Micron Technology Outpaces Alphabet in AI Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MU?
Source: Fool
- AI Market Growth: Alphabet's Gemini chatbot has reached 750 million monthly active users, an 88% increase from nine months ago, indicating a significant boost in the company's competitiveness in the AI sector, which is expected to drive future revenue growth.
- Revenue Surge: Alphabet reported a nearly 400% year-over-year increase in revenue from products based on generative AI models in Q4, showcasing its strong performance in the AI product market and further solidifying its leadership in cloud services.
- Micron's Market Advantage: Micron Technology has seen skyrocketing demand for its memory chips, with its Chief Business Officer stating that memory for 2026 is already
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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: 417.350
Low
235.00
Averages
336.12
High
500.00
Current: 417.350
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 Plans $200 Billion Investment in Memory Chip Expansion
- Massive Investment Plans: Micron is set to invest at least $200 billion in memory chip production in the U.S. by 2030, a move that not only reflects the company's confidence in future market demand but could also enhance its market share and competitiveness in the short term.
- Surging Market Demand: Driven by the rapid growth of the AI industry, prices for memory and NAND storage surged over 90% in Q1, with a forecasted additional 20% increase in Q2, prompting Micron to accelerate its DRAM fab expansion plans to meet the rising demand.
- New Factory Construction: Micron plans to build two new fabs in Idaho with a combined investment of $50 billion, alongside a $100 billion facility near Syracuse, New York, significantly boosting its production capacity and strengthening its position in the global market.
- Future Earnings Expectations: Analysts project Micron's earnings per share to reach $33.92 for fiscal 2023 and $44.55 for fiscal 2027, and given the current market dynamics and price increases, Micron is likely to exceed these expectations, further enhancing its market capitalization.
See More
Micron Technology Outpaces Alphabet in AI Boom
- AI Market Growth: Alphabet's Gemini chatbot has reached 750 million monthly active users, an 88% increase from nine months ago, indicating a significant boost in the company's competitiveness in the AI sector, which is expected to drive future revenue growth.
- Revenue Surge: Alphabet reported a nearly 400% year-over-year increase in revenue from products based on generative AI models in Q4, showcasing its strong performance in the AI product market and further solidifying its leadership in cloud services.
- Micron's Market Advantage: Micron Technology has seen skyrocketing demand for its memory chips, with its Chief Business Officer stating that memory for 2026 is already
See More
Micron Technology Invests $200 Billion to Expand Production
- Surging Memory Demand: Micron's Chief Business Officer, Sumit Sadana, stated that the company is already sold out of memory chips for 2026, indicating robust demand driven by AI data centers, which is expected to propel ongoing performance growth.
- Massive Investment Plan: To meet the surging market demand, Micron plans to invest $200 billion in new manufacturing facilities over the next several years, which is anticipated to significantly enhance its production capacity and solidify its market position.
- Strong Financial Performance: In the first quarter of fiscal 2026, Micron reported sales of $13.6 billion, a 56% year-over-year increase, while non-GAAP earnings surged 167% to $4.78 per share, showcasing the company's strong performance in the AI sector.
- Optimistic Market Outlook: Analysts project that Micron's sales will exceed $97.6 billion by 2027, and with major tech companies ramping up their memory needs, Micron is well-positioned to continue leading the competition and potentially outperform Alphabet's stock performance this year.
See More
Cantor Fitzgerald Invests $126 Million in AI Infrastructure
- Significant Investment: Cantor Fitzgerald's $126 million investment in Iren Limited (IREN) underscores its strong confidence in AI infrastructure, further enhancing IREN's credibility in the market.
- Market Value Shift: Cantor's portfolio market value has dropped to $6.59 billion from $10.3 billion, indicating a cautious approach to risk investments while reflecting overall market volatility.
- AI Infrastructure Growth: IREN generated $501 million in sales and $86.9 million in net income in FY25, showcasing rapid growth in the AI cloud services sector, particularly with Q2 AI cloud service sales reaching $17.3 million, a 136% increase from the previous quarter.
