Key Points Micron is a leading maker of computer memory products that are vital to the efficient operation of AI data center servers. Its revenue, net income, and free cash flow are growing at incredible rates due to a shortage in computer memory. It trades at a low P/E ratio relative to other AI hardware stocks. 10 stocks we like better than Micron Technology › Fears abound that the market is in an artificial intelligence (AI) bubble. But despite what the talking heads are saying, a full 90% of ...

Today, Jan. 2, 2026, Micron surges into 2026 as Bernstein points to AI-fueled memory demand. NASDAQ : MUMicron TechnologyToday's Change( 10.45 %) $ 29.82Current Price$ 315.23Key Data PointsMarket Cap$321BDay's Range$ 294.86 - $ 315.5452wk Range$ 61.54 - $ 315.54Volume1.8MAvg Vol26MGross Margin45.56 %Dividend Yield0.16 %Micron Technology (MU +10.45%), a DRAM and flash memory producer, closed Friday at $315.42, up 10.52% on the session. Trading volume reached 41.9 million shares, about 62% above its three-mon ...

Core Insights - Applied Materials (AMAT) is experiencing positive trends in the Dynamic Random Access Memory (DRAM) market, which may facilitate its next growth phase [2] - The company has seen significant revenue growth from leading-edge DRAM customers, with a reported increase of over 50% in the last four fiscal quarters [3][11] - The demand for DRAM is increasingly linked to artificial intelligence (AI), as AI servers require more advanced memory solutions [4] DRAM Market Dynamics - Applied Materials has strengthened its position in the DRAM market, particularly with leading-edge customers who typically increase spending first when new memory technologies are introduced [3] - The rise in AI workloads is driving higher memory content per server, prompting memory manufacturers to invest in advanced DRAM production, which benefits Applied Materials [4][6] - Management anticipates that DRAM and high-bandwidth memory (HBM) will be among the fastest-growing segments in semiconductor equipment spending for 2026 [5][11] Competitive Landscape - Competitors like Lam Research and ASML Holdings are also making strides in the DRAM and logic sectors, with Lam Research gaining traction due to AI-related demand [7] - ASML's growth is supported by its DRAM and logic customers, who are increasing their use of advanced technology in response to rising AI infrastructure spending [8] Financial Performance and Valuation - Applied Materials' stock has increased by 44.3% over the past six months, outperforming the Electronics - Semiconductors industry, which grew by 25.8% [9] - The company currently trades at a forward price-to-sales ratio of 6.99X, which is above the industry average of 6.42X [12] - Earnings estimates for fiscal 2026 and 2027 indicate year-over-year growth of 1.4% and 17.9%, respectively, with recent upward revisions in estimates [15]

The year 2025 began with post-election optimism and expectations of a strong first quarter. Instead, markets were hit by the rise of low-cost AI initiatives from China, and its adverse impact on the U.S. Big Tech, Trump tariffs, sticky inflation, and persistently high interest rates. Stabilization in the market returned in the month of May after a tariff-led, turbulent April.Market euphoria started to solidify from midyear, thanks to easing trade tensions. There have been three Fed rate cuts this year, with ...

As Micron Technology prepares to unveil its fiscal first quarter 2026 results on Wednesday, December 17, investors face a critical moment in assessing whether the Idaho-based memory semiconductor giant can sustain its extraordinary momentum. The company’s stock currently trades around $241, having more than tripled since the beginning of 2025, though it remains below the $260 peak reached earlier this month. This strong and rapid annual gain encapsulates both the promise and peril of investing in a busine ...

