ab 5 February 2026 Global Research Micron Technology Inc Stronger For Longer; Raise PT to $450, Maintain Buy Summary Thoughts In conjunction with our latest round of industry checks, we once again flag strengthening pricing dynamics across both core DRAM and NAND. We now forecast C1Q26 industry contract pricing for DDR to be up ~62% Q/Q – a touch better than prior – and NAND up ~40% Q/Q (vs. +27% prior). More importantly, our industry conversations now point to memory supply shortages extending deeper into ...

Core Insights - The article provides a comprehensive comparison of Intel against its competitors in the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth prospects [1] Company Overview - Intel is a leading digital chipmaker specializing in microprocessors for personal computers and data centers, holding a significant market share in both sectors [2] - The company aims to revitalize its chip manufacturing business and develop advanced products [2] Financial Metrics - Intel's Price to Earnings (P/E) ratio is 782.67, significantly higher than the industry average, indicating potential overvaluation [3] - The Price to Book (P/B) ratio of 2.11 is below the industry average, suggesting possible undervaluation based on book value [3] - Intel's Price to Sales (P/S) ratio of 3.87 is also lower than the industry average, indicating potential undervaluation based on sales performance [3] - The Return on Equity (ROE) stands at 3.98%, which is below the industry average, indicating inefficiency in profit generation [3] - The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is $7.85 billion, above the industry average, highlighting strong profitability [3] - Gross profit is $5.22 billion, which is below the industry average, indicating challenges in revenue generation after production costs [3] Revenue Growth - Intel's revenue growth of 2.78% is significantly lower than the industry average of 34.81%, indicating potential sales performance issues [4] Debt-to-Equity Ratio - Intel has a lower debt-to-equity ratio of 0.44 compared to its top four peers, suggesting a more favorable balance between debt and equity financing [10] Summary of Key Takeaways - Intel's high P/E ratio indicates potential overvaluation, while its low P/B and P/S ratios suggest possible undervaluation [8] - The company shows lower profitability in terms of ROE compared to peers, but strong operational earnings as indicated by high EBITDA [8] - Challenges in generating profits and expanding revenue are highlighted by low gross profit and revenue growth [8]

Group 1 - U.S. stocks showed mixed performance, with the Nasdaq Composite gaining approximately 100 points on Friday [1] - Worthington Steel Inc shares increased by 6.9% to $41.43 after announcing a Business Combination Agreement with Kloeckner & Co, planning a voluntary public offer at 11 euros per share ($12.8) [1][2] - Other notable stock gains included Kopin Corp, which rose 17.1% to $3.46, and Immunitybio Inc, which gained 17% to $4.62 due to exceeding enrollment expectations for its clinical study [3] Group 2 - Riot Platforms Inc shares increased by 11.2% to $18.42 after acquiring 200 acres of land and signing a Data Center Lease and Services Agreement with Advanced Micro Devices [3] - Micron Technology Inc shares rose by 7.9% to $363.35 following a purchase of 23,200 shares by Director Teyin Liu at an average price of $337.14 per share [3] - Maxlinear Inc shares gained 6.2% to $20.38, with Benchmark analyst David Williams maintaining a Buy rating and raising the price target from $25 to $28 [3]

Core Insights - The article provides a comprehensive evaluation of Intel in the Semiconductors & Semiconductor Equipment industry, comparing its performance against major competitors to identify investment opportunities and risks [1] Company Overview - Intel is a leading digital chipmaker focused on microprocessors for personal computers and data centers, holding a significant market share in both PC and server markets [2] - The company aims to revitalize its chip manufacturing business, Intel Foundry, while developing advanced products within its Intel Products segment [2] Financial Metrics - Intel's current Price to Earnings (P/E) ratio is 759.17, which is 10.44 times higher than the industry average, indicating a premium pricing in the market [5] - The Price to Book (P/B) ratio stands at 2.04, significantly lower than the industry average, suggesting potential undervaluation [5] - The Price to Sales (P/S) ratio of 3.75 is also below the industry average, indicating that the stock may be undervalued based on sales performance [5] - Intel's Return on Equity (ROE) is 3.98%, which is 1.69% below the industry average, indicating inefficiencies in profit generation [5] - The company's EBITDA is $7.85 billion, which is 0.2 times below the industry average, suggesting lower profitability [5] - Gross profit is reported at $5.22 billion, indicating a performance that is 0.15 times below the industry average [5] - Revenue growth for Intel is at 2.78%, significantly lower than the industry average of 34.59%, indicating a slowdown in sales expansion [5] Debt to Equity Ratio - Intel has a debt-to-equity (D/E) ratio of 0.44, which is lower than its top four peers, indicating a stronger financial position and a favorable balance between debt and equity [8] Comparative Performance - In comparison to its peers, Intel's high P/E ratio suggests potential overvaluation, while its low P/B and P/S ratios indicate undervaluation relative to competitors [9] - Intel lags behind its peers in ROE, EBITDA, gross profit, and revenue growth, signaling weaker financial performance and growth prospects within the sector [9]

