Nvidia Takes a Backseat as Micron's Surge Reshapes the AI ETF Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 24 2025
0mins
Source: Benzinga
Micron's Strong Performance: Micron Technology Inc reported fiscal Q4 profits exceeding expectations, with $11.32 billion in revenue and earnings per share of $3.03, positioning itself as a key player in the semiconductor market amid rising AI demand.
Investment Opportunities: Investors can leverage Micron's growth through the Direxion Daily MU Bull 2X Shares ETF or diversify their portfolios with broader ETFs like VanEck Semiconductor ETF and iShares Semiconductor ETF, which include both Micron and Nvidia.
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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: 404.350
Low
235.00
Averages
336.12
High
500.00
Current: 404.350
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 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 Exceeds Q2 Earnings Expectations
- Strong Performance: Micron Technology reported Q2 revenue of $23.9 billion, nearly tripling year-over-year and surpassing analyst expectations of $20.1 billion, indicating robust performance in the memory chip market.
- Enhanced Profitability: The earnings per share reached $12.20, significantly exceeding the $9.31 forecast, reflecting the company's strong profitability in a high-demand environment despite pressures from future capacity expansions.
- Increased Capital Expenditure: The expected capital expenditures for this fiscal year are projected to exceed $25 billion, an 80% increase from last year, aimed at supporting investments in high-bandwidth memory and DRAM, although this may impact profit margins.
- Market Reaction: Despite the strong earnings, Micron's stock price fell post-report, primarily due to investor pessimism surrounding AI stocks and profit-taking after a 550% increase since last April.
See More
Following Strong Earnings, What is Micron's Potential for Further Growth?
Tech Sector Performance: The tech sector has faced challenges in 2023, with a year-to-date loss of over 6%, ranking it among the worst-performing sectors in the S&P 500, although some stocks like Micron Technologies have seen significant gains.
Micron's Growth: Micron Technologies has experienced a remarkable stock increase of 553% since its 52-week low in April 2025, driven by strong demand for memory and storage solutions, particularly in AI applications.
Future Prospects: Despite the overall tech sector struggles, Micron is planning to expand its operations with a new chip factory in Taiwan, aiming to meet the growing demand for DRAM products and support its revenue growth.
Analyst Sentiment: Analysts maintain a positive outlook on Micron, with a "Buy" rating and expectations of continued earnings growth, suggesting potential upside for investors as the company adapts to market demands.
See More
Arm Launches Own Chip, Market Reacts Positively
- Chip Launch: Arm officially unveiled its own-designed Arm AGI CPU at the Arm Everywhere event, targeting AI data center needs and projecting annual revenue of $15 billion within five years, significantly enhancing its market position.
- Market Share Advantage: With over 99% market share in the smartphone sector and rapid growth in data centers, Arm's technological edge positions it favorably in a competitive landscape, especially as energy efficiency becomes increasingly critical.
- Profit Potential: The new chip is expected to generate over $5 billion in annual profit, and with a gross margin of 94.84%, it indicates Arm's potential for higher profitability during the AI boom, further solidifying its market standing.
- Stock Reaction: Following the announcement, Arm's stock surged 8% in after-hours trading, reflecting investor optimism about the new chip and significantly boosting market confidence in its future growth potential.
See More
Arm Launches First Self-Designed Chip with Meta as Flagship Customer
- Chip Launch: Arm is launching its first self-designed AGI CPU, expected to generate $15 billion in annual sales within five years, marking a significant shift from its traditional licensing model to proprietary products, enhancing its competitive edge.
- Partnerships: Meta Platforms is the flagship customer co-developing the new chip, highlighting Arm's strategic importance in the AI data center space, while also attracting a diverse customer base including Cloudflare, SAP, and OpenAI, further expanding its market share.
- Market Potential: Arm anticipates total revenue to rise to $25 billion in five years, with earnings per share projected to reach $9, indicating strong growth potential that could see its stock price increase sixfold if current sales multiples are maintained.
