Core Insights - Micron's stock has reached an all-time high and has increased over 230% in 2025, driven by a super cycle in the AI memory market [1] - The company is gaining market share in high bandwidth memory chips, particularly against competitors SK Hynix and Samsung [1] Stock Performance - Micron has significantly outperformed the SMH Semiconductor ETF, indicating strong market performance [2] - The stock has broken previous highs, with a new supportive area identified around 265 [3][4] Technical Analysis - Current moving averages suggest a bullish trend, with a potential breakout above the 70 RSI threshold [4][5] - Key volume areas are identified near 260 and 230, indicating potential support levels [6] Options Strategy - An expected move for February 20th is approximately 18.7%, with a notable supportive area between 245 and 240 [7] - A proposed options trade involves a 250/240 put vertical, offering a 3:1 risk-reward ratio with a maximum loss of 750 [8][10]

Let's bring in Kevin Green, senior markets correspondent right away to help set up the action today. Uh so it looks like uh I mean futures are catching a bid, but this has happened basically all week. Uh and it's been a bit of a head fake.Now it does seems to be there's more strength right now. What's your take. >> Yeah, I would agree with you.I mean right now at least to start off today we are seeing some strength in the tech sector after Micron's earnings and then also maybe the possibility that the infla ...

Welcome to Morning Brief presented by Robin Hood, the home to commission free [music] trading. I'm Julie Hyman. Here's what we're watching today.First up, OpenAI is in talks to [music] raise $10 billion from Amazon. We'll have more on that report and what Amazon seeks to gain from that deal. Plus, as Micron prepares [music] to deliver its earnings after the bell, we'll break down the true cost of the artificial intelligence [music] buildout.And oil prices rebound after President Trump issues a complete bloc ...

Core Viewpoint - Micron Technology has experienced significant stock growth over the past decade, primarily driven by the demand for high bandwidth memory in artificial intelligence applications [2][6][8]. Group 1: Stock Performance - Micron stock has increased over 1,300% in the last 10 years, with a notable rise from $100 to over $1,434 in just one year [2][8]. - The stock traded in a tight range of $5 to $15 from the early 2000s to late 2010s, indicating a long period of stagnation before the recent surge [2][3]. Group 2: Drivers of Growth - The surge in Micron's stock price is attributed to the rise of artificial intelligence and the demand for high bandwidth memory, which is essential for training large language models [4][5]. - Sales of Micron's high bandwidth memory chips are growing at an impressive annual rate of 50%, contributing to the stock's nearly tripling since the start of 2025 [5][6]. Group 3: Future Outlook - High bandwidth memory currently constitutes about 15% of Micron's revenue, suggesting potential for further growth as demand in the AI sector continues to rise [6].

Core Insights - Nvidia is collaborating with Samsung to establish a new AI mega factory, deploying over 50,000 GPUs from Nvidia, with Hyundai also utilizing 50,000 Nvidia chips in a new AI factory [1][5] - South Korea's presidential office announced that more than 260,000 GPUs will be deployed across both public and private sectors, highlighting the shift towards AI infrastructure [2][5] - The computing landscape is undergoing a fundamental transformation due to AI and accelerated computing, necessitating a transition from traditional computing systems [3][4] Nvidia's Market Position - The deal with South Korea is significant for Nvidia, marking its entry into the AI revolution in the region, which is crucial for its market presence [6][7] - Nvidia's market cap is projected to reach $6 trillion within the next 12 to 18 months, driven by the demand for AI technologies [9] - The company is seen as a pivotal player in the tech market, with its foundational role in the ongoing fourth industrial revolution [10] Global AI Landscape - The collaboration with South Korean companies indicates a broader global interest in AI, moving beyond Silicon Valley [8] - Nvidia's strategic importance is underscored by its partnerships with major companies and governments, positioning it as a key player in the AI arms race [12][13] - The potential for Nvidia in the Chinese market is significant, with estimates suggesting a $20 billion annual opportunity, emphasizing the importance of negotiations with China [12] Future Considerations - Supply constraints and power supply issues could pose challenges for Nvidia in the coming years, particularly in the context of expanding AI infrastructure [14][15] - The ongoing demand for AI technologies suggests a sustained growth trajectory for Nvidia, reinforcing its status as a leader in the industry [9][10]

Company Performance - Samsung Electronics reported a 32.5% increase in operating profit for Q3, driven by rebounding demand for computer memory chips [1] - The company achieved a record quarterly revenue of 86 trillion won ($60.4 billion), a nearly 9% increase from the previous period, fueled by semiconductor and mobile phone sales [1][2] - Samsung's operating profit reached 12.2 trillion won ($8.6 billion) in the last quarter, marking a 160% increase from the previous quarter [3] Semiconductor Division - The semiconductor division generated 7 trillion won in operating profit for Q3, with strong sales in high bandwidth memory chips used for AI applications [3] - The company anticipates continued growth in semiconductor demand driven by artificial intelligence investments [4] - An advanced version of high-bandwidth memory chips, HBM3E, is in mass production, and samples of the next-generation product, HBM4, are being shipped to key clients [4] Market Outlook - The semiconductor market is expected to remain strong due to ongoing AI investment momentum, which is expanding market opportunities [2][4] - SK Hynix, another major South Korean chipmaker, also reported record operating profit attributed to AI-related growth, indicating a broader trend in the industry [2]

Core Viewpoint - Micron Technology Inc (NASDAQ:MU) is highlighted as an attractive investment opportunity with substantial upside potential, particularly in the context of the growing AI market and its competitive positioning against major players like Nvidia [1][2]. Financial Performance - Micron is experiencing a 50% quarter-over-quarter growth in high bandwidth memory chip supply to Nvidia, indicating strong demand and market traction [2]. - The company trades at only 11 times forward earnings, suggesting it is undervalued compared to its growth potential [2]. - Micron has raised its revenue and earnings guidance significantly in recent quarters, with net margins expanding from 18% to 22% [2]. Market Position - Micron is gaining market share from Samsung, the largest player in the high bandwidth memory chip sector, which is contributing to its rapid growth [2]. - The comparison with Nvidia shows that while Nvidia trades at over 40 times forward earnings, Micron's growth rates are nearly comparable, making it a compelling investment in the AI hardware space [2].

Core Viewpoint - The strong guidance from Micron indicates robust AI demand, but concerns about the sustainability of this demand and the cyclical nature of the memory chip market remain [2][4][5]. Group 1: AI Demand and Supply Constraints - AI demand for memory chips is strong and significantly supply constrained, which positively impacts pricing for companies like Micron [3]. - The current supply constraints are not expected to last indefinitely, raising questions about the long-term sustainability of AI-driven demand [4]. Group 2: Market Performance and Stock Outlook - Micron's stock has increased over 40% in the past month and has nearly doubled since the beginning of the year, indicating strong market performance [5]. - The exceptional outlook for the first fiscal quarter exceeds estimates, but the modest stock price increase suggests that much of the potential upside has already been factored in by investors [6][7]. Group 3: Long-term Cyclicality - Despite strong AI demand, the memory chip market is expected to remain cyclical over the next 5 to 10 years, leading to challenges in forecasting supply and demand [5]. - The current strong performance may not eliminate the cyclical nature of the industry, which is characterized by periods of boom and bust [4].