Artificial intelligence stocks have pulled back, with this leader down 43% from its highs. Yet Wall Street sees a scenario where the stock more than doubles from here in an AI-fueled up-cycle.
Kevin Mahn believes we are in "batting practice of a double header" to the A.I. game. When it comes to Micron (MU), he says the chip maker's big forecast can thrust the company into a better position.
Micron (MU) shares moved higher in early trading Tuesday, gaining ground for the fourth straight session, ahead of the chipmaker's eagerly anticipated fiscal fourth-quarter earnings report, due after Wednesday's closing bell.
Rising investments in AI and the growing demand for AI hardware are likely to have aided MU's overall performance in the fourth quarter of fiscal 2024.
Micron Technology, Inc. MU will release earnings results for its fourth quarter, after the closing bell on Wednesday, Sept. 25.
These two semiconductor stocks have shown some weakness in recent weeks.
Micron: Load Up Before Earnings (Rating Upgrade)
Micron Technology, Inc.'s stock is downgraded to “hold” in my opinion due to Nvidia's Blackwell chip delays and concerns about cash flow and compressed margins. Despite strong AI demand, Micron's financial pressures and Nvidia's delays create uncertainty, making the upcoming earnings report crucial for the future outlook. In the long term, Micron is poised for growth with AI-driven demand for high-performance memory chips, but near-term risks and cyclical industry concerns remain.
Micron Technology Inc. (NASDAQ: MU) has experienced a nearly 40% decline since mid-June, despite being a key beneficiary of the artificial intelligence boom, which significantly improved its profits and revenues in 2024. Broader challenges, such as fears of an impending economic slowdown and potential trade restrictions with China, have weighed heavily on the semiconductor industry.
MU's Q4 earnings are likely to have benefited from strong demand for memory chips used for GPU-enabled AI servers and an improving demand-supply environment.
U.S. stocks settled higher on Friday, with the Dow Jones index settling at a record high during the session. The US Federal Reserve, on Wednesday, slashed interest rates by 50 basis points Wednesday at its September Federal Open Market Committee meeting, lowering the federal funds rate to a range of 4.75% to 5%.
Worries about PC and smartphone demand have pushed down the memory-chip maker's stock, offsetting an AI lift.