Nvidia Takes a Backseat as Micron's Surge Reshapes the AI ETF Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 24 2025
0mins
Source: Benzinga
Micron's Strong Performance: Micron Technology Inc reported fiscal Q4 profits exceeding expectations, with $11.32 billion in revenue and earnings per share of $3.03, positioning itself as a key player in the semiconductor market amid rising AI demand.
Investment Opportunities: Investors can leverage Micron's growth through the Direxion Daily MU Bull 2X Shares ETF or diversify their portfolios with broader ETFs like VanEck Semiconductor ETF and iShares Semiconductor ETF, which include both Micron and Nvidia.
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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: 995.870
Low
235.00
Averages
336.12
High
500.00
Current: 995.870
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's Optimistic Earnings Outlook Ahead of Report
- Stock Surge: Micron Technology's shares have surged 244% in 2026, crossing a $1 trillion market capitalization, making it one of only three memory companies to reach this milestone, showcasing its strong performance driven by AI demand.
- Gross Margin Focus: The gross margin is expected to reach approximately 81% in the third quarter, a significant increase from 37% a year earlier, reflecting Micron's enhanced pricing power and profitability in the memory market.
- Supply-Demand Tightness: High-bandwidth memory (HBM) is in short supply, with Micron's entire 2026 HBM supply already sold out, indicating that prices may remain firm in the future, further solidifying its market position.
- Market Risks: Despite the optimistic outlook, cyclical risks in the memory industry persist, as competitors like Samsung and SK Hynix are expanding capacity, which could impact future pricing and profit margins.
See More
Asian Tech Stocks Surge on US-Iran Peace Deal
- Positive Market Reaction: Asian tech stocks surged on Monday as the US and Iran reached a peace deal, with SoftBank's shares rising over 12%, reflecting investor optimism about market prospects.
- Japanese Tech Leads Gains: Tokyo Electron and Advantest saw increases of 9.19% and 7.69% respectively, showcasing the strong performance of Japan's tech sector in the global market and boosting investor confidence.
- Semiconductor Giants Shine: Samsung Electronics and SK Hynix gained 4.65% and 6.42%, respectively, with both companies surpassing a $1 trillion market valuation, underscoring their leadership in the global semiconductor industry.
- Significant Geopolitical Impact: As tensions ease in the Middle East, market risk appetite is rebounding, which is expected to further drive tech stock gains, particularly in the burgeoning AI investment landscape.
See More
U.S. Chip Stocks Rally on Iran Deal Announcement
- Market Reaction: Following President Trump's announcement of a peace deal with Iran, Intel and AMD stocks surged approximately 5% and 6.5% respectively, while Nvidia saw a 2% increase, indicating a positive market sentiment towards reduced geopolitical risks.
- Investor Sentiment Shift: Despite Nvidia's stubborn stock performance, sentiment on Stocktwits turned extremely bearish, reflecting retail investors' concerns about future price movements, which could influence short-term trading decisions.
- Market Expectation Adjustments: As investor focus shifts towards the upcoming Federal Reserve interest rate meeting, expectations have changed, with a growing adaptation to a prolonged high-interest-rate environment potentially impacting future investment strategies.
- Analyst Insights: Goldman Sachs raised its price target for Micron while maintaining a neutral stance, indicating that investor expectations remain high ahead of the company's earnings report on June 24, despite a 1.6% decline in its stock last week.
See More
Investment Opportunities in AI Build-Out Beyond Nvidia
- Diverse Investment Opportunities: Arista Networks, Micron, Broadcom, Eaton, and Applied Digital offer various investment avenues for investors looking to capitalize on AI demand growth beyond Nvidia, highlighting the potential need for networking, memory, and data center capacity.
- Growing Market Demand: As AI demand rises, global needs for networking, memory, custom chips, and data centers are expected to exceed many investors' expectations, creating new growth opportunities for related companies.
- Optimistic Industry Outlook: These companies are becoming increasingly vital in the AI ecosystem, particularly in providing infrastructure and support, which could drive their stock prices higher and attract more investor interest.
- Shift in Investor Focus: Investors should pay attention to the potential of these companies in the AI build-out, especially outside of Nvidia, as they may uncover more investment opportunities and sources of returns.
See More
AI Demand Fuels Growth in Networking and Storage
- Growing AI Demand: As demand for artificial intelligence surges, companies like Arista Networks, Micron, Broadcom, Eaton, and Applied Digital may experience increased needs for networking, memory, and data center capacity, driving their business growth.
- Diverse Investment Opportunities: These companies offer investors diversified opportunities beyond Nvidia, indicating that other technology providers also hold potential within the AI ecosystem.
- Market Performance Comparison: Although Arista Networks did not make it onto The Motley Fool's list of the top 10 stocks, its potential in the AI sector remains noteworthy, especially as it could yield significant returns in the coming years.
- Investor Community Support: Joining The Motley Fool's investor community provides access to the latest investment advice and market analysis, assisting investors in making informed decisions in a rapidly changing market.
See More
Surge in AI Infrastructure Spending
- Market Spending Surge: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting it could reach between $920 billion and $1.4 trillion next year, indicating robust market demand and investment potential.
- Nvidia's Market Leadership: Nvidia has emerged as the biggest beneficiary of AI infrastructure spending, with an 85% revenue growth last year and a forward P/E of 16 times, showcasing its sustained competitive advantage in AI model training.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD is better positioned for inference and agentic AI, with its market projected to reach $120 billion in the coming years, driving significant growth for the company.
