Alternatively, you can invest in a company like ASML Holding (ASML 1.53%), which benefits from the growth of AI, regardless of its application or end use case. Here's why ASML has the makings of a foundational growth stock for long-term investors to buy and hold for years to come. There are numerous ways to invest in artificial intelligence (AI), ranging from companies building and training AI models to organizations deploying AI to enhance existing processes. You can invest in companies that develop digita ...

Core Viewpoint - Micron Technology is experiencing significant growth driven by high demand for its chips in data centers, smartphones, and personal computers, leading to a 46% stock gain in 2023 [1] Financial Performance - In fiscal Q3, Micron's revenue increased by 37% year over year to $9.3 billion, with adjusted earnings more than tripling to $1.91 per share, surpassing Wall Street expectations [4] - The company has guided for $10.7 billion in revenue for fiscal Q4, representing a 38% increase compared to the previous year, and expects earnings of $2.50 per share, more than double the $1.18 per share from the same period last year [9] Market Drivers - The growth in Micron's data center revenue more than doubled year-over-year, driven by demand for high-bandwidth memory (HBM) chips integrated with AI accelerators from companies like Nvidia and AMD [5] - The average price of dynamic random access memory (DRAM) chips increased by 3% to 8% in Q2 due to strong HBM demand and improved sales of mobile and consumer-oriented DRAM chips [10] Product Development - Micron is focused on enhancing its HBM chips, with next-generation HBM4 chips expected to deliver 60% more performance while reducing power consumption by 20%, with volume production anticipated to start in 2026 [6][7] - The HBM market is projected to grow significantly, with estimates suggesting it could generate annual revenue of $130 billion by 2030, up from $4 billion in 2023 [7] Future Outlook - The adoption of AI-enabled PCs and smartphones is expected to contribute to Micron's growth in the upcoming quarters, indicating strong catalysts for continued performance [11] - Analysts predict a 54% increase in Micron's earnings for the next fiscal year to $12.05 per share, which could lead to a stock price of $265 if the current earnings multiple is maintained [14]

Muted PC and phone demand continues to weigh on memory chip pricing, prompting Bank of America Securities to maintain a Neutral rating on Micron Technology MU, even as the company posts blowout earnings and bullish guidance.Analyst Vivek Arya maintained Micron Technology with a Neutral and raised the price target from $84 to $140 on Thursday.Micron reported third-quarter revenue of $9.3 billion, up roughly 16%, topping the consensus estimate of $8.87 billion. The company reported third-quarter adjusted earn ...

Core Insights - Lam Research's memory segment, which includes both DRAM and NVM divisions, is experiencing significant growth, with revenues increasing nearly 24% year over year to $1.31 billion in Q3 FY25 [1][10]. Memory Segment Performance - The NVM division is seeing strong demand due to technology transitions to 256-layer NAND devices, with revenues growing approximately 21% year over year in the third quarter [2]. - The DRAM division's growth is driven by a shift towards high-bandwidth memory (HBM) and increased adoption of DDR5, resulting in a revenue increase of 26.7% year over year in Q3 [3][10]. Innovations and Future Outlook - Lam Research is investing in new technologies, including atomic layer deposition (ALD) innovations and upgrades for DDR5, LPDDR5, and HBM processes, which are gaining traction among customers [4]. - Despite trade restrictions with China, the company maintains consistent revenue growth, with Korea and Taiwan contributing 48% of revenues in Q3, while China accounted for 31% [5]. Competitive Landscape - Lam Research competes directly with Applied Materials and ASML Holdings in critical wafer fabrication stages, with both competitors also experiencing increased demand for their DRAM technologies [6][8]. - ASML's strong product demand is driven by its EUV systems, which are essential for leading-edge nodes, presenting stiff competition for Lam Research as it moves towards EUV lithography [7]. Financial Performance and Valuation - Lam Research's shares have gained 26.8% year to date, outperforming the Zacks Electronics – Semiconductors industry's growth of 6.5% [9]. - The company's forward price-to-earnings ratio stands at 22.99, below the industry's average of 26.82, indicating potential undervaluation [11]. - The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward by 7.2% to $4 per share, suggesting a year-over-year growth of 33.78% [12].

Micron Technology (MU -0.77%) is having a woeful April as shares of the memory specialist have dropped 20% so far this month, and the tariff-fueled turmoil has a lot to do with the stock's recent pullback. Reports suggest that Micron could increase the prices of its memory products amid the ongoing tariff war. That's because Micron has a global manufacturing footprint, including factories in the U.S., Japan, Taiwan, and China.However, semiconductors have been exempted from tariffs by both the U.S. and China ...