Core Insights - The article provides a comprehensive comparison of Intel against its competitors in the Semiconductors & Semiconductor Equipment industry, focusing on financial metrics, market position, and growth prospects for investors [1] Company Overview - Intel is a leading digital chipmaker specializing in microprocessors for personal computers and data centers, holding a significant market share in both sectors [2] - The company aims to revitalize its chip manufacturing business and develop advanced products within its Intel Products segment [2] Financial Metrics - Intel's Price to Earnings (P/E) ratio is 685.17, which is 9.61 times above the industry average, indicating a premium valuation [5] - The Price to Book (P/B) ratio stands at 1.84, slightly below the industry average, suggesting potential undervaluation based on book value [5] - The Price to Sales (P/S) ratio is 3.39, which is 0.27 times the industry average, indicating possible undervaluation based on sales performance [5] - Return on Equity (ROE) is 3.98%, which is 1.69% below the industry average, indicating inefficiency in profit generation [5] - EBITDA is reported at $7.85 billion, which is 0.2 times below the industry average, suggesting lower profitability [5] - Gross profit is $5.22 billion, indicating 0.15 times below the industry average, reflecting lower revenue after production costs [5] - Revenue growth for Intel is at 2.78%, significantly lower than the industry average of 34.59%, indicating a challenging sales environment [5] Debt to Equity Ratio - Intel has a debt-to-equity (D/E) ratio of 0.44, which is lower than its top four peers, indicating a stronger financial position and less reliance on debt financing [9][8] - This favorable balance between debt and equity is viewed positively by investors [9] Comparative Analysis - Intel's high P/E ratio compared to peers suggests potential overvaluation, while low P/B and P/S ratios indicate undervaluation relative to competitors [10] - In terms of ROE, EBITDA, gross profit, and revenue growth, Intel lags behind its peers, signaling weaker financial performance and growth prospects within the sector [10]

ab 7 January 2026 Global Research Micron Technology Inc Raising Estimates/PT Again After Management Meetings Summary Thoughts This week we hosted a series of bullish investor meetings/dinners with MU management (CEO, CFO, and IR). The company struck a positive tone - particularly around the durability of the cycle and we are raising estimates and PT yet again. Key highlights are below, but we still believe investors are underappreciating the degree to which AI has fundamentally made memory (DRAM in particul ...

06 Jan 2026 03:00:00 ET │ 14 pages Micron Technology Inc (MU.O) Lunch With The 'Cron – DRAM Market Is Being Served Hot. Expect More Upside, Reiterate Buy. CITI'S TAKE Vi e w p o i n t | Yesterday we hosted an investor lunch with Buy-rated Micron. The company was asked about increasing capex and capacity and stated it is keeping capacity expansion in line or below the overall DRAM industry to prolong the cycle. As a result, we believe DRAM could remain in shortage all year if demand does not fall off and wou ...

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **US Semiconductor Equipment** industry, specifically the capital expenditure (capex) updates of the **Big Three**: **TSMC**, **Samsung**, and **Intel**. [1] Core Insights and Arguments - The **Big Three** account for approximately **59%** of the projected **$115 billion** global **2026 Wafer Fabrication Equipment (WFE)** spending, which is expected to grow by **10% year-over-year**. The breakdown includes **30%** growth in **NAND**, **12%** in **DRAM**, and **6%** in **Foundry/Logic (F/L)**. [1] - The equipment sector is believed to be in **Phase 2 of an upcycle**, with expectations that **2026 WFE** spending could reach **$126 billion** under a bullish scenario. [1] - **TSMC** is anticipated to guide its **2026 capex** between **$46 billion** and **$48 billion**, with potential increases throughout the year, based on investor discussions suggesting a target of **$50 billion**. [1][2] - **Intel** is projected to maintain a **2025 gross capex** of **$18 billion**, with expectations for **2026** to be around **$16 billion**. Intel's capex is expected to stabilize as foundry operations improve, particularly for back-end customers. [1][3] - **Samsung** has indicated flexibility in its **2026 capex**, planning to increase investments in response to growing **AI** demand. In a related note, **Micron** has raised its **FY2026** net capex to **$20 billion**, reflecting a **45% year-over-year** growth. [1][4] Additional Important Information - The top-rated equipment picks for investment are **Lam Research Corp (LRCX)** and **Applied Materials Inc (AMAT)**. [1] - The earnings reports for the companies are scheduled as follows: **TSMC** on **January 15**, **Intel** on **January 22**, and **Samsung** on **January 29**. [2][3][4] - The report includes a disclaimer regarding potential conflicts of interest due to Citigroup's involvement with the companies mentioned, emphasizing that investors should consider this report as one of many factors in their investment decisions. [5][10][11]

