Latest news with #SanjayMehrotra
Yahoo
17-07-2025
- Business
- Yahoo
Micron Technology (MU) Tumbles 5%. Here's Why
Micron Technology, Inc. (NASDAQ:MU) is one of the . Micron Technology declined by 4.75 percent on Monday to close at $118.61 apiece as investors unloaded positions amid the lack of fresh catalysts to boost investing appetite. On July 22, shareholders of Micron Technology, Inc. (NASDAQ:MU) as of July 7 record will expect to receive $0.115 per share of quarterly dividends, after the company posted a robust earnings performance during the last reported period. In the third quarter of fiscal year 2025, Micron Technology, Inc. (NASDAQ:MU) expanded its net income by 468 percent to $1.885 billion from $332 million in the same period last year. Revenues increased by 36.5 percent to $9.3 billion from $6.8 billion year-on-year. A close-up view of a computer motherboard with integrated semiconductor chips. 'We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand,' said Chairman, President, and CEO Sanjay Mehrotra. While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
04-07-2025
- Business
- Yahoo
Prediction: This Growth Stock Will Skyrocket in the Second Half of 2025
Micron Technology has clocked impressive gains so far in 2025, and it looks set to fly higher in the second half of the year as well. The company's latest quarterly results make it clear that it is benefiting big time from fast-growing demand for memory chips used in various applications. Micron's solid growth potential and attractive valuation make the stock a no-brainer buy right now, considering the potential upside it could deliver. 10 stocks we like better than Micron Technology › Memory specialist Micron Technology (NASDAQ: MU) has been delivering terrific growth in recent quarters thanks to booming demand for its chips deployed in data centers, smartphones, and personal computers (PCs), which explains why the stock has clocked solid gains of 46% so far this year. Micron released its fiscal 2025 third-quarter results (for the three months ended May 29) on June 25. A closer look at the company's numbers and guidance suggests that its rally is here to stay in the second half of the year. Let's look at the reasons why investors can expect Micron stock to deliver more upside for the rest of the year as well. Micron's fiscal Q3 revenue shot up 37% year over year to $9.3 billion, while its adjusted earnings more than tripled to $1.91 per share. The numbers crushed Wall Street's expectations of $1.60 per share in earnings on revenue of $8.86 billion. Micron CEO Sanjay Mehrotra remarked on the latest earnings conference call that its data center revenue more than doubled from the year-ago period and hit record levels last quarter. This terrific growth was driven by the healthy demand for Micron's high-bandwidth memory (HBM) chips that are integrated with AI accelerators from the likes of Nvidia and AMD. Micron management points out that it is shipping its HBM chips in high volumes to four customers right now, who are integrating them with both graphics cards and custom AI processors. Importantly, Micron is not resting on its laurels and is focused on further improving the performance of its HBM chips. The company claims its next-generation HBM4 chips, which will succeed the HBM3E offerings, will pack 60% more performance while reducing power consumption by 20%. The company has already provided samples of HBM4 to customers and expects to start the volume production of this product in 2026. Micron's focus on pushing the envelope on the product development front is the right thing to do, considering that the HBM market is set to take off impressively in the long run. Bloomberg Intelligence estimates that the HBM market could generate annual revenue of $130 billion by 2030. That would be a huge jump over the $4 billion revenue this segment clocked in 2023. Micron, therefore, still has massive room for growth in this segment, both in the short and long run. The strong momentum provided by the HBM business tells us why the company's guidance for the current quarter points toward another solid increase in its top and bottom lines. Micron has guided for $10.7 billion in revenue for the fiscal fourth quarter, which would be a 38% increase over the prior-year period. That would be a slight improvement over the revenue growth it reported in the previous quarter. Meanwhile, Micron's forecast of $2.50 per share in earnings for the current quarter suggests its bottom line will more than double from the year-ago period's reading of $1.18 per share. The stronger growth in Micron's earnings can be attributed to a favorable memory pricing environment. Memory manufacturers such as Micron have been increasing the prices of chips on account of solid HBM demand and supply constraints. According to TrendForce, the average price of dynamic random access memory (DRAM) chips increased in the range of 3% to 8% in the second quarter, owing to an increase in sales of HBM, along with an improvement in the demand for mobile and consumer-oriented DRAM chips. Looking ahead, Micron management estimates that adoption of AI-enabled personal computers (PCs) and smartphones will contribute to the company's growth in the coming quarters. So Micron's catalysts are likely to get stronger as the year progresses, and that could pave the way for more upside in the second half of 2025 and beyond. We have already seen how rapidly Micron's revenue and earnings are growing. However, the company's valuation