Latest news with #DRAM
Wall Street Journal
8 hours ago
- Business
- Wall Street Journal
SK Hynix to Boost Investment After Record Results on Strong AI Chip Demand
SK Hynix 000660 0.09%increase; green up pointing triangle, the main supplier of high-bandwidth-memory products for Nvidia, plans to increase spending this year to meet strong demand for artificial-intelligence chips that helped it achieve a record second quarter. The South Korean memory-chip maker said Thursday that aggressive AI investments by global big technology companies led to a steady increase in demand for AI memory chips, including 12-layer HBM3E products. Shipments of both DRAM and NAND flash memory products were higher than expected, it said.
Globe and Mail
7 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
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Applied Materials Soars 14% in a Month: Time to Buy or Hold the Stock?
Applied Materials AMAT shares have climbed 14.4% in a month, outperforming the Zacks Electronics - Semiconductors industry's return of 6.2%. This outperformance raises the question: Should investors accumulate AMAT shares or book profits and exit the investment? Applied Materials One Month Price Performance Chart AMAT Benefits From Growing Adoption of Its Products Applied Materials is experiencing strong traction in its etching, deposition, metrology and inspection tools. AMAT's Sym3 Magnum etch system, Cold Field Emission eBeam technology, gate-all-around, backside power delivery, and 3D DRAM technology nodes are gaining traction as they play crucial roles in the manufacturing and inspection of high-performance processing and memory chips used for AI and HPC workloads. AMAT's Sym3 Magnum etch system has yielded more than $1.2 billion in revenues since its launch in February 2024. Moreover, in the second quarter of fiscal 2025, AMAT's management anticipated AMAT's revenues from DRAM customers to grow more than 40% in fiscal 2025. Earlier, Applied Materials reported that its revenues from advanced semiconductor nodes crossed $2.5 billion in 2024, and it expected the figure to double in fiscal 2025 as customers' adoption of its GAA and backside power delivery solutions grows. Applied Materials stands to gain from the rising demand for advanced chips required to power AI-centric data centers. The company's deep expertise in logic and solid position in DRAM patterning have aided it in maintaining a stronghold in the semiconductor space. Its patterning systems and technologies, which are designed to address the shrinking pattern dimension challenges and the growing complexity in vertical stacking, can play a crucial role in high-performance chip development for AI. Due to the favorable mix of products and traction in high-margin solutions, Applied Materials' gross margin has been experiencing positive momentum for the past four quarters and came in at 49.2% in the second quarter of fiscal 2025, which is also the highest gross margin since the fourth quarter of fiscal 2000. Broad Portfolio Gives AMAT a Competitive Edge The semiconductor equipment market in which AMAT operates has other larger players, including Lam Research LRCX, ASML Holding ASML and KLA Corporation KLAC. However, AMAT differentiates from its competitors by providing comprehensive deposition, etch, metrology, and packaging solutions, whereas its competitors specialize only in one vertical or the other. AMAT also commands a strong integration of materials science and fabrication; the others don't. For instance, ASML Holding specializes in the photolithography and advanced manufacturing equipment segment. KLA Corporation is a dominant competitor in the wafer inspection space and Lam Research has a strong atomic layer deposition portfolio. AMAT stands out because of its full-stack portfolio, strength in materials engineering, and ability to co-optimize across fabrication steps. This is the reason why, despite having competition from Lam Research, KLA Corporation and ASML Holdings, Applied Materials is able to keep its margins intact as it's not just a tools vendor. Applied Materials offers end-to-end solutions that improve chip yield, power, performance, and cost. The Zacks Consensus Estimate for AMAT's earnings per share is pegged at $9.47, indicating year-over-year growth of 9.5%. Image Source: Zacks Investment Research Applied Materials is trading at a 12-month forward P/S ratio of 5.34, significantly below the industry average of 6.64. Given its dominance in semiconductor equipment and AI-driven chip manufacturing, this valuation discount suggests strong upside potential over the long term. AMAT Forward 12 Month (P/S) Valuation Chart Image Source: Zacks Investment Research Conclusion: Buy AMAT Stock Now Applied Materials remains a key player in semiconductor manufacturing, with a strong position in AI-driven chip development, advanced packaging and next-generation process technology. For investors, investing in AMAT stock remains the best approach. Currently, Applied Materials carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> 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 KLA Corporation (KLAC): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Yahoo
14-07-2025
- Business
- Yahoo
Mizuho Securities Maintains ‘Outperform' Rating on Micron Technology, Inc. (MU); Raises PT
Billionaire Kerr Neilson has bought over $81 million worth of shares in Micron Technology, Inc. (NASDAQ:MU), representing 4.72% of his stock portfolio, securing the company a spot in . Carol Gauthier/ On June 26, 2025, Mizuho Securities raised its price target on Micron Technology, Inc. (NASDAQ:MU) from $130 to $150, maintaining an 'Outperform' rating. This update followed the company's announcement of strong earnings results for Q3 fiscal 2025. Meanwhile, the company's share price is up 46.76% YTD, maintaining strong momentum. For the quarter, Micron Technology, Inc. (NASDAQ:MU) exceed both its revenue and EPS expectations. This was driven by continued demand for its DRAM and high-bandwidth memory (HBM) chips. The analyst acknowledged the company's expanding role in the AI market. Its HBM market share is expected to reach 25% by the end of 2025, with segment revenue projected at $17 billion in 2026, driven by the launch of HBM4 technology. Improved pricing and bit shipments are expected to drive the company to a strong second half of 2025. Micron Technology, Inc. (NASDAQ:MU) is a memory and storage products manufacturer. Operating globally, it is known for the Micron and Crucial brands, serving data centers, mobile, automotive, and consumer electronics sectors. 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: 7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.
Yahoo
14-07-2025
- Business
- Yahoo
Deutsche Bank Initiates Coverage of Micron Technology (MU) stock with Buy Rating
Micron Technology, Inc. (NASDAQ:MU) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Deutsche Bank initiated coverage of the company's stock with a 'Buy' rating and a price objective of $150. The analysts remain optimistic on the cyclical and secular backdrop for Micron Technology, Inc. (NASDAQ:MU), driven mainly by increased demand for High Bandwidth Memory (HBM). Deutsche Bank opines that HBM remains an underrated driver of Gen/Gen AI processor performance improvements and expects that growth in HBM bits and ASPs can fuel DRAM revenue growth as well as profitability above historical levels. A close-up view of a computer motherboard with integrated semiconductor chips. On the traditional DRAM side, the bank's analysts expect continued strength aided by increased content per device and improvement in supply-demand dynamics. Micron Technology, Inc. (NASDAQ:MU) delivered record revenue in Q3 2025, thanks to the all-time-high DRAM revenue, including ~50% sequential growth in HBM revenue. Furthermore, the data center revenue more than doubled YoY in Q3 2025 and touched a quarterly record. Moving forward, Micron Technology, Inc. (NASDAQ:MU) expects to deliver revenue (GAAP) of $10.7 billion (± $300 million), and gross margin of 41.0% (± 1.0%) in Q4 2025. 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: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