- Liquidity Advantage: IREN ended the year with $3.26 billion in cash and cash equivalents, demonstrating strong liquidity in the AI arms race, enabling future expansion and technology investments.
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Wall Street Focus This Week: Nvidia Earnings Report
- Nvidia Earnings Expectations: Nvidia is set to report its fiscal 2026 Q4 earnings on Wednesday, with expected revenues of $65.87 billion, reflecting a 67.5% year-over-year growth, and earnings per share of $1.53, up 72%, providing crucial insights into the state of AI development.
- Salesforce Performance Focus: Salesforce will release its quarterly results on Wednesday, with consensus EPS of $3.04 and revenue of $11.16 billion, as investors closely watch management's insights on AI and the adoption of its Agentforce offering to assess long-term competitiveness.
- Retailers' Earnings Impact: Home Depot and TJX Companies are reporting this week, with Home Depot expected to post EPS of $2.54 and revenue of $38.12 billion, discussing the impact of interest rates on consumer behavior, while TJX anticipates 3.83% same-store sales growth, focusing on changes in shopping habits.
- Qnity's First Earnings Report: Qnity will deliver its first earnings report as a standalone company on Thursday, with expectations of $0.58 EPS and $1.16 billion in revenue, as analysts seek insights into its market positioning amid booming AI semiconductor demand and high-bandwidth memory pricing.
See More
Micron Technology Plans $200 Billion Expansion Amid Memory Shortage
- Outstanding Market Performance: Micron Technology's stock has surged nearly 300% over the past year, reflecting strong market confidence in its prospects amid a generational memory and storage shortage, underscoring the company's leadership in the industry.
- Massive Investment Plans: Micron plans to invest over $200 billion in new memory fabs in the U.S., including two new fabs in Idaho costing a combined $50 billion, which will significantly enhance its production capacity and strengthen its competitive position in the market.
- Surging Demand: According to Counterpoint Research, prices for memory and NAND storage surged over 90% in Q1 alone, with a forecasted additional 20% increase in Q2, prompting Micron to accelerate its expansion plans to meet the growing market demand.
- Future Earnings Expectations: Analysts expect Micron to achieve earnings of $33.92 per share this fiscal year and $44.55 per share by fiscal 2027, suggesting that the earnings over the next two years could exceed 25% of Micron's current market cap, indicating strong profit potential.
See More
Micron Plans $200 Billion Investment in Memory Chip Expansion
- Massive Investment Plans: Micron is set to invest at least $200 billion in memory chip production in the U.S. by 2030, a move that not only reflects the company's confidence in future market demand but could also enhance its market share and competitiveness in the short term.
- Surging Market Demand: Driven by the rapid growth of the AI industry, prices for memory and NAND storage surged over 90% in Q1, with a forecasted additional 20% increase in Q2, prompting Micron to accelerate its DRAM fab expansion plans to meet the rising demand.
- New Factory Construction: Micron plans to build two new fabs in Idaho with a combined investment of $50 billion, alongside a $100 billion facility near Syracuse, New York, significantly boosting its production capacity and strengthening its position in the global market.
- Future Earnings Expectations: Analysts project Micron's earnings per share to reach $33.92 for fiscal 2023 and $44.55 for fiscal 2027, and given the current market dynamics and price increases, Micron is likely to exceed these expectations, further enhancing its market capitalization.
See More
Micron Technology Outpaces Alphabet in AI Boom
- AI Market Growth: Alphabet's Gemini chatbot has reached 750 million monthly active users, an 88% increase from nine months ago, indicating a significant boost in the company's competitiveness in the AI sector, which is expected to drive future revenue growth.
- Revenue Surge: Alphabet reported a nearly 400% year-over-year increase in revenue from products based on generative AI models in Q4, showcasing its strong performance in the AI product market and further solidifying its leadership in cloud services.
