Latest news with #SanjayMehrotra
Yahoo
10 hours ago
- Business
- Yahoo
Micron (MU) Commits $200 Billion to U.S. Chip Manufacturing Expansion
Micron Technology (MU, Financials) on Thursday unveiled a $200 billion plan to expand U.S. chip production, aligning with President Donald Trump's push for domestic manufacturing. Warning! GuruFocus has detected 3 Warning Sign with MU. The company will spend $150 billion on new and expanded fabs in Idaho, New York, and Virginia, alongside $50 billion for research and development, including high-bandwidth memory packaging. Micron said it has secured federal, state, and local support for the projects, including up to $6.4 billion through the CHIPS and Science Act, and expects to benefit from the Advanced Manufacturing Investment Credit. CEO Sanjay Mehrotra said the expansion would strengthen U.S. tech leadership, create tens of thousands of jobs, and ensure supply chain resilience. Micron shares were little changed Thursday but remain near a 12-month high, up 37% year to date. This article first appeared on GuruFocus.
Yahoo
18 hours ago
- Business
- Yahoo
Micron Plots $200 Billion U.S. DRAM Buildout
Micron Technology (NASDAQ:MU) is boosting its U.S. memory-manufacturing and R&D investment to $200 billion, aiming to onshore 40 percent of its DRAM output. The plan calls for two new high-volume fabs in Idahoone slated to start DRAM production in 2027four more fabs in New York, and an expanded, modernized facility in Virginia, alongside advanced HBM packaging and research initiatives. To finance the buildout, Micron has locked in $275 million under the CHIPS and Science Act and is eligible for up to $6.4 billion in direct funding for its Idaho and New York sites. CEO Sanjay Mehrotra said the move underscores our commitment to driving innovation and strengthening the domestic semiconductor industry, while Commerce Secretary Gina Raimondo added the investment will ensure the U.S. advances its lead across critical industries like AI, automotive, and aerospace and defense. Amazon (NASDAQ:AMZN) Web Services chief Matt Garman praised the expansion as a significant milestone for the semiconductor industry. Even as shares dipped 0.21 percent on the news, analysts note that onshoring DRAM production could shorten supply chains, improve margin visibility and reduce geopolitical risk. Why It Matters: With global memory demand surgingespecially for AI applicationssecuring a domestic production base could give Micron a strategic edge and help the U.S. lessen dependence on overseas fabs. Additionally, Micron Technology has rebounded from earlier lows and now carries a 12-month price target of $121.82, suggesting a modest 5.26% upside. The projections vary widely, with a high-end forecast of $172 and a low of $60, signaling some uncertainty. After dipping below $70 earlier this year, the stock has climbed steadily and analysts seem cautiously optimistic moving forward. This article first appeared on GuruFocus.
Yahoo
18 hours ago
- Business
- Yahoo
Micron Plots $200 Billion U.S. DRAM Buildout
Micron Technology (NASDAQ:MU) is boosting its U.S. memory-manufacturing and R&D investment to $200 billion, aiming to onshore 40 percent of its DRAM output. The plan calls for two new high-volume fabs in Idahoone slated to start DRAM production in 2027four more fabs in New York, and an expanded, modernized facility in Virginia, alongside advanced HBM packaging and research initiatives. To finance the buildout, Micron has locked in $275 million under the CHIPS and Science Act and is eligible for up to $6.4 billion in direct funding for its Idaho and New York sites. CEO Sanjay Mehrotra said the move underscores our commitment to driving innovation and strengthening the domestic semiconductor industry, while Commerce Secretary Gina Raimondo added the investment will ensure the U.S. advances its lead across critical industries like AI, automotive, and aerospace and defense. Amazon (NASDAQ:AMZN) Web Services chief Matt Garman praised the expansion as a significant milestone for the semiconductor industry. Even as shares dipped 0.21 percent on the news, analysts note that onshoring DRAM production could shorten supply chains, improve margin visibility and reduce geopolitical risk. Why It Matters: With global memory demand surgingespecially for AI applicationssecuring a domestic production base could give Micron a strategic edge and help the U.S. lessen dependence on overseas fabs. Additionally, Micron Technology has rebounded from earlier lows and now carries a 12-month price target of $121.82, suggesting a modest 5.26% upside. The projections vary widely, with a high-end forecast of $172 and a low of $60, signaling some uncertainty. After dipping below $70 earlier this year, the stock has climbed steadily and analysts seem cautiously optimistic moving forward. 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
2 days ago
- Business
- Yahoo
Micron boosts planned U.S. investment by $30 billion amid AI-driven demand
-- Micron Technology Inc (NASDAQ:MU) has announced plans to expand its U.S.-based semiconductor manufacturing and research footprint with an investment totaling approximately $200 billion. The move, in partnership with the Trump administration, includes $150 billion earmarked for manufacturing and $50 billion for research and development, and will create an estimated 90,000 direct and indirect jobs. The initiative expands Micron's ambitions beyond previous plans by $30 billion, including the development of a second memory fabrication facility in Boise, Idaho, and the modernization of its plant in Manassas, Virginia. The company will also bring advanced packaging capabilities for High Bandwidth (NASDAQ:BAND) Memory (HBM) to the U.S., targeting growth fueled by AI adoption. The expanded footprint includes up to six high-volume, leading-edge memory fabs across Idaho and New York. Micron aims to produce 40% of its DRAM in the U.S., reinforcing its competitive position amid rising demand for AI-related computing infrastructure. Construction on Micron's first fab in Idaho is already underway, with production slated to begin in 2027. The newly announced second fab will further increase DRAM output, while site preparation for the first New York facility is expected to commence this year once remaining regulatory reviews are complete. 