Lam Research Corporation (NASDAQ:LRCX) is one of the best stocks for the next decade. On December 23, UBS raised the firm’s price target on Lam Research to $200 from $175 and kept a Buy rating on the shares. Earlier on December 18, B. Riley raised the firm’s price target on Lam Research to $195 from $180 with a Buy rating on the shares. The firm highlighted that Lam Research Corporation (NASDAQ:LRCX) is exceptionally well-positioned to benefit from the current surge in memory WFE spending. This advantage ...

Micron Technology (NASDAQ:MU) shares soared on Thursday after the company reported first-quarter financial results and guidance. Analysts see further upside and are raising their price targets.Micron Technology stock is charging ahead with explosive momentum. What’s behind MU gains?The Micron Analysts: JPMorgan analyst Harlan Sur reiterated an Overweight rating on Micron and raised the price target from $220 to $350.Goldman Sachs analyst James Schneider maintained a Neutral rating and raised the price targe ...

It's that time again — investors are prepping for this week's earnings reports which include homebuilders, several apparel companies and a big tech company. MU stock is moving. See the chart and price action here. Monday, Dec. 15The week begins with the following companies reporting after Monday's closing bell:Navan, Inc. (NASDAQ:NAVN)Ark Restaurants Corp. (NASDAQ:ARKR)Champions Oncology, Inc. (NASDAQ:CSBR)Read Next: Rivian’s AI Turn VS. Lucid’s Uber Alliance: Robotaxi Race For Second-Place   Tuesday, Dec. ...

Group 1: Nvidia and H200 GPUs - The approval of Nvidia's H200 GPUs for China is a significant development, with the US taking a larger cut of 25% compared to the previous 15% for H20s, indicating a balancing act between national security and trade profits [8][10] - There is uncertainty regarding the actual demand for H200s in China, but it is believed that major players like Alibaba and Tencent will seek these products due to their superior performance compared to domestic alternatives [12][15] - The performance of the H200 significantly outstrips that of domestic Chinese chips, with estimates suggesting it has six times the power of the H20, making it an attractive option for Chinese companies [17][18] Group 2: Broadcom and Market Position - Broadcom is positioned as a strong investment opportunity, potentially more rewarding than Nvidia in the long term, due to its scale and exposure to both ASIC and AI GPU markets [28][30] - The company is expected to report positive earnings, with guidance above consensus, and is benefiting from a growing customer base among tier one hyperscalers [38][39] - The memory shortage is impacting the industry, with significant price increases in DRAM, which could benefit companies like Micron and Apple, as they navigate the challenges posed by competitors [46][51] Group 3: AI Market Dynamics - The AI market is evolving, with Nvidia currently holding a market share estimated between 70% to 90%, but it is anticipated that they will eventually lose some market share as ASIC technology matures [40][42] - The conversation around Nvidia's market share is seen as premature, as the ASIC segment is still developing, and Nvidia's re-entry into the Chinese market could provide significant tailwinds [43][44] - The memory shortage is described as an AI-led phenomenon, with companies like Micron focusing on high-bandwidth memory (HBM) to meet demand, which is expected to drive their performance in the coming years [48][49]

Asia Macro Outlook 2026 Global Markets Research 3 December 2025 Mind the gap Strong AI demand, a memory supercycle and spillovers from a weak China are driving a North-South divide. Don't paint all of Asia with the same brush. Research Analysts Asia Economics Sonal Varma - NSL sonal.varma@nomura.com Ting Lu - NIHK ting.lu@nomura.com Euben Paracuelles - NSL euben.paracuelles@nomura.com Jeong Woo Park - NSL jeongwoo.park@nomura.com Japan Economics Kyohei Morita - NSC kyohei.morita@nomura.com Global FX Strateg ...