- Technological Advantage: The chip delivers double the performance of comparable x86 platforms for AI data centers, addressing the growing demand for computing power, thereby solidifying Arm's leadership in both the smartphone and data center markets.
See More
Micron's Fiscal Q2 Revenue Soars 196% Driven by AI Demand
- Significant Revenue Growth: Micron's fiscal Q2 revenue reached $23.86 billion, soaring 196% year-over-year and up 75% sequentially, highlighting robust demand for AI hardware and solidifying its leadership in the semiconductor market.
- Strong Margin Guidance: Management anticipates an impressive gross margin of 81% for the upcoming quarter, a substantial increase from 38% in Q3 FY2025 and 75% in Q2 FY2026, indicating that the current supply-demand imbalance will continue to drive profitability.
- Earnings Per Share Surge: Micron reported adjusted earnings per share of $12.20, up 682% year-over-year, reflecting significant pricing power gained from the surging demand for AI infrastructure, with Q3 EPS expected to reach $18.90.
- Attractive Market Valuation: Despite a more than 300% rise in stock price over the past year, Micron's forward price-to-earnings ratio stands at just 8, suggesting that the market remains cautious about its future profitability, necessitating careful risk assessment by investors.
See More
SK Hynix Plans U.S. Listing Amid AI Demand Surge
- Listing Announcement: SK Hynix filed a confidential application with the U.S. SEC on Wednesday for a potential American Depositary Receipt (ADR) listing by 2026, aiming to raise fresh capital to expand production in response to surging memory demand driven by AI.
- Funding Goals Set: The company is looking to raise between 10 trillion and 15 trillion won (approximately $6.7 billion to $10 billion) through this listing, which will support its strategic expansion in the global memory market, particularly in high-bandwidth memory (HBM) chips.
- Capacity Expansion: The completion of the M15X fab ahead of schedule, along with the smooth progress of the $15 billion Yongin Semiconductor Cluster and advanced packaging facility in Indiana, underscores the company’s potential for unprecedented growth in the memory market.
- Shareholder Meeting Insights: During the annual shareholders meeting, CEO Kwak Noh-Jung stated that SK Hynix plans to secure over 100 trillion won in net cash for long-term strategic investments, further solidifying its critical role in the performance of AI systems.
See More
Micron Technology Exceeds Q2 Earnings Expectations
- Strong Performance: Micron Technology reported Q2 revenue of $23.9 billion, nearly tripling year-over-year and surpassing analyst expectations of $20.1 billion, indicating robust performance in the memory chip market.
- Enhanced Profitability: The earnings per share reached $12.20, significantly exceeding the $9.31 forecast, reflecting the company's strong profitability in a high-demand environment despite pressures from future capacity expansions.
- Increased Capital Expenditure: The expected capital expenditures for this fiscal year are projected to exceed $25 billion, an 80% increase from last year, aimed at supporting investments in high-bandwidth memory and DRAM, although this may impact profit margins.
- Market Reaction: Despite the strong earnings, Micron's stock price fell post-report, primarily due to investor pessimism surrounding AI stocks and profit-taking after a 550% increase since last April.
See More
Following Strong Earnings, What is Micron's Potential for Further Growth?
Tech Sector Performance: The tech sector has faced challenges in 2023, with a year-to-date loss of over 6%, ranking it among the worst-performing sectors in the S&P 500, although some stocks like Micron Technologies have seen significant gains.
Micron's Growth: Micron Technologies has experienced a remarkable stock increase of 553% since its 52-week low in April 2025, driven by strong demand for memory and storage solutions, particularly in AI applications.
Future Prospects: Despite the overall tech sector struggles, Micron is planning to expand its operations with a new chip factory in Taiwan, aiming to meet the growing demand for DRAM products and support its revenue growth.
Analyst Sentiment: Analysts maintain a positive outlook on Micron, with a "Buy" rating and expectations of continued earnings growth, suggesting potential upside for investors as the company adapts to market demands.
