Samsung Nears Nvidia HBM4 Certification, Micron Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: seekingalpha
- Micron Stock Decline: Micron Technology (MU) shares fell about 2% on Monday, primarily due to Samsung Electronics (SSNLF) nearing Nvidia (NVDA) certification for its HBM4 AI memory chips, indicating heightened market competition concerns.
- Surging Market Demand: Driven by increased demand from data centers and AI infrastructure, memory and storage manufacturers have seen stock prices surge over the past year, reflecting strong growth potential in the industry, despite Micron facing greater market pressures.
- Price Increase Expectations: Samsung and SK hynix (HXSC.F) are reportedly looking to raise server memory prices by up to 70% in Q1, indicating that rising AI demand is impacting global supply chains and could further boost industry profitability.
- Intensifying Competition: As major suppliers in the memory market, Samsung and SK hynix are intensifying competition with Micron, particularly in the HBM chip sector, which may affect Micron's market share and future profitability.
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: 399.650
Low
235.00
Averages
336.12
High
500.00
Current: 399.650
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.
