Gold Down Over 1%; Micron Technology Shares Fall After Q2 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2025
0mins
Should l Buy MU?
Source: Benzinga
U.S. Stock Market Performance: U.S. stocks declined with the Dow, Nasdaq, and S&P 500 all experiencing drops; notable movements included a 6% fall in Micron Technology shares despite reporting better-than-expected revenue and earnings.
Sector Movements and Global Markets: Communication services saw a slight increase while materials shares fell; European and Asian markets mostly closed lower, with Japan's Nikkei and China's Shanghai Composite both declining significantly.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 413.970
Low
235.00
Averages
336.12
High
500.00
Current: 413.970
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). CNBU segment includes memory products and solutions sold into the data center, PC, graphics, and networking markets. MBU segment includes memory and storage products sold into the smartphone and other mobile-device markets. EBU segment includes memory and storage products and solutions sold into the intelligent edge through the automotive, industrial, and consumer embedded markets. SBU segment includes SSDs and component-level storage solutions sold into the data center, PC, and consumer markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Micron Technology Emerges as AI Market Leader
- Market Leadership: Micron Technology is focusing on memory hardware for AI by exiting the consumer PC market, with RAM prices expected to rise by 50% in Q1 2026, highlighting strong demand driven by AI.
- Significant Financial Growth: In Q1 of fiscal 2026, Micron's revenue surged 57% year-over-year to $13.6 billion, with 79% of that revenue coming from DRAM, indicating that AI demand is driving its primary growth.
- Massive Investment: Micron has broken ground on a $100 billion semiconductor factory in upstate New York, expected to create over 9,000 jobs and become the largest semiconductor factory in the U.S., further solidifying its market position.
- Strong Profitability: Micron boasts a gross margin of 56.8%, an operating margin of 32.5%, and a net margin of 28.15%, making it an attractive investment at a forward P/E ratio of 10.57 in the AI hardware market.
See More
Micron Technology Shares Surge 314% Amid AI Demand
- Stock Surge: As of February 13, Micron Technology (MU) shares have soared 314% over the past year, reflecting strong market confidence in its growth potential, particularly amid surging AI demand.
- Profitability Metrics: Micron's trailing P/E ratio stands at 39, which, while relatively high, remains within a reasonable range for fast-growing tech stocks, indicating investor expectations for future profitability.
- Future Earnings Outlook: With a forward P/E ratio of just 12, significantly lower than Nvidia's 24, Micron presents a more attractive valuation for projected income, potentially drawing more investor interest.
- Strong Financial Performance: Micron reported a net income of $5.2 billion in Q1 of its 2026 fiscal year, nearly tripling last year's figures, and has already sold out its memory capacity for 2026, signaling robust earnings growth ahead.
See More
AI Infrastructure Drives Semiconductor Industry Growth
- Surging Market Demand: Five companies are projected to spend a staggering $700 billion on AI data centers this year, driving rapid growth in the semiconductor industry, particularly benefiting firms like Nvidia and Broadcom.
- Nvidia's Market Dominance: With approximately 90% market share in graphics processing units (GPUs), Nvidia's CUDA software platform provides robust support for AI training, which is expected to further boost its revenue growth.
- Broadcom's Custom Chip Advantage: Broadcom is assisting customers in developing custom AI application-specific integrated circuits (ASICs), which, while less flexible than GPUs, offer advantages in energy efficiency and cost-effectiveness, likely leading to rapid market share growth.
- Micron's DRAM Shortage Opportunity: As demand for high-bandwidth memory (HBM) surges, Micron, as one of the major DRAM manufacturers, is set to benefit from an ongoing supercycle, significantly enhancing its revenue and gross margins.
See More
Market Turmoil in AI Sector and Stock Reactions
- Market Turmoil: On January 27, 2025, Chinese startup DeepSeek's AI model caused a market shock, leading Nvidia's stock to lose nearly $600 billion in market cap in a single day, plummeting from $143 to below $90, highlighting the market's sensitivity to AI technology.
- Stock Decline: Following the DeepSeek incident, Nvidia's stock continued to decline until April 2025, reflecting investor concerns over U.S.-China trade tensions and revealing the intense competition in the AI technology sector.