- Micron's Market Advantage: Micron Technology has seen skyrocketing demand for its memory chips, with its Chief Business Officer stating that memory for 2026 is already
See More
Micron Technology Invests $200 Billion to Expand Production
- Surging Memory Demand: Micron's Chief Business Officer, Sumit Sadana, stated that the company is already sold out of memory chips for 2026, indicating robust demand driven by AI data centers, which is expected to propel ongoing performance growth.
- Massive Investment Plan: To meet the surging market demand, Micron plans to invest $200 billion in new manufacturing facilities over the next several years, which is anticipated to significantly enhance its production capacity and solidify its market position.
- Strong Financial Performance: In the first quarter of fiscal 2026, Micron reported sales of $13.6 billion, a 56% year-over-year increase, while non-GAAP earnings surged 167% to $4.78 per share, showcasing the company's strong performance in the AI sector.
- Optimistic Market Outlook: Analysts project that Micron's sales will exceed $97.6 billion by 2027, and with major tech companies ramping up their memory needs, Micron is well-positioned to continue leading the competition and potentially outperform Alphabet's stock performance this year.
See More
Cantor Fitzgerald Invests $126 Million in AI Infrastructure
- Significant Investment: Cantor Fitzgerald's $126 million investment in Iren Limited (IREN) underscores its strong confidence in AI infrastructure, further enhancing IREN's credibility in the market.
- Market Value Shift: Cantor's portfolio market value has dropped to $6.59 billion from $10.3 billion, indicating a cautious approach to risk investments while reflecting overall market volatility.
- AI Infrastructure Growth: IREN generated $501 million in sales and $86.9 million in net income in FY25, showcasing rapid growth in the AI cloud services sector, particularly with Q2 AI cloud service sales reaching $17.3 million, a 136% increase from the previous quarter.
- Liquidity Advantage: IREN ended the year with $3.26 billion in cash and cash equivalents, demonstrating strong liquidity in the AI arms race, enabling future expansion and technology investments.
See More
Wall Street Focus This Week: Nvidia Earnings Report
- Nvidia Earnings Expectations: Nvidia is set to report its fiscal 2026 Q4 earnings on Wednesday, with expected revenues of $65.87 billion, reflecting a 67.5% year-over-year growth, and earnings per share of $1.53, up 72%, providing crucial insights into the state of AI development.
- Salesforce Performance Focus: Salesforce will release its quarterly results on Wednesday, with consensus EPS of $3.04 and revenue of $11.16 billion, as investors closely watch management's insights on AI and the adoption of its Agentforce offering to assess long-term competitiveness.
- Retailers' Earnings Impact: Home Depot and TJX Companies are reporting this week, with Home Depot expected to post EPS of $2.54 and revenue of $38.12 billion, discussing the impact of interest rates on consumer behavior, while TJX anticipates 3.83% same-store sales growth, focusing on changes in shopping habits.
- Qnity's First Earnings Report: Qnity will deliver its first earnings report as a standalone company on Thursday, with expectations of $0.58 EPS and $1.16 billion in revenue, as analysts seek insights into its market positioning amid booming AI semiconductor demand and high-bandwidth memory pricing.
See More
Micron Technology Plans $200 Billion Expansion Amid Memory Shortage
- Outstanding Market Performance: Micron Technology's stock has surged nearly 300% over the past year, reflecting strong market confidence in its prospects amid a generational memory and storage shortage, underscoring the company's leadership in the industry.
- Massive Investment Plans: Micron plans to invest over $200 billion in new memory fabs in the U.S., including two new fabs in Idaho costing a combined $50 billion, which will significantly enhance its production capacity and strengthen its competitive position in the market.
- Surging Demand: According to Counterpoint Research, prices for memory and NAND storage surged over 90% in Q1 alone, with a forecasted additional 20% increase in Q2, prompting Micron to accelerate its expansion plans to meet the growing market demand.
- Future Earnings Expectations: Analysts expect Micron to achieve earnings of $33.92 per share this fiscal year and $44.55 per share by fiscal 2027, suggesting that the earnings over the next two years could exceed 25% of Micron's current market cap, indicating strong profit potential.
See More