Core Insights - The surge in investment for data center infrastructure to support artificial intelligence has led to a memory shortage, driving prices up and positively impacting Micron Technology's upcoming quarterly earnings report [1] - Dell has reported that rising memory prices are increasing its operational costs and creating challenges due to memory shortages [1] - Goldman Sachs has a bullish outlook on Micron, predicting results that exceed Wall Street's consensus estimates ahead of its quarterly earnings call on December 17 [4] Industry Trends - The demand for high-performance computing has intensified since the launch of ChatGPT in 2022, leading to a significant increase in AI research and development [5] - The current pace of AI research and development is comparable to the early days of the Internet, with cloud service providers investing hundreds of billions of dollars in next-generation servers equipped with AI-optimized chips [6] - The computational requirements for training AI models are rapidly increasing, with Nvidia estimating that reasoning models could require over 100 times more compute power than previous models [7]

Market Overview - Major indices are set to close below their 50-day moving averages for the first time since April, indicating potential market volatility [2][6] - The Dow Jones Industrial Average is down more than 500 points, approximately 1.2%, while the S&P 500 is down about 61 points or 0.9% [7][8] - The Nasdaq composite and Nasdaq 100 also experienced similar declines, with the Russell 2000 down 2% [7] Sector Performance - Communication services sector saw gains, primarily driven by Alphabet, which was up as much as 6.3% intraday after Berkshire Hathaway disclosed a stake worth approximately $4.9 billion [10][11] - Financials, energies, and materials sectors were among the worst performers, contributing to overall selling pressure [9] Notable Stock Movements - Lithium producers, including SQM and Albemarle, experienced stock price increases of 9% and 2.2% respectively, following a bullish forecast from a major Chinese supplier [12] - Dell was the worst performer in the S&P 500, down 8.4%, due to a double downgrade from Morgan Stanley, citing risks from a memory supercycle [16][17] - Blue Owl Capital shares fell 5.6% amid concerns regarding its financing of data centers [18] Upcoming Events - Significant government data releases are expected this week, including video earnings, Fed minutes, and a jobs report, which could influence market direction [3][6]

Core Viewpoint - Rising memory costs and weakening non-AI hardware demand have led Morgan Stanley to downgrade ratings for major technology hardware manufacturers, indicating increasing margin pressure across the sector [1] Group 1: Memory Cost Impact - Analysts describe the current situation as a "memory supercycle," with NAND and DRAM spot prices increasing between 50% and 300% over the past six months, which is expected to negatively impact earnings until 2026 [2] - Historical trends show that hardware OEMs typically experience gross-margin compression 6-12 months after memory costs rise, with a projected median decline of 60 basis points in global OEM margins by 2026, contrary to Wall Street's expectations of slight margin expansion [2] Group 2: Company-Specific Downgrades - Dell Technologies has been double-downgraded to "underweight" from "overweight" due to its high dependence on memory-intensive products and a shift towards AI servers with lower margins [3] - Morgan Stanley has reduced Dell's price target from $144 to $110 and lowered its fiscal 2027 gross-margin forecast to 18.2%, a decrease of 220 basis points from previous estimates, alongside a 12% reduction in EPS estimates [4] - HP Inc. has also been downgraded to "underweight" from "equal-weight," with its price target cut from $26 to $24, as higher DRAM and NAND prices are expected to pressure its Personal Systems margins [4][5] - The fiscal 2026 gross-margin outlook for HP has been reduced by 90 basis points to 19.7%, leaving it 130 basis points below consensus, with a projected 9% decline in EPS despite an increase in revenue estimates to $56.5 billion [5] Group 3: Hewlett Packard Enterprise Adjustments - Hewlett Packard Enterprise's rating has been lowered to "equal-weight" from "overweight," with a price target reduction from $28 to $25, as integration challenges and rising component costs are anticipated to limit profitability [6] - The fiscal 2026 gross-margin forecast for HPE has been cut by 260 basis points to 32.9%, balancing expected benefits from networking with the negative impact of higher memory prices, and EPS estimates have been lowered to $2.18 from $2.52 [7]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Global Technology Hardware** industry, specifically the **Hardware OEM/ODMs** sector, which is facing increasing margin pressure due to a **memory supercycle** amidst weak hardware demand [1][8][9]. Core Insights and Arguments - **Memory Pricing Surge**: Memory prices (NAND and DRAM) have surged by **50-300%** in the last six months, driven by demand from hyperscalers and underinvestment in NAND [9][11]. - **Earnings Risk**: The memory supercycle poses a downside risk to Hardware OEM earnings heading into **2026**, with memory costs accounting for **10-70%** of product costs [9][12]. - **Historical Context**: The last memory cycle (2016-2018) saw a **median gross margin compression of 70bps** year-over-year, indicating potential future earnings pressure for OEMs with high memory exposure [10][11]. - **Current Demand Trends**: The current demand for non-AI hardware is tepid, with enterprise hardware budget growth projected at only **1.6%** year-over-year in **2026**, which is below historical averages [12][15]. - **Downgrades**: Several companies, including **DELL**, **HPQ**, **Asustek**, and **Pegatron**, have been downgraded to **Underweight** due to expected margin pressures and negative EPS revisions [21][22]. Company-Specific Changes - **Dell Technologies (DELL)**: Downgraded to **Underweight** with a new price target of **$110**, down from **$144** [21]. - **HP Inc. (HPQ)**: Downgraded to **Underweight** with a new price target of **$24**, down from **$26** [21]. - **Asustek**: Downgraded to **Underweight** with a new price target of **NT$500**, down from **NT$625** [21]. - **Pegatron**: Downgraded to **Underweight** with a new price target of **NT$58**, down from **NT$73** [21]. - **Hewlett Packard Enterprise (HPE)**: Downgraded to **Equal-weight** with a new price target of **$25**, down from **$28** [21]. - **Lenovo**: Downgraded to **Equal-weight** with a new price target of **HK$10.20**, down from **HK$13.00** [21]. - **Giga-Byte**: Downgraded to **Equal-weight** with a new price target of **$290**, down from **$370** [21]. Additional Important Insights - **Mitigation Strategies**: OEMs are expected to respond to rising memory costs through pricing increases and cost management strategies, but even with these efforts, gross margins are projected to compress by **60bps** year-over-year in **2026** [12][19]. - **Risk Factors**: Potential risks include being too early in the call regarding margin pressures, successful mitigation actions, and strong demand for AI infrastructure that could overshadow margin concerns [17][18]. - **Investment Opportunities**: Companies like **Apple**, **Micron**, and **SK Hynix** are highlighted as potential beneficiaries of the memory cycle due to their strong demand trends and margin resilience [18][58]. Conclusion - The hardware OEM/ODM sector is facing significant challenges due to rising memory costs and weak demand, leading to downgrades for several key players. The historical context of memory cycles suggests that margin pressures could persist, making it crucial for investors to monitor these developments closely.

