US Stocks Slightly Fluctuate as Chip Stocks Benefit from AI Spending Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Chip Stocks Rally: Chip manufacturers and data storage companies see stock prices rise due to optimism around AI spending, with Micron Technology (MU) leading gains in the S&P 500 and Nasdaq 100, up over 7% after TSMC raised its 2026 capital expenditure forecast.
- Manufacturing Strength: US manufacturing production unexpectedly rose by 0.2% in December, surpassing expectations of a 0.1% decline, while November's figure was revised up to 0.3%, indicating economic resilience that boosts market confidence.
- Positive Earnings Season: In the first full week of Q4 earnings season, 89% of the 28 S&P 500 companies that reported exceeded expectations, with Bloomberg Intelligence forecasting an 8.4% earnings growth for the S&P 500 in Q4, further enhancing market optimism.
- Interest Rate Impact: Despite the stock market's gains, the 10-year T-note yield has risen to 4.19%, limiting upside potential for stocks, with the market pricing only a 5% chance of a 25 bp rate cut at the upcoming FOMC meeting on January 27-28.
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 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 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.
29 Analyst Rating
26 Buy
3 Hold
0 Sell
Strong Buy
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
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.
