China's latest export controls on rare earths are expected to have a direct impact on the global semiconductor supply chain, complicating the production of AI and memory chips from major US and South Korean suppliers, according to analysts. On Thursday, China's Ministry of Commerce imposed a raft of new export controls on rare earth materials critical for the chip manufacturing process. It imposed restrictions on the export of technologies related to rare earth production, such as mining, smelting and sep ...

Justin Sullivan / Getty Images Shares of memory chip maker Micron Technology are up sharply this year. Key Takeaways Shares of memory chip maker Micron Technology climbed to a fresh high to start the week, extending their recent rally. Morgan Stanley analysts upgraded the stock on expectations of AI-driven growth, while partner Advanced Micro Devices announced a massive deal with OpenAI Monday. Micron Technology's (MU) stock has had a strong run in 2025 so far, and some Wall Street bulls say it's se ...

[Music] Welcome back to Morning Movers. Recapping one of our top stories this morning. Morgan Stanley upgrading Micron to overweight and raising its price target to 220 from 160.Memory semiconductors have been on a surge of late. Micron is up more than 200% off its April lows. Time now for options corner.Joining us now to take a deeper look at Micron is Rick Ducat lead a market technician here on Schwab Network. All right, Rick, take us through the trends you notice in this chart. Well, Micron doing pretty ...

(Reuters) -OpenAI (OPAI.PVT) CEO Sam Altman has embarked on a global fundraising initiative spanning East Asia and the Middle East, seeking financing and manufacturing partners to meet the company's demand for its computing capacity, the Wall Street Journal reported on Saturday, citing sources familiar with the meetings. Altman has held discussions since late September in Taiwan, South Korea, and Japan with major suppliers such as Taiwan Semiconductor Manufacturing, Foxconn, Samsung, and SK Hynix to boost ...

Core Viewpoint - Shares of Samsung Electronics and SK Hynix experienced a rally following the announcement of letters of intent to supply memory chips for OpenAI's data centers [1] Company Summary - Samsung Electronics and SK Hynix are South Korean chipmakers that have signed agreements to provide memory chips [1] Industry Summary - The collaboration between these chipmakers and OpenAI highlights the growing demand for memory chips in data centers, particularly in the context of AI and machine learning applications [1]

Core Viewpoint - Tech companies are heavily investing in infrastructure to meet the demands of artificial intelligence (AI) systems, with Micron Technology positioned to benefit significantly from this trend [1][2]. Company Performance - Micron Technology produces memory and storage solutions essential for AI, leading to strong financial results, with a 49% increase in revenue to a record $37.4 billion for the fiscal year ending August 28, 2025 [4][9]. - Net income surged by 998%, rising from $778 million to $8.5 billion, while earnings per share (EPS) increased by 984% to $7.59 [4][9]. Future Projections - The company forecasts continued growth, projecting first-quarter revenue of $12.5 billion and an EPS of $3.56 for the 2026 fiscal year [5]. - Data center spending is expected to rise from $430 billion in 2024 to $1.1 trillion by 2029, which could further enhance Micron's market performance [6][9]. Valuation - Micron is currently trading at 21 times earnings and just 10 times forward earnings, indicating a relatively low valuation compared to peers, making it an attractive buy-and-hold opportunity through 2030 and beyond [7][9].

Group 1 - Samsung Electronics and SK Hynix have signed letters of intent to supply memory chips for OpenAI's data centers [1] - This collaboration marks a significant partnership between South Korean chipmakers and the AI industry [1] - The move is expected to enhance the capabilities of OpenAI's data centers, which are crucial for the development of AI technologies [1]

