Micron Shares Increase: Samsung's 'First' HBM4 Claim Poses No Threat.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12h ago
0mins
Should l Buy MU?
Source: Barron's
Samsung's Achievement: Samsung Electronics has announced that it is the first company to ship a new type of memory chip essential for artificial intelligence processors.
Competition with Micron: Micron Technology is closely following Samsung in the development and shipment of similar memory technology.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 410.340
Low
235.00
Averages
336.12
High
500.00
Current: 410.340
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 Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
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: A Key Driver in the AI Market
- Significant Growth: Micron Technology achieved a remarkable 57% year-over-year revenue growth in Q1 FY2026, nearly tripling its profits, which highlights its strong performance in the AI semiconductor market and attracts investor attention.
- Optimistic Future Outlook: The company anticipates “substantial records” in Q2 FY2026 across revenue, margins, EPS, and free cash flow, indicating that its business performance will continue to strengthen, suggesting robust sequential growth.
- Strong Market Position: Micron holds a crucial position in the AI storage solutions sector, with demand expected to rise as chipmakers grow rapidly, and with only two other large competitors, Micron enjoys a comfortable market position.
- Huge Investment Potential: Despite Micron's stock quadrupling in the past year, its forward P/E ratio of 12.5 remains lower than other AI stocks, indicating that there is still room for price appreciation, potentially creating substantial wealth for investors in the future.
See More
Nasdaq-100 Index Shows Strong Performance
- Tech Dominance: The Nasdaq-100 index features over 60% technology stocks, delivering a 20.2% return last year, significantly outperforming the S&P 500's 16.4%, highlighting the robust growth potential of the tech sector.
- AI-Driven Investment Opportunities: The five leading AI companies, including Nvidia and Alphabet, have achieved an average return of 880% since 2023, indicating the strategic value of AI-related investments within the Nasdaq-100 index.
- Long-Term Investment Advantage: The Invesco QQQ ETF has delivered a compound annual return of 10.4% since its inception in 1999, with an even higher rate of 20.5% over the past decade, demonstrating the effectiveness of long-term holdings in mitigating market volatility risks.
- Market Timing Insights: Despite market fluctuations, historical data suggests that investing in the Nasdaq-100 index and its ETF during downturns often leads to long-term gains, encouraging investors to hold or buy even as the index approaches historical highs.
See More
US Stock Market Volatility as Tech Stocks Weigh Down Indices
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
See More
Crocs Shares Surge 21% on Strong Earnings Guidance
- Crocs Strong Guidance: Crocs shares surged 21% after the company projected adjusted earnings between $2.67 and $2.77 per share for the current quarter, exceeding the market expectation of $2.52, indicating resilience and growth potential in the current economic climate.
- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
Micron Stock Rises Due to HBM Demand
- Market Tightness: Micron's stock rose 3.7% on Thursday, primarily driven by tight supply and demand for high-bandwidth memory (HBM), indicating a direct link between its profitability and HBM supply.
- Competitor Actions: Rivals like Samsung and SK Hynix are ramping up HBM production, with Samsung recently shipping its latest HBM4 chips, highlighting a surge in demand for high-priced memory.
- Profit Outlook: While rising HBM prices will boost Micron's short-term profits, the rapid production increases by competitors could lead to price declines in the future, impacting the company's long-term profitability.
- Cyclical Risks: The cyclical nature of the semiconductor industry suggests that Micron's profit growth may not be sustainable, prompting investors to remain cautious about potential market shifts.
See More
Mixed U.S. Stock Market Performance with Tech Stocks Under Pressure
- Strong Chip Demand: Sandisk's stock surged over 8% following Kioxia's forecast of robust demand for NAND memory chips, indicating strong global demand for AI infrastructure, which boosts market confidence in tech stocks.
- Tech Stock Pressure: Cisco Systems' stock fell more than 9% as it warned that rising memory chip prices would erode profitability, limiting overall gains in tech stocks and reflecting cost pressures faced by the industry.
- Labor Market Data: U.S. initial jobless claims fell by 5,000 to 227,000, indicating a slightly weaker labor market than the expected 223,000, which may affect market expectations for future economic growth.
- Corporate Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 78% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing support for the market and demonstrating corporate resilience.
See More
Micron Technology: A Key Driver in the AI Market
- Significant Growth: Micron Technology achieved a remarkable 57% year-over-year revenue growth in Q1 FY2026, nearly tripling its profits, which highlights its strong performance in the AI semiconductor market and attracts investor attention.