- Industry Impact: Dassault's stock fell 10% due to uncertainty over its partnership with Schindler, while Siemens dropped 6.4%, indicating the potential risks associated with reliance on digital twin technology for infrastructure companies.
- Supply-Demand Imbalance: Memory prices surged by 600% over the year, and Cisco's warning about DRAM shortages impacting earnings further exacerbated concerns for Nvidia and similar companies, potentially leading to demand destruction and suppressed sales.
See More
Investment Opportunities in Hardware Stocks for the AI Revolution
- Data Center Infrastructure: Analyst Michael Del Monte recommends IESC and Vertiv as key investments in data center infrastructure, with IESC focusing on custom design of electrical and technology systems, while Vertiv provides integrated rack solutions and power management software, expected to benefit from rising AI demand.
- Memory and Bandwidth Bottlenecks: Kennedy Njagi highlights Micron Technology as crucial for AI training and inference workloads due to memory barriers limiting performance, and as supply tightens, Micron's market performance is set to significantly improve, making it a focal point for investors.
- Low-Risk Investment: Elizabeth Pramila views Apple's third-party strategy in AI hardware as reducing investment risks, particularly with its partnership with Alphabet for the Gemini rollout, indicating Apple's potential in AI adoption without the need for large capital expenditures.
- Long-Term Investment Opportunities: Analysts emphasize that true long-term investment opportunities lie with companies that not only manufacture AI hardware but also possess extensive delivery ecosystems, such as Apple, Amazon, and Alphabet, which can drive growth in AI capabilities through their devices and cloud infrastructure.
See More
Micron Technology's Significant Growth Potential Ahead
- Surging Market Demand: RAM prices are expected to rise by 50% by the end of Q1 2026 compared to Q4 2025, directly boosting Micron Technology's revenue growth, particularly in light of the surging demand in the AI sector.
- Impressive Financial Performance: Micron reported $13.6 billion in revenue for Q1 of fiscal 2026, a 57% year-over-year increase, with DRAM accounting for 79% of that revenue, highlighting its strong growth potential in the AI memory market.
- Strategic Investment Initiatives: The $100 billion semiconductor factory being built in upstate New York will become the largest semiconductor facility in the U.S., further solidifying Micron's leadership position in the global memory market and addressing future memory shortages.
- Optimistic Stock Price Forecast: Based on its current P/E ratio of 39.31 and projected EPS for fiscal 2026, analysts predict Micron's stock price could exceed $1,200 by August 2026, indicating significant investment value in its shares.
See More
Micron Technology Emerges as AI Market Leader
- Market Leadership: Micron Technology is focusing on memory hardware for AI by exiting the consumer PC market, with RAM prices expected to rise by 50% in Q1 2026, highlighting strong demand driven by AI.
- Significant Financial Growth: In Q1 of fiscal 2026, Micron's revenue surged 57% year-over-year to $13.6 billion, with 79% of that revenue coming from DRAM, indicating that AI demand is driving its primary growth.
- Massive Investment: Micron has broken ground on a $100 billion semiconductor factory in upstate New York, expected to create over 9,000 jobs and become the largest semiconductor factory in the U.S., further solidifying its market position.
- Strong Profitability: Micron boasts a gross margin of 56.8%, an operating margin of 32.5%, and a net margin of 28.15%, making it an attractive investment at a forward P/E ratio of 10.57 in the AI hardware market.
See More
Micron Technology Shares Surge 314% Amid AI Demand
- Stock Surge: As of February 13, Micron Technology (MU) shares have soared 314% over the past year, reflecting strong market confidence in its growth potential, particularly amid surging AI demand.
- Profitability Metrics: Micron's trailing P/E ratio stands at 39, which, while relatively high, remains within a reasonable range for fast-growing tech stocks, indicating investor expectations for future profitability.
- Future Earnings Outlook: With a forward P/E ratio of just 12, significantly lower than Nvidia's 24, Micron presents a more attractive valuation for projected income, potentially drawing more investor interest.