Summary of the Conference Call Transcript Industry Overview - **Industry**: US Semiconductors and Semi Equipment - **Outlook for 2026**: Positive sentiment towards AI-driven stocks, with expectations for broader market performance as AI technology spills over into other sectors [2][4] Key Companies Mentioned - **Top Picks**: - Lam Research Corporation (LRCX) - Applied Materials (AMAT) - Teradyne (TER) - Texas Instruments (TXN) - Marvell Technology Group (MRVL) - Micron Technology (MU) - NVIDIA (NVDA) - Advanced Micro Devices (AMD) - Broadcom (AVGO) Core Insights and Arguments - **AI Impact**: AI has significantly influenced stock performance, particularly in the semiconductor sector, with expectations for continued growth as inference costs decrease and training datasets expand [2][4] - **Capex Growth**: Anticipated hyperscale capital expenditures (capex) to increase by approximately 35% year-over-year in 2026, although financing debates may arise as capacity is absorbed [2][4] - **SPE Sector**: The semiconductor equipment (SPE) sector is expected to benefit from AI advancements, with LRCX and AMAT identified as top picks due to their early position in the estimate revision cycle [2][4] - **Teradyne's Potential**: TER is viewed as undervalued, particularly in the test market, with expectations of significant revenue growth from its NVDA-related business [2][4] - **Marvell's Growth**: MRVL is expected to benefit from its relationship with Amazon and the ramp-up of its Maia 300 product line with Microsoft [2][4] - **Micron's Performance**: MU is projected to see substantial EPS growth, driven by increasing demand for memory in an AI-driven economy [2][4] Financial Estimates and Valuations - **LRCX Financial Estimates**: - Revised CY26E revenues from $24.6 billion to $24.7 billion, with EPS increased from $6.04 to $6.12 [9][11] - Price target raised from $175 to $200 based on a 25x multiple applied to the revised EPS estimate for 2027 [11][20] - **AMD and MRVL**: AMD's data center GPU revenue expectations are considered conservative, while MRVL's pivot towards licensing key IP is highlighted as a growth driver [8][2] Additional Insights - **Analog Sector**: Anticipated inventory tailwinds for analog stocks as tariff uncertainties diminish and interest rates decline, with TXN favored for its free cash flow potential [2][4] - **Market Sentiment**: The semiconductor market is expected to experience a shift from defensive to more aggressive positioning as AI technologies mature [2][4] - **Valuation Risks**: Potential risks include macroeconomic downturns, international trade disruptions, and technological innovations that could alter market dynamics [23][2] Conclusion - The semiconductor industry is poised for growth in 2026, driven by AI advancements and increased capital expenditures. Key companies like LRCX, AMAT, and MU are positioned to benefit significantly, while broader market dynamics may shift as AI technology becomes more integrated across various sectors.

Summary of Sandisk Corp (SNDK.O) Conference Call Company Overview - Sandisk Corp is a global data storage supplier specializing in NAND Flash solutions, including SSDs, memory cards, USB sticks, and portable drives. The company targets both enterprise and consumer markets, focusing on increasing its share in the Enterprise SSD segment post-spin from Western Digital in February 2025 [11][12]. Industry Dynamics - The NAND flash industry is experiencing a favorable supply/demand (S/D) environment, expected to persist through CY26. This is driven by strong demand from data centers, particularly for eSSDs used in generative AI training and inferencing services [2][9]. - Micron Technology's recent performance indicates robust demand momentum and favorable S/D conditions, with expectations of continued growth in NAND bit demand in the high-teens percentage range for CY25 [1]. Financial Performance - Sandisk's projected earnings per share (EPS) for FY2025 is $2.79, with significant growth expected in subsequent years, reaching $13.96 in FY2026 and $25.74 in FY2027 [3][8]. - The company anticipates sales revenue growth of 10% in FY2025, accelerating to 41.7% in FY2026 [8]. Investment Outlook - The target price for Sandisk shares is set at $280, representing a potential upside of 35.4% from the current price of $206.83. The expected total return includes no dividend yield [4][12]. - Analysts maintain a "Buy" rating on Sandisk shares, citing strong underlying data center demand and stable pricing conditions as key factors supporting this outlook [12]. Competitive Position - Sandisk's Bics8 technology is highlighted as a competitive advantage in the Enterprise SSD market, providing a strong moat against competitors [12]. - The company is cautious about potential price competition, particularly from aggressive Chinese players, which could impact margins and pricing stability [12][15]. Risks - Key risks include delays in increasing market share in the Enterprise segment, macroeconomic factors affecting data center spending, and potential supply/demand imbalances leading to pricing volatility [14][15]. - The cyclical nature of the memory industry poses additional risks, although Sandisk's established brand and joint venture with Kioxia provide some stability [16]. Conclusion - Sandisk Corp is positioned favorably within the NAND flash market, with strong demand from data centers and a solid growth trajectory. However, the company must navigate competitive pressures and macroeconomic uncertainties to achieve its financial targets [12][14].