Core Insights - Micron Technology is experiencing a significant surge in its memory business, with stock prices increasing by 85% over the last three months due to rising memory prices [1][4]. Company Overview - Micron is a leading supplier of memory chips, particularly dynamic random access memory (DRAM), which is utilized in computers, phones, and data centers. The competitive nature of DRAM as a commodity product presents both opportunities and challenges for investors [2]. Market Demand and Revenue Growth - The demand from data centers is driving a shortage of memory chips, which has resulted in a 49% increase in Micron's fiscal 2025 revenue [4]. - Analysts predict continued growth, fueled by a significant rise in DRAM selling prices, with adjusted earnings per share reaching $8.29 in fiscal 2025 and expectations for strong growth in fiscal Q1 2026 [5]. Financial Metrics - Micron's current market capitalization stands at $271 billion, with a stock price of $241.20. The stock is trading at approximately 15 times fiscal 2026 earnings estimates, which is considered a fair valuation given the historical revenue fluctuations [6][7]. - The company has a gross margin of 40.17% and a dividend yield of 0.19% [7]. Future Outlook - Management anticipates that the limited supply of DRAM will persist into the next year, suggesting potential for further revenue and earnings growth. As long as these market conditions remain, Micron is viewed as a solid investment opportunity [7].

Shares of the memory specialist have tripled this year, but can they continue to rise following its upcoming quarterly report?Micron Technology (MU 6.70%) has been on fire in 2025, rising an impressive 200% thanks to the outstanding growth in the company's revenue and earnings. Investors may now be wondering if it is a good idea to buy shares of this memory specialist in anticipation of more upside.The company will release its fiscal 2026 first-quarter results on Dec. 17. Micron's quarterly report is going ...

Memory chips are experiencing a surge in demand driven by artificial intelligence (AI) operations. AI and consumer electronics companies now fight for the dwindling supply of these chips. Against this backdrop, TD Cowen analyst Krish Sankar sees significant potential for 2026 in Applied Materials (AMAT), a materials engineering solutions company. This chip manufacturing equipment firm is exposed to strong tailwinds from the demand for dynamic random access memory (DRAM) and the leading-edge foundry indust ...

Core Viewpoint - Bank of America upgraded Applied Materials, Inc. (NASDAQ:AMAT) to "Buy" from Neutral with a price target of $250, citing attractive valuation and growth prospects in wafer fab equipment (WFE) for 2026, driven by strong DRAM investments [1][3] Group 1: Company Overview - Applied Materials, Inc. is a leader in materials engineering solutions, providing manufacturing equipment, services, and software to the semiconductor, display, and related industries [3] Group 2: Financial Estimates - Bank of America raised its WFE growth estimates for calendar years 2025 and 2026 by 6% and 9%, respectively [2]

Core Insights - Micron Technology achieved record sales in its DRAM business for fiscal 2025, with revenues of $28.6 billion, marking a 62% year-over-year increase [1][9] - The fourth quarter of fiscal 2025 saw DRAM sales contribute $9 billion, accounting for approximately 80% of total sales [1] - Growth was driven by increased demand across various sectors, including data centers, PCs, phones, and automotive, alongside improved pricing due to limited DRAM supply [2] Revenue and Profitability - Micron's high-bandwidth memory (HBM) chips generated nearly $2 billion in sales during the fourth quarter, leading to an annualized run rate of about $8 billion [2] - Gross margins improved significantly to 41% in fiscal 2025, up from 24% the previous year [4] - For the first quarter of fiscal 2026, Micron anticipates revenues of approximately $12.5 billion, with gross margins expected to remain above 51% [4] Market Outlook - The company expects continued strong demand for memory products, particularly from AI servers, AI-ready smartphones, and AI PCs, while industry DRAM demand is projected to grow in the high-teens percentage in calendar 2025 [3] - Micron's bit supply growth is expected to lag behind industry demand, potentially leading to increased prices and margin expansion [3] Competitive Landscape - Micron competes with Western Digital and Seagate in the data storage market, with Western Digital focusing on both HDDs and NAND-based SSDs, while Seagate is expanding its presence in the SSD market [5][6] Stock Performance and Valuation - Micron's shares have increased by approximately 86.1% year-to-date, outperforming the Zacks Computer – Integrated Systems industry's growth of 41.4% [7] - The company trades at a forward price-to-sales ratio of 3.43, slightly below the industry average of 3.86 [10] - The Zacks Consensus Estimate for fiscal 2026 earnings suggests a year-over-year increase of about 64.8%, with recent upward revisions in estimates [13]