Upgrades - Deutsche Bank upgraded Public Storage (PSA) and CubeSmart (CUBE) to Buy from Hold with price targets of $325 and $45, citing a positive outlook for the self-storage REIT sector ahead of Q3 reports [2] - BNP Paribas Exane upgraded Ciena (CIEN) to Outperform from Neutral with a price target of $185, up from $120, highlighting benefits from increasing data center investments [3] - Goldman Sachs upgraded Estee Lauder (EL) to Buy from Neutral with a price target of $115, up from $76, anticipating a fundamental inflection and potential return to sales growth in the September quarter [3] - BTIG upgraded Palo Alto Networks (PANW) to Buy from Neutral with a price target of $248, based on positive feedback from industry contacts regarding the company's growth targets of 14% total revenue growth and 26% growth in NGS ARR for FY26 [4] - BNP Paribas Exane double upgraded Micron (MU) to Outperform from Underperform with a price target of $270, up from $100, emphasizing the potential of high-bandwidth memory as a sustainable growth vector and the early stages of a memory supercycle [5] Downgrades - BofA downgraded Intel (INTC) to Underperform from Neutral with an unchanged price target of $34, citing challenges in competitive outlook and lack of a discernible AI strategy despite recent market cap gains [6] - Goldman Sachs downgraded PayPal (PYPL) to Sell from Neutral with a price target of $70, predicting transaction margin headwinds in 2026 due to interest rate pressures and changes in credit product performance [6] - BofA downgraded Texas Instruments (TXN) to Underperform from Neutral with a price target of $190, down from $208, noting that global tariff turmoil may hinder near- to medium-term demand improvement [6] - BofA downgraded GlobalFoundries (GFS) to Underperform from Neutral with an unchanged price target of $35, indicating a need for faster gross margin improvement and pricing power [6] - BofA downgraded Axcelis (ACLS) to Underperform from Neutral with a price target of $90, up from $81, while acknowledging the potential benefits of a proposed merger with Veeco Instruments (VECO) as being more long-term [6]