Investment Recommendation (Micron - MU) - Micron is considered a compelling AI long-term investment due to its high bandwidth memory (HBM) chips, crucial for AI workloads [6] - Micron's valuation levels are helping make it a "screaming buy" [3] - Investors can buy Micron trading 20% below its June 2024 peaks and 30% below its average Zach's price target [3][9] - Analysts are calling for 47% revenue growth in fiscal year 2025 to nearly $37 billion, and another 34% growth the following year to nearly $50 billion [16] - Analysts are calling for roughly 518% growth on the bottom line to go from $130 million to $840 million, and another 62% growth the following year to $1350 million [17] Company Performance & Industry Position (Micron - MU) - Micron raised its Q4 guidance in mid-August, benefiting from the hyperscale data center boom [2][7] - Micron's growth in key areas has seen the semiconductor stock climb 1500% in the last 15 years, crushing the Zach tech sector which is up 675% [5][8] - Micron is working directly with AI chip powerhouse Nvidia and Nvidia's closest rival AMD [6] - Micron CEO has stated that AI will drive record demand for memory chips [6] - Micron is expanding its manufacturing footprint in the US as part of a larger reshoring boom [6] - Micron is a vertically integrated semiconductor company, designing, manufacturing, and testing all its chips in-house [6] Investment Recommendation (Arista Networks - AET) - Arista Networks is a pioneer and leader in cloud and AI networking [20] - Arista Networks is currently a Zach's Rank number two rated stock [22] - Any dip in Arista Networks shares is considered a good opportunity to buy given its role in the AI revolution [25] Company Performance (Arista Networks - AET) - Arista Networks' revenue surged 30%, and adjusted net income surged 38% year-over-year [22] - Arista Networks provides high-speed networking gear, switches, and routers for data centers [23] - Arista Networks' main customers are Microsoft and Meta Platforms [23] - Arista Networks raised its full-year guidance after reporting strong results [24]
Top Stock Picks for Week of September 1, 2025