Last summer, the workstation I use for writing these articles felt sluggish. You know how it goes, right? I'm using the same web browsers and word processor as always, but every page comes with a dozen traffic trackers and a bunch of ads that weren't there five years ago, when I last upgraded my computer memory. It was time for a couple of new memory sticks in my Frankenbox with parts acquired and upgraded in waves between 2010 and 2022. Image source: Getty Images. Will AI create the world's first trillio ...

Key Points AI-driven demand for memory chips pushed Micron's quarterly revenue up 56.6% year over year. The memory-chip market is notoriously cyclical, but AI demand may break the boom-bust pattern. Micron's stock looks like a bargain compared to AI darlings like Nvidia, AMD, and Palantir. These 10 stocks could mint the next wave of millionaires › Shares of Micron Technology (NASDAQ: MU) rose 20.7% in December 2025, according to data from S&P Global Market Intelligence. After this boost, Micron ...

Market Performance - The Dow Jones Industrial Average rose 0.7% in December, marking its eighth consecutive winning month, the longest streak since 2018 [1] - The S&P 500 slipped about 0.06% for the month, while the Nasdaq Composite finished down about 1% [1] - The final five trading sessions of December were downbeat, with the Nasdaq losing 1.6%, the S&P 500 retreating 1.3%, and the Dow Jones falling 1.4% [2] Seasonal Trends - Historically, stocks tend to rise during the final five trading days of the year and the first two sessions of the new year, a pattern now under threat [3] S&P 500 Performance - The S&P 500 rallied 24% in 2023, 23% in 2024, and 16% in 2025, resulting in an almost 80% gain over three years, marking the strongest return over a three-year win streak since 2019-2021 [4] - The S&P 500 has not posted four consecutive annual gains since the five-year run from 2003 to 2007 [5] Economic Indicators - The Federal Reserve has issued hawkish guidance for 2026, with a cooling U.S. labor market and persistent inflation [5] - Developed-market central banks are unlikely to cut rates at the beginning of 2026 [5] Sector Highlights - Overvaluation and payoff concerns are prevalent in the artificial intelligence sector, which has driven the market over the past three years [6] Notable ETFs and Stocks - Defiance Daily Target 2X Long RKLB ETF (RKLX) rose 115.4%, with Rocket Lab Corp (RKLB) gaining about 73% in December due to increased investor interest in the space economy [7] - ProShares Ultra Silver (AGQ) increased by 44.5%, driven by strong industrial demand and tight supply dynamics [8] - AST SpaceMobile Inc (ASTS) stock gained 27.7% in December, benefiting from the space investing boom [11] - Micron Technology Inc (MU) stock rose 19.2% after reporting better-than-expected fiscal results [12] - Coinbase Global Inc (COIN) shares fell 14.1% due to increased regulatory scrutiny and skepticism towards stablecoin revenue [13] Currency Impact - The U.S. dollar slumped about 4.2% in December, which is favorable for commodity prices as they are priced in U.S. dollars [10]

Core Insights - Micron's fourth quarter results exceeded Wall Street expectations, reporting adjusted earnings per share of $3.30 and revenue of $11.32 billion, which is higher than the anticipated $11.15 billion [1][3][15] - The company provided an optimistic outlook for the upcoming first quarter, projecting revenue of $12.5 billion and earnings per share guidance of $3.75, surpassing market expectations [3][15] - The strong performance is attributed to the growing demand for AI-related products, particularly high bandwidth memory (HBM) chips, which are essential for AI data centers [4][9][15] Financial Performance - Micron's revenue increased by 46% year-over-year, indicating robust growth [15] - The company has experienced six consecutive quarters of profit growth, driven by demand for DRAM chips during the pandemic and ongoing AI trends [11][15] - The stock reacted positively to the earnings report, initially rising by about 3% [1] Market Position and Competitive Landscape - Micron is positioned as a key player in the AI market by producing complementary memory chips that support GPU operations, particularly those from Nvidia [9][10] - The company is competing in the high bandwidth memory space against major players like Samsung and SK Hynix, with a focus on innovative architecture and cost efficiency [20][21] - Despite the positive outlook, there are concerns about the maturity of the mobile phone and PC markets, which could limit growth in those areas [18][21] Future Outlook - The demand for high bandwidth memory is expected to continue growing, particularly as AI applications expand [19] - Micron's ability to adapt and innovate in the memory chip sector is crucial for maintaining its competitive edge [20][21] - The overall semiconductor market is cyclical, and while Micron has benefited from current trends, future demand will depend on broader market conditions [10][11]