- Strong Financial Performance: Micron reported a net income of $5.2 billion in Q1 of its 2026 fiscal year, nearly tripling last year's figures, and has already sold out its memory capacity for 2026, signaling robust earnings growth ahead.
See More
AI Infrastructure Drives Semiconductor Industry Growth
- Surging Market Demand: Five companies are projected to spend a staggering $700 billion on AI data centers this year, driving rapid growth in the semiconductor industry, particularly benefiting firms like Nvidia and Broadcom.
- Nvidia's Market Dominance: With approximately 90% market share in graphics processing units (GPUs), Nvidia's CUDA software platform provides robust support for AI training, which is expected to further boost its revenue growth.
- Broadcom's Custom Chip Advantage: Broadcom is assisting customers in developing custom AI application-specific integrated circuits (ASICs), which, while less flexible than GPUs, offer advantages in energy efficiency and cost-effectiveness, likely leading to rapid market share growth.
- Micron's DRAM Shortage Opportunity: As demand for high-bandwidth memory (HBM) surges, Micron, as one of the major DRAM manufacturers, is set to benefit from an ongoing supercycle, significantly enhancing its revenue and gross margins.
See More
Market Turmoil in AI Sector and Stock Reactions
- Market Turmoil: On January 27, 2025, Chinese startup DeepSeek's AI model caused a market shock, leading Nvidia's stock to lose nearly $600 billion in market cap in a single day, plummeting from $143 to below $90, highlighting the market's sensitivity to AI technology.
- Stock Decline: Following the DeepSeek incident, Nvidia's stock continued to decline until April 2025, reflecting investor concerns over U.S.-China trade tensions and revealing the intense competition in the AI technology sector.
- Industry Impact: Dassault's stock fell 10% due to uncertainty over its partnership with Schindler, while Siemens dropped 6.4%, indicating the potential risks associated with reliance on digital twin technology for infrastructure companies.
- Supply-Demand Imbalance: Memory prices surged by 600% over the year, and Cisco's warning about DRAM shortages impacting earnings further exacerbated concerns for Nvidia and similar companies, potentially leading to demand destruction and suppressed sales.
See More
Investment Opportunities in Hardware Stocks for the AI Revolution
- Data Center Infrastructure: Analyst Michael Del Monte recommends IESC and Vertiv as key investments in data center infrastructure, with IESC focusing on custom design of electrical and technology systems, while Vertiv provides integrated rack solutions and power management software, expected to benefit from rising AI demand.
- Memory and Bandwidth Bottlenecks: Kennedy Njagi highlights Micron Technology as crucial for AI training and inference workloads due to memory barriers limiting performance, and as supply tightens, Micron's market performance is set to significantly improve, making it a focal point for investors.
- Low-Risk Investment: Elizabeth Pramila views Apple's third-party strategy in AI hardware as reducing investment risks, particularly with its partnership with Alphabet for the Gemini rollout, indicating Apple's potential in AI adoption without the need for large capital expenditures.
- Long-Term Investment Opportunities: Analysts emphasize that true long-term investment opportunities lie with companies that not only manufacture AI hardware but also possess extensive delivery ecosystems, such as Apple, Amazon, and Alphabet, which can drive growth in AI capabilities through their devices and cloud infrastructure.
See More
Micron Technology's Significant Growth Potential Ahead
- Surging Market Demand: RAM prices are expected to rise by 50% by the end of Q1 2026 compared to Q4 2025, directly boosting Micron Technology's revenue growth, particularly in light of the surging demand in the AI sector.
- Impressive Financial Performance: Micron reported $13.6 billion in revenue for Q1 of fiscal 2026, a 57% year-over-year increase, with DRAM accounting for 79% of that revenue, highlighting its strong growth potential in the AI memory market.
- Strategic Investment Initiatives: The $100 billion semiconductor factory being built in upstate New York will become the largest semiconductor facility in the U.S., further solidifying Micron's leadership position in the global memory market and addressing future memory shortages.
- Optimistic Stock Price Forecast: Based on its current P/E ratio of 39.31 and projected EPS for fiscal 2026, analysts predict Micron's stock price could exceed $1,200 by August 2026, indicating significant investment value in its shares.
See More