'Micron's U.S. memory manufacturing and R&D plans underscore our commitment to driving innovation and strengthening the domestic semiconductor industry,' Micron CEO Sanjay Mehrotra stated. 'This approximately $200 billion investment will reinforce America's technological leadership, create tens of thousands of American jobs across the semiconductor ecosystem and secure a domestic supply of semiconductors—critical to economic and national security.' The development has attracted endorsements from across industry, including Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), two companies central to the AI hardware and software ecosystem. 'Micron's investment in advanced memory manufacturing and HBM capabilities in the U.S., with support from Trump Administration, is an important step forward for the AI ecosystem,' said Nvidia CEO Jensen Huang. Microsoft CEO Satya Nadella added, 'Strengthening semiconductor manufacturing in the U.S. will drive new innovation, create high-skilled jobs, and further American competitiveness. In addition to its manufacturing investment, Micron has committed over $325 million to workforce development initiatives in Idaho, New York, and Virginia. These efforts include academic partnerships, curriculum development, and training programs to ensure a stable pipeline of talent to support the company's growth across critical technology sectors. Related articles Micron boosts planned U.S. investment by $30 billion amid AI-driven demand FTSE 100 today: shares rise as U.K. GDP falls; Pound nears $1.36; Tesco gains Israel considers military action against Iran, sources tell ABC News
Globe and Mail
26-03-2025
- Business
- Globe and Mail
Nvidia Just Gave Micron Stock a Big Boost. Should You Buy It Now?
Micron Technology (MU), valued at a market capitalization of $105 billion, is among the largest semiconductor stocks in the world. The chip stock has gained investor attention in recent trading sessions after Citi analysts highlighted positive catalysts tied to Nvidia's (NVDA) next-generation GPU plans. According to Citi analyst Christopher Danely, Nvidia's upcoming Rubin chip will integrate 288GB of HBM4 DRAM, representing a 50% increase over the current Blackwell architecture. This in turn implies that Nvidia will have a greater demand for DRAM solutions from Micron. This memory expansion should benefit Micron, which already maintains impressive gross margins of 70% on its high-bandwidth memory products. Micron's HBM4 technology is a significant advancement in high-performance memory. The chip, scheduled for mass production in 2026, offers 50% better performance than its predecessor. Despite competition from SK Hynix and Samsung, Micron aims to capture market share in the rapidly expanding AI chip segment, where memory bandwidth is increasingly critical. Micron stock has returned close to 250% to shareholders in the last 10 years. Despite its outsized gains, the tech stock is down roughly 40% from its 52-week high, allowing you to buy the dip. Is Micron Stock a Good Buy Right Now? Micron Technology shares surged after the memory chipmaker reported stronger-than-expected fiscal Q2 (ending in February) results. It also raised its outlook for fiscal 2025 due to robust demand for high-bandwidth memory (HBM) used in artificial intelligence applications. In Q2, Micron reported adjusted earnings of $1.56 per share on revenue of $8.05 billion, beating consensus estimates of $1.43 per share on $7.89 billion, respectively. Revenue increased 38% from the year-ago period, while net income nearly doubled to $1.58 billion. Micron's performance was fueled by record data center DRAM revenue, with HBM revenue growing more than 50% sequentially to exceed $1 billion for the first time. Its fiscal Q2 DRAM revenue reached $6.1 billion, accounting for 76% of total revenue and increasing 47% year-over-year. 'Micron is in the best competitive position in our history, and we are achieving share gains across high-margin product categories in our industry,' said CEO Sanjay Mehrotra on the earnings call. 'Our strong product momentum has enabled us to build deeper customer relationships, and Micron's industry-leading products are now more firmly entrenched in our customers' high-value product roadmaps.' For the current fiscal third quarter, Micron forecasts revenue of approximately $8.8 billion, above estimates of $8.5 billion. It expects adjusted earnings of $1.57 per share, ahead of Wall Street's consensus of $1.47 per share. Micron has raised its forecast for the 2025 HBM market to over $35 billion and expects to reach HBM market share in line with its overall DRAM supply share by the end of calendar 2025. Micron's HBM3E 12-high product, which delivers 50% higher memory capacity with 20% lower power consumption than competing products, is now in volume production. Micron is also making significant investments to expand its manufacturing capabilities, including breaking ground on an HBM advanced packaging facility in Singapore and progressing on its new DRAM fab in Idaho, which received its first CHIPS Act funding disbursement during the quarter. Is MU Stock Undervalued? Analysts tracking Micron stock expect its revenue to rise from $25.1 billion in fiscal 2024 to $45 billion in 2026. Comparatively, adjusted earnings per share are forecast to rise from $1.30 in 2024 to $11.08 in 2026. The company's free cash flow is also projected to improve from $121 million in 2024 to $5.22 billion in 2026. So, priced at 8.8x forward earnings and 21x forward free cash flow, the tech stock is relatively cheap. Out of the 30 analysts covering Micron stock, 25 recommend 'Strong Buy,' two recommend 'Moderate Buy,' two recommend 'Hold,' and one recommends 'Strong Sell.' The average target price for MU stock is $130.57, indicating an upside potential of almost 40% from current levels.
