Micron's Q1 FY 2025 earnings report revealed Q2 guidance below analysts' forecasts, leading to a significant stock drop. Inventory build-up by PC and smartphone manufacturers impacted Micron's near-term revenue and earnings. Management forecasts robust revenue growth and improved profitability in the second half of FY 2025, presenting a buying opportunity.
Nvidia has dominated the AI narrative in the stock market, captivating investors and the media after soaring 2,190% over the past five years and becoming the most valuable company in the world for a brief period (it's currently No. 2).
Micron (MU 3.48%) disappointed stock market investors with the latest quarterly update.
Micron (MU 3.48%) forecasted lower revenue for the next quarter, disappointing stock market investors.
In today's video, I discuss recent updates affecting Micron Technology (MU 3.48%). To learn more, check out the short video, consider subscribing, and click the special offer link below.
MU's double beat FQ1'25 performance has been temporarily negated by the lumpy FQ2'25 guidance, with it signaling mixed near-term prospects. Even so, we believe that the market has over-reacted, since NVDA's Blackwell has only started to ramp up in production and peak shipments likely in Q2'25. MU continues to highlight its sold out position in 2025 as well, with robust 2026 prospects as HBM4's ramp in high volume production then.
Memory chip manufacturer Micron (MU 3.48%) threw investors for a loop on Thursday with a quarterly report that featured an outlook that wasn't even in the ballpark of Wall Street's expectations.
The semiconductor industry is the beating heart of the artificial intelligence (AI) revolution. Most investors are focused on Nvidia (NVDA 3.08%) -- and rightly so, because it makes the best data center chips for developing AI -- but it isn't the only semiconductor company cashing in on this technology boom.
Analysts have an optimistic outlook on the semiconductor industry heading into 2025. Broadcom, Marvell Inc and Synopsys Inc are JPMorgan's top picks for the sector.
Micron Technology, Inc. enjoys a leading position in cutting-edge AI memory technology with exposure to data center megatrends. The 17% share price decline opens an investment opportunity in an already undervalued company. Weak personal computer demand and inventory adjustments weigh on short-term outlook, but such fluctuations are typical in the industry.
Micron Technology just reported its 1QFY25 earnings results and outlook, causing the stock to slide 16% lower for the day; we're upgrading the stock to a strong buy. We think the slower end demand rebound and industry oversupply are now priced into the stock and outlook, resetting expectations and making MU better positioned to outperform. We think MU will benefit from share gain in the HBM market as well as PC TAM expansion towards 2H25.