Surge in Semiconductor Stock Options Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: CNBC
- Surge in Puts: Open interest in put contracts on the VanEck Semiconductor ETF (SMH) has surged to nearly 1.7 million, the highest since the fund's inception in 2011, indicating strong bearish sentiment in the semiconductor sector.
- Rising Implied Volatility: The implied volatility for SMH is nearing 55%, the highest in over a year, suggesting that investors are primarily buying puts to hedge against market fluctuations rather than chasing gains, which may indicate a more sustainable market trend.
- Attraction of Single Stocks: With implied volatility in single stocks like Micron reaching 105%, traders may prefer using SMH for trading to avoid the high risks and costs associated with single stock trading, making SMH puts more appealing.
- Market Strategy Adjustments: Don Kaufman, co-founder of TheoTrade, implemented a 535/525 put spread strategy, anticipating a market pullback, indicating that investors are adjusting their strategies to navigate potential market corrections amid high volatility.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MU?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 923.520
Low
235.00
Averages
336.12
High
500.00
Current: 923.520
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 Surpasses $1 Trillion Market Cap for First Time
- Market Cap Milestone: On May 26, Micron Technology surpassed a $1 trillion market cap for the first time, following an explosive 830% stock price increase over the past 12 months, becoming the third American semiconductor company to reach this milestone, which underscores its strong position in the high-bandwidth memory market.
- Significant Sales Growth: Micron generated $23.8 billion in revenue during its fiscal 2026 second quarter, marking a 196% year-over-year increase, with both cloud memory and mobile client segments contributing $7.7 billion each, reflecting robust demand for AI-related memory solutions.
- Profitability Surge: The severe memory supply shortage allowed Micron to increase its pricing power, resulting in a staggering 756% increase in earnings per share to $12.07 during the second quarter, pushing its trailing 12-month earnings to $21.18, showcasing the company's strong financial performance in the current market.
- Future Growth Outlook: Management anticipates record revenue of $33.5 billion for the third quarter of fiscal 2026, representing a 260% year-over-year increase, indicating that despite valuation concerns, Micron's long-term growth potential in the AI sector remains highly regarded.
See More
Micron Technology Price Targets Raised to $1,500 Amid Strong Demand
- Price Target Increase: Mizuho raised Micron Technology's price target from $800 to $1,150 while maintaining a 'Buy' rating, anticipating robust memory demand to persist into next year, which implies a 25% upside from the last close.
- Strategic Partnership: Anthropic named Micron as one of its 'strategic infrastructure partners' during its $65 billion fundraising announcement, which will aid Anthropic in reliably scaling its compute capacity, further solidifying Micron's position in the AI sector.
- Strong Market Performance: Micron's shares rose 1% in pre-market trading on Thursday, with a year-to-date increase of 224%, reflecting strong market confidence in its future growth, particularly amid surging demand for data centers and AI systems.
- Optimistic Earnings Outlook: Micron is expected to report a 263% year-over-year revenue increase to $33.8 billion in its fiscal third-quarter results on June 24, setting a record high, with adjusted earnings projected to rise over 900% to $19.29 per share, further boosting investor confidence.
See More
Micron Technology Price Target Raised to $1,750 by Susquehanna
- Price Target Increase: Susquehanna raised Micron Technology's price target from $600 to $1,750, reflecting strong demand trends in the DRAM and NAND markets, indicating the company's sustained market position in the memory chip sector.
- Strong DRAM Pricing: Micron continues to benefit from stronger pricing in the DRAM market, partly due to more supply being directed toward high-bandwidth memory products and server applications related to artificial intelligence workloads, showcasing the company's leadership in technological innovation.
- Growing NAND Storage Demand: With increasing demand for NAND storage used in AI inference systems, Susquehanna anticipates additional support for Micron, particularly as cloud service providers may ramp up large-scale purchases in the second half of 2026, further boosting the company's performance.
- Tight Supply Environment: Despite strong demand, Susquehanna noted that Micron is operating in a tighter supply environment, which could pressure hardware production across the broader server market, with some original equipment manufacturers potentially seeing reduced shipments later this year.
See More
Micron Shares Surge 80% Amid AI Demand Boom
- Stock Surge: Micron (MU) shares have soared nearly 80% over the past 30 days, primarily driven by surging demand for memory products due to the widespread adoption of AI technology, showcasing the company's strong performance in the rapidly growing semiconductor market.
- Valuation Debate: Analyst Ricardo Fernandez argues that despite the market's perception of the memory chip sector as highly cyclical, Micron's current price-to-earnings ratio remains low, with expectations of reaching 15x, indicating that the stock still holds appeal and may attract more investor interest.
- Growth Potential: Dr. Christopher Davis from Quad 7 Capital highlights that the industrialization of AI has led to sustained demand, suggesting that while cyclical fluctuations may occur in the future, the current demand is nearly insatiable, indicating significant growth opportunities for Micron in the coming years.
- Market Risks: Analysts caution that if companies reduce AI capital expenditures, Micron's stock price could face pressure; although current earnings levels support its share price, shifts in market sentiment could lead to substantial pullbacks during adverse market conditions.
See More
Micron Stock Rises on Dell's Earnings Surge and Price Target Increase
- Dell's Earnings Boost: Dell reported fiscal Q1 2027 results with a non-GAAP EPS of $4.86, significantly exceeding the $2.88 forecast, and an 88% year-over-year sales increase to $43.8 billion, enhancing market confidence in Micron's prospects.