Core Viewpoint - The strong demand for memory chips, particularly in AI applications, has significantly boosted Micron Technology's stock performance in 2025, with expectations for continued growth in the coming year [1][5][12]. Group 1: Financial Performance - Micron reported a 49% year-over-year increase in revenue for fiscal 2025, totaling $37.4 billion [5]. - Non-GAAP earnings surged by 537% year-over-year to $8.29 per share [5]. - The company anticipates earnings of $3.75 per share in fiscal Q1, representing a 44% revenue increase year-over-year [13]. Group 2: Market Demand and Growth Drivers - The demand for memory chips is driven by their use in data centers for AI workloads, with revenue from high-bandwidth memory (HBM), high-capacity RAM, and server DRAM increasing over fivefold to $10 billion in fiscal 2025 [6][7]. - Goldman Sachs forecasts a 23% increase in demand for HBMs used in GPUs and an 82% increase for HBMs in ASICs in 2026 [8]. - The average selling price of HBM is expected to rise by 18.5% in 2026, contributing to growth in the HBM market [9]. Group 3: Future Outlook - Micron is positioned to sell its entire HBM capacity for 2026, with ongoing discussions for future supply agreements [10][9]. - The market for AI smartphones is projected to grow by 32% and AI-enabled PCs by 60% in revenue next year, expanding Micron's addressable market [11]. - Analysts predict earnings could double to $16.30 per share in the new fiscal year, potentially increasing the stock price to $359, more than double its current value [14][15].

Market Overview - US stock futures are rebounding after a sell-off, with major averages still near record highs, particularly the S&P 500, which has not dropped by at least 2% in 107 sessions, the longest stretch since July 2024 [1][2] - Tech stocks, which experienced significant selling, are seeing a rebound driven by renewed optimism in AI, particularly following positive earnings from Micron [2][6] Company Highlights - Micron reported fiscal fourth-quarter revenue of $11.3 billion, exceeding expectations, and adjusted earnings of $3.3, also above forecasts. The CEO indicated that trillions of dollars will be invested in AI, with a significant portion allocated to memory products [15][16] - Alibaba's stock surged to a four-year high after announcing plans to increase AI spending beyond an initial target of $50 billion and a partnership with Nvidia to develop AI infrastructure. The stock rose over 9% following the announcement [3][9][10] Industry Trends - The AI sector is experiencing fluctuating sentiment, with investors oscillating between excitement and skepticism. Recent developments from companies like Alibaba and Micron are contributing to renewed optimism [8][29] - Asian stocks are trading near four-year highs, with the Hang Seng and Shanghai Composite indices showing significant gains, indicating a strong performance in the region [12][13] Federal Reserve Insights - Fed Chair Jerome Powell indicated that equities are highly valued, contributing to a slight market pullback. However, there is optimism regarding potential interest rate cuts later this year [7][20] - Fed Governor Michelle Bowman expressed concerns about the labor market's fragility and suggested that the Fed may need to adjust policy more aggressively if conditions worsen [22][23]

Core Insights - Micron Technology's shares have increased approximately 97% year-to-date, driven by strong demand for memory chips and storage solutions, particularly in the AI sector [1] - The company achieved record revenue of $37.4 billion in fiscal 2025, a nearly 49% increase from the previous year, with gross margins expanding by 17 percentage points to 41% [2] - High-bandwidth memory (HBM), high-capacity DIMMs, and low-power server DRAM generated $10 billion in revenue in fiscal 2025, reflecting a more than fivefold increase from the prior year due to rising demand for AI technologies [3] Market Dynamics - Tight DRAM supply and increasing AI-related demand are creating favorable pricing dynamics, which are expected to enhance Micron's margins and share price [4] - The strength in HBM positions Micron advantageously as AI workloads demand faster and denser memory [4] - The NAND business is also benefiting from improved data center demand and healthier industry conditions, providing additional profitability avenues [4] End Market Demand - Solid end market demand, particularly in data centers, is anticipated to drive Micron's financial performance and share price [5] - Growth in data centers is expected from both AI and traditional servers, with management forecasting an acceleration in server unit growth this year [5] - The rise of AI agents and the complexity of enterprise workloads are contributing to strong demand for Micron's DRAM products [5]