New Investment Option in AI Stocks: Roundhill Memory ETF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Roundhill Memory ETF Attracts Investment: In less than two months, the Roundhill Memory ETF has garnered approximately $5 billion in investments, with one day alone seeing $1 billion inflow, indicating strong market interest in AI-related stocks that could drive share prices higher.
- Western Digital's Performance Soars: Western Digital reported a 45% revenue increase to $3.3 billion in Q3, with diluted non-GAAP earnings jumping 97% to $2.72, reflecting a surge in demand for high-capacity storage driven by the AI data economy, enhancing the company's competitive position.
- SanDisk Sales Surge: SanDisk's revenue skyrocketed 251% over the past year to nearly $6 billion, with data center memory sales accounting for 25% of total sales, highlighting its potential in a rapidly growing market, although its current P/E ratio of about 53 suggests investors should proceed with caution.
- Micron Technology Sees Strong Demand: Micron Technology experienced a 196% revenue spike to $23.9 billion in Q3, with non-GAAP earnings soaring 682% to $12.20 per share, and securing its first five-year contract, indicating that demand for memory in the AI era will likely continue to grow, positioning it as a strategic asset in future technology developments.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 776.010
Low
235.00
Averages
336.12
High
500.00
Current: 776.010
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology Approaches $1 Trillion Market Value Club
- Market Value Milestone: Micron Technology, currently valued at approximately $900 billion, is just a 10% stock price increase away from joining the $1 trillion market value club, with its recent strong stock performance suggesting this milestone could be reached within days.
- Rapid Revenue Growth: Micron's quarterly revenue surged from $13.6 billion two quarters ago to $23.9 billion last quarter, with management projecting $33.5 billion for the next quarter, reflecting robust demand and pricing power in the memory chip market.
- Memory Shortage Situation: A global shortage of memory chips, particularly driven by surging demand from AI data centers, has led to skyrocketing prices, further enhancing profit margins for Micron and its competitors.
- Optimistic Future Outlook: Management indicated that current production capacity can only meet half to two-thirds of total demand, with the data center memory market expected to grow from $35 billion in 2025 to $100 billion in 2028, highlighting Micron's significant growth potential.
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Nvidia vs Micron: Which Stock is the Better Buy?
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- Nvidia's Stability: Nvidia stands out in the GPU market with superior hardware and ecosystem, projecting a 79% revenue growth for Q1 2024 and 86% for Q2, indicating strong business stability and market demand.
- Micron's Growth Potential: Despite facing commoditization in the memory market, Micron expects a staggering 261% revenue growth next quarter and 246% in the following quarter, showcasing robust performance in a high-demand environment, although future price declines pose risks.
- Valuation Discrepancy: Nvidia's price-to-earnings ratio is about double that of Micron, raising questions about Micron's lower valuation despite faster growth; the resolution of the memory shortage could lead to a return to single-digit P/E ratios for Micron.
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- Margin Improvement: The company's gross margin has surpassed 70%, a figure that seemed almost impossible three years ago, indicating significant progress in cost control and product value enhancement, thereby boosting its profitability.
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Micron Technology Approaches $1 Trillion Market Value Club
- Market Value Milestone: Micron Technology, currently valued at approximately $900 billion, is just a 10% stock price increase away from joining the $1 trillion market value club, with its recent strong stock performance suggesting this milestone could be reached within days.
- Rapid Revenue Growth: Micron's quarterly revenue surged from $13.6 billion two quarters ago to $23.9 billion last quarter, with management projecting $33.5 billion for the next quarter, reflecting robust demand and pricing power in the memory chip market.
- Memory Shortage Situation: A global shortage of memory chips, particularly driven by surging demand from AI data centers, has led to skyrocketing prices, further enhancing profit margins for Micron and its competitors.
- Optimistic Future Outlook: Management indicated that current production capacity can only meet half to two-thirds of total demand, with the data center memory market expected to grow from $35 billion in 2025 to $100 billion in 2028, highlighting Micron's significant growth potential.
See More
Nvidia vs Micron: Which Stock is the Better Buy?
- Strong Market Demand: Both Nvidia and Micron are benefiting from heightened data center demand, with Nvidia's GPUs and Micron's memory chips playing crucial roles in the AI training ecosystem, driving stock price increases for both companies.
- Nvidia's Stability: Nvidia stands out in the GPU market with superior hardware and ecosystem, projecting a 79% revenue growth for Q1 2024 and 86% for Q2, indicating strong business stability and market demand.
- Micron's Growth Potential: Despite facing commoditization in the memory market, Micron expects a staggering 261% revenue growth next quarter and 246% in the following quarter, showcasing robust performance in a high-demand environment, although future price declines pose risks.
- Valuation Discrepancy: Nvidia's price-to-earnings ratio is about double that of Micron, raising questions about Micron's lower valuation despite faster growth; the resolution of the memory shortage could lead to a return to single-digit P/E ratios for Micron.
See More
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- Bloom Energy Breakthrough: Bloom Energy reported a 130% year-over-year revenue increase in Q1, prompting management to raise full-year guidance from 60% to 80%, indicating strong performance in the AI era and expected sustained profitability.
- Sandisk Demand Surge: Sandisk's revenue soared 251% year-over-year in Q3 of fiscal 2026, driven by a 233% increase in data center revenue, with management forecasting a sevenfold revenue growth in Q4, highlighting its strong demand and profit potential in the AI storage market.
- Lumentum Revenue Doubling: Lumentum achieved a 90% year-over-year revenue increase in Q3 of fiscal 2026 and reported GAAP operating profit, with the CEO stating that growth in optical products is expected to enhance earnings power, reflecting strong demand from data centers.
- Micron's Technological Edge: Micron experienced a 70% year-over-year revenue increase in Q2 of fiscal 2026, with earnings per share rising from $4.60 to $12.07, benefiting from high demand and low supply for AI chips, and is expected to maintain growth momentum in the short term.
See More
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- Geopolitical Tensions: President Trump warned Iran to
See More
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- Surging Market Demand: Babcock & Wilcox (B & W) currently holds a $2.7 billion backlog, with $2.4 billion stemming from its partnership with Applied Digital, indicating a robust growth in power demand driven by the data center boom, which may lead to a revival of coal.
- Significant Stock Performance: B & W's stock has surged 244% over the past year, rising from below $1 to $21, reflecting optimistic market expectations for its future growth potential, despite facing controversies related to Applied Digital.
- Policy Support for Coal: President Trump and the Energy Secretary are actively working to prevent the closure of coal plants, viewing coal as a vital national security resource, which could provide new business opportunities for companies like B & W, despite ongoing environmental concerns.
- Changing Competitive Landscape: B & W possesses unique capabilities in building natural gas power plants, and with GE Vernova currently at capacity, B & W's expansion potential may position it favorably in the future energy market, particularly in the combined use of coal and natural gas.
See More
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- Significant Revenue Growth: Micron Technology reported a revenue of $23.9 billion for Q2 FY2026, marking a remarkable 196% year-over-year increase, which underscores the company's strong demand and growth potential in the memory chip market, further solidifying its position in the semiconductor industry.
- Margin Improvement: The company's gross margin has surpassed 70%, a figure that seemed almost impossible three years ago, indicating significant progress in cost control and product value enhancement, thereby boosting its profitability.
- Market Competitiveness Analysis: Although Micron's high-bandwidth memory is 100% sold out through 2026, concerns about its future pricing power persist, as its role in the supply chain resembles a
See More