suggests that it is extremely undervalued, considering the phenomenal growth it's been clocking. Micron has a trailing price-to-earnings ratio of 22, while the forward earnings multiple is even more attractive at 11. The company is on track to end the current fiscal year with adjusted earnings of $7.76 per share (based on its guidance of $2.50 per share for fiscal Q4 and cumulative earnings of $5.26 per share in the first three quarters of the year). That would be a huge increase over its fiscal 2024 earnings of $1.30 per share. What's more, analysts are expecting a 54% spike in Micron's earnings in the next fiscal year to $12.05 per share. If the stock maintains its trailing earnings multiple of 23 after a year, its stock price could hit $265. That would be more than double current levels. As such, Micron's latest quarterly results should give its rally a nice shot in the arm in the second half of the year, as the market could reward its terrific growth with a richer valuation, while the projected earnings growth for the next fiscal year indicates that it could continue soaring in 2026 as well. 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — 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 . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Prediction: This Growth Stock Will Skyrocket in the Second Half of 2025 was originally published by The Motley Fool
Globe and Mail
04-07-2025
- Business
- Globe and Mail
Prediction: This Growth Stock Will Skyrocket in the Second Half of 2025
Key Points Micron Technology has clocked impressive gains so far in 2025, and it looks set to fly higher in the second half of the year as well. The company's latest quarterly results make it clear that it is benefiting big time from fast-growing demand for memory chips used in various applications. Micron's solid growth potential and attractive valuation make the stock a no-brainer buy right now, considering the potential upside it could deliver. Memory specialist Micron Technology (NASDAQ: MU) has been delivering terrific growth in recent quarters thanks to booming demand for its chips deployed in data centers, smartphones, and personal computers (PCs), which explains why the stock has clocked solid gains of 46% so far this year. Micron released its fiscal 2025 third-quarter results (for the three months ended May 29) on June 25. A closer look at the company's numbers and guidance suggests that its rally is here to stay in the second half of the year. Let's look at the reasons why investors can expect Micron stock to deliver more upside for the rest of the year as well. Artificial intelligence (AI) has supercharged Micron Technology's growth Micron's fiscal Q3 revenue shot up 37% year over year to $9.3 billion, while its adjusted earnings more than tripled to $1.91 per share. The numbers crushed Wall Street's expectations of $1.60 per share in earnings on revenue of $8.86 billion. Micron CEO Sanjay Mehrotra remarked on the latest earnings conference call that its data center revenue more than doubled from the year-ago period and hit record levels last quarter. This terrific growth was driven by the healthy demand for Micron's high-bandwidth memory (HBM) chips that are integrated with AI accelerators from the likes of Nvidia and AMD. Micron management points out that it is shipping its HBM chips in high volumes to four customers right now, who are integrating them with both graphics cards and custom AI processors. Importantly, Micron is not resting on its laurels and is focused on further improving the performance of its HBM chips. The company claims its next-generation HBM4 chips, which will succeed the HBM3E offerings, will pack 60% more performance while reducing power consumption by 20%. The company has already provided samples of HBM4 to customers and expects to start the volume production of this product in 2026. Micron's focus on pushing the envelope on the product development front is the right thing to do, considering that the HBM market is set to take off impressively in the long run. Bloomberg Intelligence estimates that the HBM market could generate annual revenue of $130 billion by 2030. That would be a huge jump over the $4 billion revenue this segment clocked in 2023. Micron, therefore, still has massive room for growth in this segment, both in the short and long run. The strong momentum provided by the HBM business tells us why the company's guidance for the current quarter points toward another solid increase in its top and bottom lines. Micron has guided for $10.7 billion in revenue for the fiscal fourth quarter, which would be a 38% increase over the prior-year period. That would be a slight improvement over the revenue growth it reported in the previous quarter. Meanwhile, Micron's forecast of $2.50 per share in earnings for the current quarter suggests its bottom line will more than double from the year-ago period's reading of $1.18 per share. The stronger growth in Micron's earnings can be attributed to a favorable memory pricing environment. Memory manufacturers such as Micron have been increasing the prices of chips on account of solid HBM demand and supply constraints. According to TrendForce, the average price of dynamic random access memory (DRAM) chips increased in the range of 3% to 8% in the second quarter, owing to an increase in sales of HBM, along with an improvement in the demand for mobile and consumer-oriented DRAM chips. Looking ahead, Micron management estimates that adoption of AI-enabled personal