Few artificial intelligence (AI) stocks have seen more capital pile into them in such a short period than Micron Technology (NASDAQ: MU). The memory-chip maker has seen its stock soar 250% since the start of September, and now sports a market cap of over $460 billion. With the stock already 44% higher through the first few weeks of 2026, investors may be wondering whether it's set to surpass $1 trillion in the near future. Another doubling will just about do it. Where to invest $1,000 right now? Our anal ...

By Heekyong Yang and Hyunjoo Jin SEOUL, Jan 28 (Reuters) - South Korea's SK Hynix on Wednesday reported its quarterly profit more than doubled, hitting a record high and beating forecasts, and predicted ​that the artificial intelligence boom would sustain rapid growth in memory chip demand. The earnings beat plus ‌the announcement of its biggest ever share cancellation helped propel shares in the Nvidia supplier 9% higher in after-hours trading. SK Hynix shares ‌have risen about 30% so far this year. ...

Core Insights - Micron Technology is becoming a crucial player in the AI semiconductor market, particularly in the memory chip segment that supports Nvidia's GPUs [1][2] - The demand for DRAM and HBM memory chips significantly exceeds supply, benefiting Micron in both the short and long term [9] Company Overview - Micron Technology specializes in memory chips, including DRAM and HBM, which are essential for AI computations due to their high data retrieval speeds [7] - The company has a market capitalization of $450 billion and a gross margin of 45.53% [8] Market Dynamics - Only three companies, including Micron, dominate the global supply of DRAM and HBM, leading to limited supply and massive demand [9] - Micron has already committed its entire supply of HBM for the 2026 calendar year, indicating strong future revenue prospects [10] Expansion Plans - Micron is investing over $200 billion to enhance its U.S. manufacturing capacity, including expansions in Virginia and new facilities in Idaho and New York [12] - The company has also signed a letter of intent to acquire a semiconductor fabrication site in Taiwan for $1.8 billion [12] Valuation and Investment Outlook - Despite a significant stock price increase in 2025, Micron's valuation remains reasonable at 5.5 times forward sales and 11 times forward earnings [13] - Micron is positioned as a long-term player in the AI sector, making it a solid investment opportunity for an AI-driven future [13]

Core Viewpoint - Micron Technology, Inc. reported significantly better-than-expected earnings for its first fiscal quarter of FY 2026, driven by record revenue from high bandwidth memory (HBM) due to strong demand in the Data Center market [1]. Group 1: Financial Performance - The company generated record HBM-related revenue, indicating robust performance in a key product segment [1]. - The earnings exceeded market expectations, showcasing the company's strong operational capabilities and market positioning [1]. Group 2: Market Demand - There is strong demand from the Data Center market, which is a critical driver for Micron's revenue growth [1].

Core Insights - Micron Technology, Inc. reported significantly better-than-expected earnings for the first fiscal quarter of FY 2026, driven by record revenue from high bandwidth memory (HBM) due to strong demand in the Data Center market [1] Financial Performance - The company generated record HBM-related revenue, indicating robust performance in a key product segment [1] Market Demand - Strong demand from the Data Center market has been a critical factor contributing to the company's financial success in this quarter [1]

Core Viewpoint - Micron Technology, Inc. (NASDAQ:MU) is recognized as one of the best aggressive growth stocks, with analysts maintaining a positive outlook on its performance and market position, particularly in the high bandwidth memory (HBM) sector [1][5]. Group 1: Analyst Ratings and Price Targets - Mizuho analyst Vijay Rakesh reiterated an Outperform rating on Micron with a price target of $265 following discussions with company executives [1]. - Wells Fargo analyst Aaron Rakers raised the price target for Micron from $220 to $300, maintaining an Overweight rating after meetings with the CEO and other executives [5]. Group 2: Demand and Market Trends - Demand for high bandwidth memory (HBM) is expected to remain strong through 2026 and 2027, with approximately 40% of Micron's DRAM business projected to see revenue and margin improvements in the February quarter due to favorable pricing trends [2]. - The NAND flash memory business is experiencing disciplined capital expenditure, while demand for AI server applications is increasing for QLC enterprise solid-state drives (eSSDs) [4]. Group 3: Product Innovations and Roadmap - Mizuho is optimistic about Micron's HBM roadmap, which includes AI-specialized HBM4e and custom HBM solutions, expected to enhance DRAM content and pricing [3]. - Micron is recognized for its innovative memory and storage solutions, offering a range of high-performance DRAM, NAND, and NOR products [6].

Group 1 - Micron's stock has experienced a significant increase, rising 170% from its April lows, with a 40% gain since the end of August [1][2] - The company is benefiting from the AI data center boom, which has shifted perceptions from being viewed as a commodity shipmaker to a key player in the memory and storage market [2][3] - Micron reported a 46% year-over-year revenue increase and a nearly 22% increase from the previous quarter, exceeding expectations [4][5] Group 2 - The company's gross margin was reported at just under 46%, an increase of over 900 basis points year-over-year, while the operating margin improved by 1,250 basis points [4] - Micron's earnings per share reached $3.30, significantly higher than Wall Street's expectation of $2.55, marking a substantial increase from the previous quarter's earnings of $1.91 [5]

Core Viewpoint - Nvidia is expected to report strong Q2 earnings, driven by significant capital expenditures from hyperscalers for AI infrastructure, which may also positively impact Micron Technology's stock due to its role in the AI supply chain [5][9][10]. Group 1: Nvidia's Performance and Market Context - Nvidia is facing challenges this year due to various factors, including trade policies and its business in China, but remains on track for growth [2]. - The hyperscalers, including Microsoft, Alphabet, Amazon, and Meta Platforms, are making record capital expenditures to enhance their data centers and cloud computing capabilities, primarily focusing on AI [5][7]. - Taiwan Semiconductor Manufacturing Company (TSMC) reported $30 billion in revenue, indicating strong demand for Nvidia's GPUs, as TSMC is a key foundry partner [8]. Group 2: Micron Technology's Positioning - Micron Technology is positioned to benefit from the AI infrastructure boom, as high-performance memory chips are essential for processing the massive data loads generated by AI models [10][13]. - Large-scale initiatives like Project Stargate demonstrate the extensive buildout of data centers, which require advanced networking and high-performance memory [11]. - The shift from training AI models to deploying AI software in enterprise workflows necessitates robust hardware, further increasing demand for Micron's DRAM and high bandwidth memory (HBM) solutions [12][13]. Group 3: Investment Opportunity in Micron - Micron is trading at lower valuation levels compared to other semiconductor companies, which may indicate an undervaluation of its role in the AI infrastructure [17][21]. - Each dollar spent on AI GPUs increases the need for complementary solutions like HBM, positioning Micron as a direct beneficiary of AI infrastructure spending [20]. - The market has not fully recognized the importance of HBM in the next phase of AI growth, suggesting Micron represents an underappreciated investment opportunity [21].

Group 1 - Micron reported better-than-expected earnings and revenue, with shares rising in extended trading [1] - The company forecasts revenue of approximately $10.7 billion for its fiscal fourth quarter, a 38% increase from $7.75 billion a year earlier, exceeding the $9.9 billion average analyst estimate [1] - Total sales for the third quarter jumped 37% to $9.3 billion, compared to $6.81 billion a year ago [2][3] Group 2 - Data center revenue more than doubled in the third quarter, driven by soaring demand in the high bandwidth memory (HBM) market due to the artificial intelligence boom [2] - Earnings per share were reported at $1.91, adjusted, surpassing the expected $1.60 [3]