Key Takeaways Micron posted fiscal Q1 2026 revenue of $13.64B, up 56.8% year over year, driven by AI-related memory demand.MU expects stronger Q2 2026 results, projecting $18.3-$19.1B in revenue and EPS of $8.22-$8.62. NVIDIA posted $57B in fiscal Q3 2026 revenue as Blackwell chips and cloud GPUs sold out. Banking on the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology, Inc. (MU) outperformed Wall Street’s darling NVIDIA Corporation (NVDA) last year (+239.1% vs +38.8%). Can Micron re ...

Key Takeaways MU posted fiscal Q1 2026 revenues of $13.64B, up 56.8% year over year, with profits beating estimates.MU benefited from strong AI-driven demand for high-bandwidth memory, keeping HBM supply tight.MU guided Q2 revenues of $18.3B-$19.1B and reported record $3.9B free cash flow in Q1.As 2026 draws closer, investors are actively seeking stocks poised to benefit from the artificial intelligence (AI) boom. Micron Technology, Inc. (MU) stands out given its recent strong quarterly results. So, does th ...

Key Takeaways AI demand lifts PLTR as soaring AIP adoption and a higher revenue outlook highlight accelerating growth.PLTR's AIP drives sharp Q3 growth, with U.S. commercial revenues up 121% year over year to $397 million.MU boosts guidance on strong HBM chip demand, pushing fiscal Q4 revenues to $11.32B and FY25 to $37.38B.The artificial intelligence (AI) boom helped NVIDIA Corporation (NVDA) become the most valuable company, with a market capitalization of $4.3 trillion. Major tech firms are increasingly ...

We recently published 12 Latest Stocks on Jim Cramer's Radar . Applied Materials Inc (NASDAQ:AMAT) is one of the stocks Jim Cramer recently discussed. Applied Materials Inc (NASDAQ:AMAT) is a key company in the semiconductor supply chain, as its machines enable chip manufacturers throughout the production process. Cramer discussed the firm’s role in the evolving high-bandwidth memory industry. HBM chips are just as important as AI GPUs since they enable computers to store and transfer data at high speeds ...

Core Insights - SK Hynix reported record quarterly revenue and profit, driven by strong demand for high bandwidth memory (HBM) used in generative AI chipsets [1][2] - Revenue increased by approximately 39% year-on-year in the third quarter, while operating profit surged by 62% [1][2] Financial Performance - Revenue for the third quarter reached 24.45 trillion won ($17.13 billion), slightly below the forecast of 24.73 trillion won [5] - Operating profit was reported at 11.38 trillion won, marginally lower than the expected 11.39 trillion won [5] Market Position - SK Hynix has established itself as a key supplier of HBM chips, benefiting from the AI boom and increased investments in AI infrastructure [2][3] - The company has differentiated itself in the DRAM market by securing a leading position in HBM and becoming the main supplier for Nvidia, a leading AI processor manufacturer [4] - Competitors such as Micron and Samsung are actively working to catch up in the HBM space [4]

Core Insights - Micron is experiencing significant growth due to the rising demand for AI infrastructure, with its stock gaining 40.6% in September [1] - The company sold $2 billion worth of high-bandwidth memory (HBM) chips in Q4 fiscal 2025 and is preparing to launch next-generation HBM4 chips [3] - Micron's revenue increased by 46% year over year in Q4 to $11.3 billion, with a non-GAAP gross margin of 45.7% [5] Demand for AI Infrastructure - The demand for high-bandwidth memory is surging, driven by major deals with tech giants like OpenAI and Nvidia for AI data centers [2] - Micron is prioritizing HBM production over standard DRAM chips, despite weak demand in the PC and smartphone markets [4] Financial Performance - Micron's revenue for Q4 fiscal 2025 reached $11.3 billion, with adjusted earnings per share more than doubling [5] - The company anticipates generating around $12.5 billion in revenue in Q1 fiscal 2026, with a projected non-GAAP gross margin of approximately 51.5% [5] Market Dynamics - The memory chip market is cyclical, with pricing influenced by supply and demand dynamics [7] - Historical trends indicate that periods of high demand are often followed by downturns, posing risks to Micron's profitability [7][8]

Core Insights - Micron has significantly increased its production of high-bandwidth memory (HBM) chips, which are essential for artificial intelligence (AI) applications, leading to a substantial rise in revenue [1][2][6] - The demand for HBM is currently outpacing supply, particularly as manufacturers prioritize HBM over standard DRAM, resulting in increased pricing for both HBM and DRAM [5][7] Revenue and Financial Performance - Micron's total revenue for the fourth quarter of fiscal 2025 reached $11.3 billion, marking a 46% year-over-year increase, with HBM revenue alone contributing nearly $2 billion [6] - The annual revenue run rate for HBM is estimated at $8 billion, a significant increase from previous levels where HBM revenue was nearly zero [6] - Adjusted gross margin for Micron was 46% in the fourth quarter, with expectations for the first quarter of fiscal 2026 to rise to between 50.5% and 52.5% [8][9] Market Dynamics - The memory chip market is cyclical, but the current up cycle is being sustained by the AI boom, which has shifted focus towards HBM [4][5] - Major investments in AI infrastructure by companies like OpenAI, Oracle, Nvidia, Microsoft, and Meta are driving demand for HBM [11] - Micron anticipates that DRAM supply growth will remain constrained, which should continue to support pricing in the near future [7] Future Outlook - Demand for HBM is expected to accelerate as AI infrastructure investments continue, although there are concerns about potential oversupply if future demand does not meet expectations [12] - The memory chip industry has historically experienced cycles, and while the current conditions are favorable, there is uncertainty regarding the sustainability of this up cycle [13]