- Micron's Profitability: As one of the top three DRAM manufacturers, Micron benefits from rising DRAM prices, expected to continue achieving record revenues and profits, with a forward P/E of 9 times, highlighting its importance in AI infrastructure.
See More
Micron Technology's Optimistic Earnings Outlook Ahead of Report
- Stock Surge: Micron Technology's shares have surged 244% in 2026, crossing a $1 trillion market capitalization, making it one of only three memory companies to reach this milestone, showcasing its strong performance driven by AI demand.
- Gross Margin Focus: The gross margin is expected to reach approximately 81% in the third quarter, a significant increase from 37% a year earlier, reflecting Micron's enhanced pricing power and profitability in the memory market.
- Supply-Demand Tightness: High-bandwidth memory (HBM) is in short supply, with Micron's entire 2026 HBM supply already sold out, indicating that prices may remain firm in the future, further solidifying its market position.
- Market Risks: Despite the optimistic outlook, cyclical risks in the memory industry persist, as competitors like Samsung and SK Hynix are expanding capacity, which could impact future pricing and profit margins.
See More
Asian Tech Stocks Surge on US-Iran Peace Deal
- Positive Market Reaction: Asian tech stocks surged on Monday as the US and Iran reached a peace deal, with SoftBank's shares rising over 12%, reflecting investor optimism about market prospects.
- Japanese Tech Leads Gains: Tokyo Electron and Advantest saw increases of 9.19% and 7.69% respectively, showcasing the strong performance of Japan's tech sector in the global market and boosting investor confidence.
- Semiconductor Giants Shine: Samsung Electronics and SK Hynix gained 4.65% and 6.42%, respectively, with both companies surpassing a $1 trillion market valuation, underscoring their leadership in the global semiconductor industry.
- Significant Geopolitical Impact: As tensions ease in the Middle East, market risk appetite is rebounding, which is expected to further drive tech stock gains, particularly in the burgeoning AI investment landscape.
See More
U.S. Chip Stocks Rally on Iran Deal Announcement
- Market Reaction: Following President Trump's announcement of a peace deal with Iran, Intel and AMD stocks surged approximately 5% and 6.5% respectively, while Nvidia saw a 2% increase, indicating a positive market sentiment towards reduced geopolitical risks.
- Investor Sentiment Shift: Despite Nvidia's stubborn stock performance, sentiment on Stocktwits turned extremely bearish, reflecting retail investors' concerns about future price movements, which could influence short-term trading decisions.
- Market Expectation Adjustments: As investor focus shifts towards the upcoming Federal Reserve interest rate meeting, expectations have changed, with a growing adaptation to a prolonged high-interest-rate environment potentially impacting future investment strategies.
- Analyst Insights: Goldman Sachs raised its price target for Micron while maintaining a neutral stance, indicating that investor expectations remain high ahead of the company's earnings report on June 24, despite a 1.6% decline in its stock last week.
See More
Investment Opportunities in AI Build-Out Beyond Nvidia
- Diverse Investment Opportunities: Arista Networks, Micron, Broadcom, Eaton, and Applied Digital offer various investment avenues for investors looking to capitalize on AI demand growth beyond Nvidia, highlighting the potential need for networking, memory, and data center capacity.
- Growing Market Demand: As AI demand rises, global needs for networking, memory, custom chips, and data centers are expected to exceed many investors' expectations, creating new growth opportunities for related companies.
- Optimistic Industry Outlook: These companies are becoming increasingly vital in the AI ecosystem, particularly in providing infrastructure and support, which could drive their stock prices higher and attract more investor interest.
- Shift in Investor Focus: Investors should pay attention to the potential of these companies in the AI build-out, especially outside of Nvidia, as they may uncover more investment opportunities and sources of returns.
See More
AI Demand Fuels Growth in Networking and Storage
- Growing AI Demand: As demand for artificial intelligence surges, companies like Arista Networks, Micron, Broadcom, Eaton, and Applied Digital may experience increased needs for networking, memory, and data center capacity, driving their business growth.
- Diverse Investment Opportunities: These companies offer investors diversified opportunities beyond Nvidia, indicating that other technology providers also hold potential within the AI ecosystem.
- Market Performance Comparison: Although Arista Networks did not make it onto The Motley Fool's list of the top 10 stocks, its potential in the AI sector remains noteworthy, especially as it could yield significant returns in the coming years.
- Investor Community Support: Joining The Motley Fool's investor community provides access to the latest investment advice and market analysis, assisting investors in making informed decisions in a rapidly changing market.
See More
Surge in AI Infrastructure Spending
- Market Spending Surge: AI infrastructure spending is expected to exceed $700 billion in 2023, with Goldman Sachs projecting it could reach between $920 billion and $1.4 trillion next year, indicating robust market demand and investment potential.
- Nvidia's Market Leadership: Nvidia has emerged as the biggest beneficiary of AI infrastructure spending, with an 85% revenue growth last year and a forward P/E of 16 times, showcasing its sustained competitive advantage in AI model training.
- AMD's Growth Potential: Although trailing Nvidia in AI model training, AMD is better positioned for inference and agentic AI, with its market projected to reach $120 billion in the coming years, driving significant growth for the company.
- Micron's Profitability: As one of the top three DRAM manufacturers, Micron benefits from rising DRAM prices, expected to continue achieving record revenues and profits, with a forward P/E of 9 times, highlighting its importance in AI infrastructure.
See More
