After a rough FY2023, Micron posted a net loss of $5.83 billion as revenues fell sharply by 40%. However, by FY2024, the company remarkably recovered to post a profit of $778 million on sales of $25 billion. This positive momentum has continued into FY2025. In Q2 alone, Micron's GAAP gross margin surged to 36.8%, nearly doubling from just 18.5% the year before. This dramatic improvement illustrates a significant market shift from oversupply to tightening demand. Crucially, Micron returned to profitability, reporting GAAP earnings per share (EPS) of $1.41 and non-GAAP EPS of $1.56 for the quarter. While Micron's business outlook has improved, broader economic uncertainties persist. Investors today face an unusual economic scenario. The yield curve, especially the spread between two-year and ten-year Treasury bonds, was notably inverted through 2022–24. An inverted yield curve often signals an upcoming recession. Recently, this inversion has begun to reverse, indicating that markets anticipate the end of Federal Reserve interest rate hikes. For semiconductor investors, this creates an interesting paradox. While a mild recession could dampen near-term demand for electronics, markets typically anticipate such slowdowns in advance. With the yield curve now flattening, we appear to be in the late stage of the economic cycle. Historically, technology stocks, particularly cyclical sectors like semiconductors, tend to hit their lowest points before the overall economy bottoms out, as investors look beyond the downturn to future growth. For Micron, the macroeconomic concerns are real but likely already reflected in the stock's current valuation. With Micron, as with other cyclical companies, investors often achieve the most significant returns by investing during periods of pessimism. We appear to be in that cautious, uncertain early phase of a new growth cycle. Many investors are wondering whether this recovery is genuinely sustainable. But history shows that these moments can lead to significant gains, especially when skepticism remains strong. It's similar to the market sentiment toward Micron in late 2015 or 2019, periods when the stock was widely overlooked, only to rally strongly in subsequent years. With AI, 5G, and enterprise IT upgrades set to drive higher memory chip demand through 2025 and 2026, Micron is ideally positioned to benefit. Micron is deeply integrated into these key tech trends, providing products such as LPDDR5X memory for AI-driven smartphones and high-capacity SSDs essential for cloud infrastructure. Not surprisingly, CEO Sanjay Mehrotra references the company's current market status as 'the best competitive positioning in Micron's history.' On Wall Street, MU stock carries a Strong Buy consensus rating based on 21 Buy, three Hold, and zero Sell ratings over the past three months. MU's average price target of $129.65 implies approximately 66.5% upside potential over the next twelve months. Although there haven't been new analyst ratings since recent tariff adjustments, my own outlook remains bullish. I anticipate significantly improved macroeconomic conditions by the first half of 2026. Micron's recovery isn't just theoretical—it's happening right now. After enduring one of the harshest downturns in the memory chip industry, Micron has emerged more vigorous, focused, and strategically aligned with influential AI growth trends. Yes, economic uncertainties remain, but the cyclical nature of the semiconductor market means the best returns often come to those willing to buy when sentiment is still cautious. Micron may not be the flashiest player in the AI space, but it's quietly becoming indispensable. Its strategic focus on AI infrastructure, improving margins, and a robust product lineup anchored by HBM3E, DDR5 DRAM, and advanced NAND flash memory positions the company for substantial growth ahead. Investors who wait for complete economic clarity risk missing the opportunity. As in past cycles like 2016 and 2020, significant rewards often go to those who act before the crowd does. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