- AI Orders Driving Growth: With 56% of Dell's business coming from AI orders, and AI servers making up nearly two-thirds of total AI orders, the ongoing AI market expansion is expected to directly increase demand for Micron's memory products, bolstering its sales outlook.
- Analyst Optimism: Susquehanna analyst Mehdi Hosseini predicts tight memory supply will persist through 2027, raising Micron's stock price target to $1,750 per share, reflecting a positive outlook on Micron's future performance.
- Positive Market Reaction: Micron's stock rose 4.5% today to $36.61, indicating investor confidence in the company's growth potential, particularly in the context of rapid advancements in AI technology.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
Micron Technology Surpasses $1 Trillion Market Cap for First Time
- Market Cap Milestone: On May 26, Micron Technology surpassed a $1 trillion market cap for the first time, following an explosive 830% stock price increase over the past 12 months, becoming the third American semiconductor company to reach this milestone, which underscores its strong position in the high-bandwidth memory market.
- Significant Sales Growth: Micron generated $23.8 billion in revenue during its fiscal 2026 second quarter, marking a 196% year-over-year increase, with both cloud memory and mobile client segments contributing $7.7 billion each, reflecting robust demand for AI-related memory solutions.
- Profitability Surge: The severe memory supply shortage allowed Micron to increase its pricing power, resulting in a staggering 756% increase in earnings per share to $12.07 during the second quarter, pushing its trailing 12-month earnings to $21.18, showcasing the company's strong financial performance in the current market.
- Future Growth Outlook: Management anticipates record revenue of $33.5 billion for the third quarter of fiscal 2026, representing a 260% year-over-year increase, indicating that despite valuation concerns, Micron's long-term growth potential in the AI sector remains highly regarded.
See More
Micron Technology Price Targets Raised to $1,500 Amid Strong Demand
- Price Target Increase: Mizuho raised Micron Technology's price target from $800 to $1,150 while maintaining a 'Buy' rating, anticipating robust memory demand to persist into next year, which implies a 25% upside from the last close.
- Strategic Partnership: Anthropic named Micron as one of its 'strategic infrastructure partners' during its $65 billion fundraising announcement, which will aid Anthropic in reliably scaling its compute capacity, further solidifying Micron's position in the AI sector.
- Strong Market Performance: Micron's shares rose 1% in pre-market trading on Thursday, with a year-to-date increase of 224%, reflecting strong market confidence in its future growth, particularly amid surging demand for data centers and AI systems.
- Optimistic Earnings Outlook: Micron is expected to report a 263% year-over-year revenue increase to $33.8 billion in its fiscal third-quarter results on June 24, setting a record high, with adjusted earnings projected to rise over 900% to $19.29 per share, further boosting investor confidence.
See More
Micron Technology Price Target Raised to $1,750 by Susquehanna
- Price Target Increase: Susquehanna raised Micron Technology's price target from $600 to $1,750, reflecting strong demand trends in the DRAM and NAND markets, indicating the company's sustained market position in the memory chip sector.
- Strong DRAM Pricing: Micron continues to benefit from stronger pricing in the DRAM market, partly due to more supply being directed toward high-bandwidth memory products and server applications related to artificial intelligence workloads, showcasing the company's leadership in technological innovation.
- Growing NAND Storage Demand: With increasing demand for NAND storage used in AI inference systems, Susquehanna anticipates additional support for Micron, particularly as cloud service providers may ramp up large-scale purchases in the second half of 2026, further boosting the company's performance.
- Tight Supply Environment: Despite strong demand, Susquehanna noted that Micron is operating in a tighter supply environment, which could pressure hardware production across the broader server market, with some original equipment manufacturers potentially seeing reduced shipments later this year.
See More
Micron Shares Surge 80% Amid AI Demand Boom
- Stock Surge: Micron (MU) shares have soared nearly 80% over the past 30 days, primarily driven by surging demand for memory products due to the widespread adoption of AI technology, showcasing the company's strong performance in the rapidly growing semiconductor market.
- Valuation Debate: Analyst Ricardo Fernandez argues that despite the market's perception of the memory chip sector as highly cyclical, Micron's current price-to-earnings ratio remains low, with expectations of reaching 15x, indicating that the stock still holds appeal and may attract more investor interest.
- Growth Potential: Dr. Christopher Davis from Quad 7 Capital highlights that the industrialization of AI has led to sustained demand, suggesting that while cyclical fluctuations may occur in the future, the current demand is nearly insatiable, indicating significant growth opportunities for Micron in the coming years.
- Market Risks: Analysts caution that if companies reduce AI capital expenditures, Micron's stock price could face pressure; although current earnings levels support its share price, shifts in market sentiment could lead to substantial pullbacks during adverse market conditions.
See More
Micron Stock Rises on Dell's Earnings Surge and Price Target Increase
- Dell's Earnings Boost: Dell reported fiscal Q1 2027 results with a non-GAAP EPS of $4.86, significantly exceeding the $2.88 forecast, and an 88% year-over-year sales increase to $43.8 billion, enhancing market confidence in Micron's prospects.
- AI Orders Driving Growth: With 56% of Dell's business coming from AI orders, and AI servers making up nearly two-thirds of total AI orders, the ongoing AI market expansion is expected to directly increase demand for Micron's memory products, bolstering its sales outlook.
- Analyst Optimism: Susquehanna analyst Mehdi Hosseini predicts tight memory supply will persist through 2027, raising Micron's stock price target to $1,750 per share, reflecting a positive outlook on Micron's future performance.
- Positive Market Reaction: Micron's stock rose 4.5% today to $36.61, indicating investor confidence in the company's growth potential, particularly in the context of rapid advancements in AI technology.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