computers (PCs) and smartphones will contribute to the company's growth in the coming quarters. So Micron's catalysts are likely to get stronger as the year progresses, and that could pave the way for more upside in the second half of 2025 and beyond. A big reason to buy the stock right now We have already seen how rapidly Micron's revenue and earnings are growing. However, the company's valuation suggests that it is extremely undervalued, considering the phenomenal growth it's been clocking. Micron has a trailing price-to-earnings ratio of 22, while the forward earnings multiple is even more attractive at 11. The company is on track to end the current fiscal year with adjusted earnings of $7.76 per share (based on its guidance of $2.50 per share for fiscal Q4 and cumulative earnings of $5.26 per share in the first three quarters of the year). That would be a huge increase over its fiscal 2024 earnings of $1.30 per share. What's more, analysts are expecting a 54% spike in Micron's earnings in the next fiscal year to $12.05 per share. If the stock maintains its trailing earnings multiple of 23 after a year, its stock price could hit $265. That would be more than double current levels. As such, Micron's latest quarterly results should give its rally a nice shot in the arm in the second half of the year, as the market could reward its terrific growth with a richer valuation, while the projected earnings growth for the next fiscal year indicates that it could continue soaring in 2026 as well. 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor 's total average return is1,049% — a market-crushing outperformance compared to179%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 June 30, 2025
Yahoo
29-06-2025
- Business
- Yahoo
Micron Technology, Inc. (MU): 'It's The Old Micron!' Says Jim Cramer
Micron Technology, Inc. (NASDAQ:MU) is one of the . Micron Technology, Inc. (NASDAQ:MU) is the only American company that makes and sells leading-edge memory chips. This provides the firm with a wide moat at least when it comes to domestic exposure particularly due to President Trump's efforts to expand US manufacturing. Micron Technology, Inc. (NASDAQ:MU) is also NVIDIA's only American supplier of high-end memory chips to NVIDIA for the latter's high-end AI GPUs. The firm's shares have gained 42% year-to-date, with a fresh catalyst being its fiscal third-quarter earnings report which saw Micron Technology, Inc. (NASDAQ:MU)'s $9.3 billion in revenue and $1.91 in earnings beat analyst estimates of $8.87 billion and $1.60. The firm's $10.7 billion in guidance also beat estimates of $9.88 billion. Cramer discussed the stock's recent performance ahead of interviewing its CEO: 'You know David, about a year and half ago, I tried to get Sanjay Mehrotra to say incredibly bullish things. He pulled me back. He said, Jim it's not there yet. I'll tell you when it's there. Well, you know what, it's there now. Micron shares, moving higher after beating the top and bottom line. Shares now up more than 55% year-to-date. It's the old Micron!' A close-up view of a computer motherboard with integrated semiconductor chips. Earlier, Cramer discussed Micron Technology, Inc. (NASDAQ:MU)'s share price performance: 'I think it is getting a little toppy. I think the market's getting a little toppy and Micron's going to go with it. Now, it went down to 66. I think it could go down to 80 without a problem, and then you'll probably want to buy it again. But I sense that there is a trade here, not an investment, for the moment, and you need to do a little [kaching kaching].' While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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. Sign in to access your portfolio
Yahoo
29-06-2025
- Business
- Yahoo
Microsoft Corporation (MSFT) Could Finally Benefit From A Major Catalyst, Says Jim Cramer
Microsoft Corporation (NASDAQ:MSFT) is one of the . Microsoft Corporation (NASDAQ:MSFT) is the world's largest consumer software company. It was also an early mover in the AI software market due to its partnership with OpenAI. However, 2025 has seen the narrative around Microsoft Corporation (NASDAQ:MSFT) shift a little bit as the firm's relationship with OpenAI purportedly sours. Yet, at the same time, the stock has benefited from a strong earnings report which indicated to investors that Microsoft Corporation (NASDAQ:MSFT) has finally started to perform well in its cloud computing business. Cramer discussed the firm in the context of these factors and AI PCs: 'It's moving because this Morgan Stanley piece revisiting Microsoft plus OpenAI. . . .Azure AI revenue, very strong. In keeping with what you [David] said, when you asked Sanjay Mehrotra the CEO [why the AI-enabled PC hasn't taken off]. . his response was, just you wait. And that would be incredible for Microsoft. People don't realize Sanjay, I know that Sanjay was a bit verbose, in his answers. . .look I've known Sanjay for years, you can tell him after this, but I think what you have is, you have a PC market that could be exploding. And I didn't think that.' A development team working together to create the next version of Windows. Earlier the CNBC TV show host discussed Microsoft Corporation (NASDAQ:MSFT)'s relationship with OpenAI: 'We didn't even talk about Microsoft and the war that must be going with ChatGPT. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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. 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
