Micron Technology Benefits from Helium Shortage Amid Geopolitical Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy MU?
Source: Fool
- Helium Supply Crisis: The Iranian missile strike on Qatar's natural gas refinery has disrupted 17% of global helium supply, significantly impacting South Korean competitors Samsung and SK Hynix, potentially allowing Micron Technology to gain a competitive edge in the market.
- Diversified Supply Chain: Micron has secured a $250 million deal with Air Liquide to build a helium production facility in Idaho, ensuring that its U.S. factories remain insulated from the geopolitical tensions affecting Qatari helium supplies, thereby enhancing its stability in the global semiconductor market.
- Strong Financial Performance: Micron reported a 196% year-over-year revenue increase in Q2 2026, with a net profit margin of 41.5%, demonstrating its robust profitability and adaptability in the face of helium shortages and intensifying competition.
- Optimistic Industry Outlook: With AI demand driving a global memory chip shortage, Micron is the least dependent on Qatari helium among the three major memory producers, suggesting that its margins will be the least affected, further solidifying its leadership position in the market.
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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: 640.200
Low
235.00
Averages
336.12
High
500.00
Current: 640.200
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.
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