Group 1: Micron Technology, Inc. - Strong demand for Micron's AI-focused high-bandwidth memory (HBM) chips led to significant revenue growth, with Q4 revenues reaching $11.32 billion, up from $7.75 billion year-over-year [1] - For the full fiscal year 2025, Micron's revenues totaled $37.38 billion, an increase from over $25.11 billion the previous year, with net income at $8.54 billion [2] - Micron's cloud memory business unit reported $4.54 billion in sales, more than tripling year-over-year, prompting an increase in fiscal first-quarter revenue guidance to $12.5 billion [3] - CEO Sanjay Mehrotra expressed optimism about the company's future, highlighting Micron's unique position as the only U.S.-based memory manufacturer to capitalize on AI opportunities [4] - The rising demand for HBM chips, used in NVIDIA's semiconductors and AI-enabled smartphones, is expected to enhance Micron's performance [5] - Micron trades at a forward P/E ratio of 12.56, making it appear more affordable compared to NVIDIA [11][13] Group 2: NVIDIA Corporation - NVIDIA has strengthened its partnership with OpenAI, pledging to invest $100 billion and supply at least 10 gigawatts of systems [6] - The company plans to invest $5 billion in Intel common stock to develop niche products for data centers and personal computers [7] - NVIDIA reported a 56% year-over-year increase in fiscal Q2 revenues, reaching $46.7 billion, driven by strong sales of Blackwell chips [8] - Despite U.S.-China trade issues, NVIDIA successfully sold H20 chips to other customers, indicating resilience against tariffs [9] - NVIDIA's forward P/E ratio stands at 40.11, suggesting it may be overpriced relative to Micron [11][13]

Core Insights - Micron's fiscal fourth quarter earnings exceeded Wall Street expectations, signaling positive momentum for the AI sector and investor confidence in the company's stock performance [1][2] - The company's revenue for the fourth quarter reached $11.3 billion, surpassing the $11.15 billion forecasted by analysts, with adjusted earnings per share of $3.03, exceeding the projected $2.84 [2] - Data centers contributed significantly to Micron's revenue, accounting for 40% of total revenue in the fourth quarter, driven by the AI data center boom [3] Financial Performance - Micron's guidance for the fiscal first quarter of 2026 is optimistic, projecting revenue between $12.2 billion and $12.8 billion, above the $11.9 billion expected by analysts, with adjusted earnings per share anticipated to be between $3.60 and $3.90, also exceeding the $3.05 forecasted [4] - The company has positioned itself to benefit from the anticipated trillions of dollars in AI investments, with CEO Sanjay Mehrotra highlighting Micron's unique position as the only US-based memory manufacturer [5] Competitive Landscape - Micron is one of the three leading memory chipmakers, alongside SK Hynix and Samsung Electronics, with the latter lagging in the AI sector [6] - Micron's DRAM chips, essential for various applications including AI data centers, have historically generated the majority of the company's revenue [6] - The company's HBM chips, which are critical for AI infrastructure, are utilized in conjunction with Nvidia's GPUs in data centers [7]

Core Insights - AMD's MI350 AI processor platform has been adopted by major cloud companies like Oracle, OpenAI, and Microsoft, with Oracle planning to deploy 130,000 MI355X GPUs for AI training and inference [1] - Micron's HBM is integrated into AMD's upcoming MI355X GPUs, indicating strong collaboration between the two companies [2] - Micron's growth is significantly driven by the increasing demand for memory chips in AI applications, particularly in data centers [3] Micron's Financial Performance - Micron raised its fiscal Q4 revenue guidance by $500 million to $11.2 billion, with adjusted earnings guidance increased to $2.85 per share, reflecting a 45% year-over-year revenue increase and more than doubling earnings from $1.18 per share a year ago [4] - The stock price of Micron has surged 78% this year, with expectations for a positive impact from the upcoming fiscal Q4 results [5][7] Market Trends and Growth Catalysts - The AI revolution is benefiting Micron, as its memory chips are increasingly used in AI-powered applications, with a notable demand in data centers [6] - The smartphone market is projected to grow by 1.2%, with generative AI-capable smartphones expected to capture 30% of the market this year, rising to 70% by 2029, which is favorable for Micron [10][11] - The AI PC market is anticipated to see an 84% increase in shipments next year, providing another growth avenue for Micron [12] Future Prospects - Micron is sampling its next-generation HBM4 chips, which promise a 60% improvement in compute performance and a 20% reduction in power consumption, indicating strong future growth potential [9] - The upcoming launch of AMD's MI400 GPUs, featuring 432 GB of HBM4, and Nvidia's transition to HBM4 are expected to further drive demand for Micron's products [8] Valuation and Investment Considerations - Micron's stock is currently trading at 25 times trailing earnings, which is lower than the Nasdaq-100's multiple of 31, suggesting potential for valuation improvement [14] - Analysts predict a 58% increase in Micron's earnings for the next fiscal year, making it an attractive investment opportunity [14]