See More
Arm Launches Own Chip, Market Reacts Positively
- Chip Launch: Arm officially unveiled its own-designed Arm AGI CPU at the Arm Everywhere event, targeting AI data center needs and projecting annual revenue of $15 billion within five years, significantly enhancing its market position.
- Market Share Advantage: With over 99% market share in the smartphone sector and rapid growth in data centers, Arm's technological edge positions it favorably in a competitive landscape, especially as energy efficiency becomes increasingly critical.
- Profit Potential: The new chip is expected to generate over $5 billion in annual profit, and with a gross margin of 94.84%, it indicates Arm's potential for higher profitability during the AI boom, further solidifying its market standing.
- Stock Reaction: Following the announcement, Arm's stock surged 8% in after-hours trading, reflecting investor optimism about the new chip and significantly boosting market confidence in its future growth potential.
See More
Arm Launches First Self-Designed Chip with Meta as Flagship Customer
- Chip Launch: Arm is launching its first self-designed AGI CPU, expected to generate $15 billion in annual sales within five years, marking a significant shift from its traditional licensing model to proprietary products, enhancing its competitive edge.
- Partnerships: Meta Platforms is the flagship customer co-developing the new chip, highlighting Arm's strategic importance in the AI data center space, while also attracting a diverse customer base including Cloudflare, SAP, and OpenAI, further expanding its market share.
- Market Potential: Arm anticipates total revenue to rise to $25 billion in five years, with earnings per share projected to reach $9, indicating strong growth potential that could see its stock price increase sixfold if current sales multiples are maintained.
- Technological Advantage: The chip delivers double the performance of comparable x86 platforms for AI data centers, addressing the growing demand for computing power, thereby solidifying Arm's leadership in both the smartphone and data center markets.
See More
Micron's Fiscal Q2 Revenue Soars 196% Driven by AI Demand
- Significant Revenue Growth: Micron's fiscal Q2 revenue reached $23.86 billion, soaring 196% year-over-year and up 75% sequentially, highlighting robust demand for AI hardware and solidifying its leadership in the semiconductor market.
- Strong Margin Guidance: Management anticipates an impressive gross margin of 81% for the upcoming quarter, a substantial increase from 38% in Q3 FY2025 and 75% in Q2 FY2026, indicating that the current supply-demand imbalance will continue to drive profitability.
- Earnings Per Share Surge: Micron reported adjusted earnings per share of $12.20, up 682% year-over-year, reflecting significant pricing power gained from the surging demand for AI infrastructure, with Q3 EPS expected to reach $18.90.
- Attractive Market Valuation: Despite a more than 300% rise in stock price over the past year, Micron's forward price-to-earnings ratio stands at just 8, suggesting that the market remains cautious about its future profitability, necessitating careful risk assessment by investors.
See More
SK Hynix Plans U.S. Listing Amid AI Demand Surge
- Listing Announcement: SK Hynix filed a confidential application with the U.S. SEC on Wednesday for a potential American Depositary Receipt (ADR) listing by 2026, aiming to raise fresh capital to expand production in response to surging memory demand driven by AI.
- Funding Goals Set: The company is looking to raise between 10 trillion and 15 trillion won (approximately $6.7 billion to $10 billion) through this listing, which will support its strategic expansion in the global memory market, particularly in high-bandwidth memory (HBM) chips.
- Capacity Expansion: The completion of the M15X fab ahead of schedule, along with the smooth progress of the $15 billion Yongin Semiconductor Cluster and advanced packaging facility in Indiana, underscores the company’s potential for unprecedented growth in the memory market.
- Shareholder Meeting Insights: During the annual shareholders meeting, CEO Kwak Noh-Jung stated that SK Hynix plans to secure over 100 trillion won in net cash for long-term strategic investments, further solidifying its critical role in the performance of AI systems.
See More