- Optimistic Future Outlook: The company anticipates “substantial records” in Q2 FY2026 across revenue, margins, EPS, and free cash flow, indicating that its business performance will continue to strengthen, suggesting robust sequential growth.
- Strong Market Position: Micron holds a crucial position in the AI storage solutions sector, with demand expected to rise as chipmakers grow rapidly, and with only two other large competitors, Micron enjoys a comfortable market position.
- Huge Investment Potential: Despite Micron's stock quadrupling in the past year, its forward P/E ratio of 12.5 remains lower than other AI stocks, indicating that there is still room for price appreciation, potentially creating substantial wealth for investors in the future.
See More
Nasdaq-100 Index Shows Strong Performance
- Tech Dominance: The Nasdaq-100 index features over 60% technology stocks, delivering a 20.2% return last year, significantly outperforming the S&P 500's 16.4%, highlighting the robust growth potential of the tech sector.
- AI-Driven Investment Opportunities: The five leading AI companies, including Nvidia and Alphabet, have achieved an average return of 880% since 2023, indicating the strategic value of AI-related investments within the Nasdaq-100 index.
- Long-Term Investment Advantage: The Invesco QQQ ETF has delivered a compound annual return of 10.4% since its inception in 1999, with an even higher rate of 20.5% over the past decade, demonstrating the effectiveness of long-term holdings in mitigating market volatility risks.
- Market Timing Insights: Despite market fluctuations, historical data suggests that investing in the Nasdaq-100 index and its ETF during downturns often leads to long-term gains, encouraging investors to hold or buy even as the index approaches historical highs.
See More
US Stock Market Volatility as Tech Stocks Weigh Down Indices
- Tech Stock Pressure: The S&P 500 index fell by 0.52% and the Nasdaq 100 index dropped by 1.08% due to weakness in the Magnificent Seven tech stocks, indicating investor concerns that could dampen market confidence.
- Cisco Profit Warning: Cisco Systems forecasted that rising memory chip prices would erode profitability, leading to a more than 10% drop in its stock price, which may prompt investors to revise down their future performance expectations, negatively impacting overall market sentiment.
- Employment Data Impact: Initial US jobless claims fell by 5,000 to 227,000, reflecting a slightly weaker labor market, which could influence the Federal Reserve's monetary policy decisions and lower market expectations for future rate cuts.
- Chip Demand Recovery: Sandisk's stock rose over 7% following Kioxia's forecast of strong demand for NAND memory chips, indicating growth potential in the AI infrastructure sector, which may create new investment opportunities for related companies.
See More
Crocs Shares Surge 21% on Strong Earnings Guidance
- Crocs Strong Guidance: Crocs shares surged 21% after the company projected adjusted earnings between $2.67 and $2.77 per share for the current quarter, exceeding the market expectation of $2.52, indicating resilience and growth potential in the current economic climate.
- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
Micron Stock Rises Due to HBM Demand
- Market Tightness: Micron's stock rose 3.7% on Thursday, primarily driven by tight supply and demand for high-bandwidth memory (HBM), indicating a direct link between its profitability and HBM supply.
- Competitor Actions: Rivals like Samsung and SK Hynix are ramping up HBM production, with Samsung recently shipping its latest HBM4 chips, highlighting a surge in demand for high-priced memory.
- Profit Outlook: While rising HBM prices will boost Micron's short-term profits, the rapid production increases by competitors could lead to price declines in the future, impacting the company's long-term profitability.
- Cyclical Risks: The cyclical nature of the semiconductor industry suggests that Micron's profit growth may not be sustainable, prompting investors to remain cautious about potential market shifts.
See More
Mixed U.S. Stock Market Performance with Tech Stocks Under Pressure
- Strong Chip Demand: Sandisk's stock surged over 8% following Kioxia's forecast of robust demand for NAND memory chips, indicating strong global demand for AI infrastructure, which boosts market confidence in tech stocks.
- Tech Stock Pressure: Cisco Systems' stock fell more than 9% as it warned that rising memory chip prices would erode profitability, limiting overall gains in tech stocks and reflecting cost pressures faced by the industry.
- Labor Market Data: U.S. initial jobless claims fell by 5,000 to 227,000, indicating a slightly weaker labor market than the expected 223,000, which may affect market expectations for future economic growth.
- Corporate Earnings Optimism: Over two-thirds of S&P 500 companies have reported earnings, with 78% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing support for the market and demonstrating corporate resilience.
See More
