Micron Technology: A Potential Giant in AI Hardware
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Surging Market Demand: With AI's skyrocketing need for memory chips, data centers are projected to consume 70% of all memory chips in 2026, leading to a critical shortage and a 10%-15% increase in smartphone memory costs.
- Strong Financial Performance: Micron Technology reported $37.4 billion in revenue for fiscal 2025, a 49% year-over-year increase, with a gross margin of 39%, operating margin of 26%, and net income margin of 22.8%, showcasing robust profitability.
- Stock Price Surge: Micron's stock has soared over 300% in the past year, yet it trades at a forward P/E ratio of only 10.57, significantly lower than competitors Samsung at 12.7 and Nvidia at 24.34, indicating attractive valuation.
- Strategic Expansion Investment: By halting consumer RAM production and breaking ground on a massive factory near Syracuse, New York, Micron demonstrates confidence in future memory demand and strategic positioning in the market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 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.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
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