Core Insights - Microsoft Corp. has entered into a deal with neocloud company Nebius Group NV to enhance its computing power for developing large language models and a consumer AI assistant [1] - The deal is valued at up to $19.4 billion and includes access to over 100,000 Nvidia GB300 chips, which has positively impacted Nebius shares [2] - This partnership is part of a broader strategy to address AI data center capacity shortages and to optimize Microsoft's own server farms for AI services [3] Company Strategy - Microsoft has committed over $33 billion to various neocloud providers, indicating a strategic shift towards leveraging smaller infrastructure firms for essential computing resources [4] - The company is currently in a "land-grab mode" in the AI sector, aiming to eliminate constraints on capacity by renting server access from neoclouds [5] - The increasing demand for generative AI has strained data center infrastructure, prompting Microsoft to utilize neocloud facilities for internal and OpenAI projects [6] Operational Details - The first foundation AI models under consumer AI chief Mustafa Suleyman were trained at a CoreWeave data center, showcasing the collaboration with neocloud providers [7]

Core Viewpoint - Mizuho Securities has increased its price target for Micron Technology (MU) from $155 to $182, maintaining an "Outperform" rating, driven by strong demand for High Bandwidth Memory (HBM) and AI applications [1] Group 1: Demand and Market Dynamics - Mizuho anticipates stronger orders for Nvidia's new GB300 chips, which require advanced memory solutions, with an estimated 25% of Nvidia's July quarter shipments being GB300 chips, potentially exceeding 50% in the October quarter [2] - The improvement in supply-demand dynamics in both DRAM and NAND memory markets is noted, with recent capacity cuts by major suppliers leading to a 20-30% increase in memory prices from current levels [3] Group 2: Company Positioning and Performance - Micron is one of only two qualified suppliers for next-generation HBM4 technology, with initial samples shipped to customers for a potential launch in late 2026, indicating strong positioning in the AI-driven memory market [4] - In fiscal Q3, Micron reported revenue of $11.2 billion, exceeding prior guidance of $10.7 billion, with gross margins expanding to 44.5%, surpassing estimates of 42% [5] - The revenue growth is attributed to pricing strength rather than volume increases, reflecting favorable supply-demand dynamics and strong demand for high-performance memory solutions driven by AI applications [6][7]