Group 1: Market Overview - Stocks closed lower, retreating from record levels, indicating a shift in market sentiment [1] - The Federal Reserve's recent rate cuts have influenced market dynamics, leading to a slight rally in the bond market [3][4] - Increased retail participation in meme stocks and unprofitable tech stocks reflects a similar energy to the post-COVID environment [5][6] Group 2: Micron's Performance - Micron reported fourth-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $3.30 and revenue of $11.32 billion [24][26] - The company provided an optimistic outlook for the upcoming first quarter, guiding for revenue of $12.5 billion and EPS of $3.75, surpassing analyst expectations [26][27] - Micron's growth is closely tied to the AI sector, particularly through its production of high bandwidth memory (HBM) chips that complement Nvidia's GPU chips [30][32] Group 3: Federal Reserve's Mandates - The Federal Reserve has a dual mandate of maximum employment and stable prices, with a third mandate of moderate long-term interest rates recently highlighted [39][40] - Long-term interest rates impact borrowing costs for consumers and businesses, as well as federal budget implications [46][47] - The Fed's approach to managing these rates is crucial, as surging long-term rates could tighten financial conditions despite short-term rate cuts [49]

Core Viewpoint - Micron Technology reported strong fiscal Q2 2025 earnings, with significant year-over-year growth in both earnings per share and revenues, driven by high demand for its high bandwidth memory products [1][2]. Financial Performance - Earnings per share for Q2 fiscal 2025 were $1.56, exceeding the Zacks Consensus Estimate by 9.1% and up 271% from the previous year's earnings of $0.42 [1] - Revenues increased by 38.3% year over year to $8.05 billion, surpassing the Zacks Consensus Estimate by 1.97% [2] - Non-GAAP gross profit reached $3.05 billion, a significant increase from $1.16 billion in the year-ago quarter, although it declined 11.3% sequentially [7] - Non-GAAP gross margin improved to 37.9% from 20% year over year but decreased from 39.5% in the previous quarter [7][9] Revenue Breakdown - DRAM revenues were $6.1 billion, accounting for 76% of total revenues, up 47.3% year over year but down 4.3% sequentially [4] - NAND revenues totaled $1.86 billion, representing 23% of total revenues, up 18.4% year over year but down 17.2% quarter over quarter [4] - Revenues from the Compute and Networking Business Unit soared 109% year over year to $4.56 billion [5] - Mobile Business Unit revenues declined 33% year over year to $1.07 billion due to customer inventory adjustments [6] Cash Flow and Balance Sheet - The company ended the quarter with cash and investments of $8.22 billion, up from $7.58 billion in the prior quarter [10] - Operating cash flow for the quarter was $3.94 billion, with capital expenditures of $3.09 billion, resulting in adjusted free cash flow of $857 million [11] Future Outlook - Micron anticipates Q3 fiscal 2025 revenues of $8.80 billion (+/- $200 million), above the Zacks Consensus Estimate of $8.47 billion [12] - Projected non-GAAP gross margin for Q3 is 36.5% (+/- 100 basis points) [12] - Adjusted EPS for Q3 is expected to be $1.57 (+/- 10 cents), contrasting with a consensus loss estimate of $1.48 per share [13]