Samsung Shares Climb Following Report of Upcoming MBM Chips, Significance for Micron.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Should l Buy MU?
Source: Barron's
- Samsung's Stock Performance: Samsung Electronics' stock rose on Monday due to news of upcoming large-scale production of next-generation high-bandwidth memory chips.
- Competition with Micron: This production initiative poses a competitive challenge to American rival Micron Technology.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 382.890
Low
235.00
Averages
336.12
High
500.00
Current: 382.890
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.
Samsung Electronics Accelerates AI Memory Chip Development
- Intensifying Market Competition: As the sixth-generation high-bandwidth memory (HBM4) supply battle intensifies, Samsung Electronics and SK Hynix emerge as the main competitors, with SK Hynix expected to capture 70% of the market share and Samsung around 30%, impacting the future supply chain dynamics for AI chips.
- Micron Exits Competition: Micron's market share for HBM4 has been reduced to zero due to its inability to meet Nvidia's stringent requirement for data transfer speeds exceeding 11Gbps, further solidifying Samsung and SK Hynix's dominance in the market.
- Mass Production Readiness: Samsung plans to begin shipping HBM4 chips to Nvidia as early as the third week of February, marking its readiness for mass production in AI infrastructure, which will support Nvidia's upcoming Vera Rubin AI accelerators and narrow the gap with SK Hynix.
- Investor Optimism: With data center spending projected to reach $650 billion, investor sentiment around AI-linked U.S. tech stocks has surged, as evidenced by Nvidia's nearly 8% stock price increase on Friday, reflecting strong market confidence in AI technologies.
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- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Samsung Nears Approval for AI Memory Chip Shipments
- AI Memory Chip Progress: Samsung is close to securing Nvidia's certification for its latest AI memory chip, HBM4, with shipments to Nvidia and AMD expected next month, thereby addressing the growing demand for memory chips and enhancing the company's position in the competitive semiconductor market.
- Market Rebound: Tech stocks and the broader market rebounded on Friday, with Nvidia shares rising nearly 8%, reflecting investor confidence in the recovery of the chip industry, although Nvidia's stock remains down 11% from its peak on November 3, indicating market volatility.
- Supply-Demand Dynamics: The ongoing shortage of memory chips has driven up shares of chipmakers like Micron, SanDisk, and Western Digital, as investors anticipate robust demand and rising prices, providing a favorable backdrop for Samsung's market performance.
- Regulatory Challenges: Nvidia is awaiting approval for the sale of its H200 chips in China; while Beijing is close to approving imports, the U.S. is considering additional restrictions, and this complex diplomatic situation may impact Nvidia's market performance and stock price fluctuations.
See More
Samsung Shares Climb Following Report of Upcoming MBM Chips, Significance for Micron.
- Samsung's Stock Performance: Samsung Electronics' stock rose on Monday due to news of upcoming large-scale production of next-generation high-bandwidth memory chips.
- Competition with Micron: This production initiative poses a competitive challenge to American rival Micron Technology.
See More
Micron Technology Emerges as Wall Street's New AI Chip Favorite
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR, reaching $604 billion by 2033, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron dominates in high-bandwidth memory (HBM), dynamic random access memory (DRAM), and NAND chips, with forecasts indicating the memory market could grow to $100 billion by 2028, highlighting the accelerating demand for memory chips.
- Capital Expenditure Driving Price Increases: With big tech expected to spend over $500 billion on AI infrastructure, shortages in HBM solutions are anticipated, with TrendForce research suggesting DRAM and NAND prices could soar by 60% and 38%, respectively, in Q1 alone.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this indicates strong investment potential for Micron stock.
See More
Micron Technology: The New Favorite AI Chip Stock
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating that demand for memory chips is accelerating at a pace far exceeding that of the GPU market.
- Rising Prices Driven by Capex: With hyperscalers' capital expenditure budgets increasing, big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in HBM solutions, with DRAM and NAND prices potentially soaring by 60% and 38% respectively in Q1.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this suggests strong investment value, positioning Micron as a potential
See More
Samsung Electronics Accelerates AI Memory Chip Development
- Intensifying Market Competition: As the sixth-generation high-bandwidth memory (HBM4) supply battle intensifies, Samsung Electronics and SK Hynix emerge as the main competitors, with SK Hynix expected to capture 70% of the market share and Samsung around 30%, impacting the future supply chain dynamics for AI chips.
- Micron Exits Competition: Micron's market share for HBM4 has been reduced to zero due to its inability to meet Nvidia's stringent requirement for data transfer speeds exceeding 11Gbps, further solidifying Samsung and SK Hynix's dominance in the market.
- Mass Production Readiness: Samsung plans to begin shipping HBM4 chips to Nvidia as early as the third week of February, marking its readiness for mass production in AI infrastructure, which will support Nvidia's upcoming Vera Rubin AI accelerators and narrow the gap with SK Hynix.
- Investor Optimism: With data center spending projected to reach $650 billion, investor sentiment around AI-linked U.S. tech stocks has surged, as evidenced by Nvidia's nearly 8% stock price increase on Friday, reflecting strong market confidence in AI technologies.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Samsung Nears Approval for AI Memory Chip Shipments
- AI Memory Chip Progress: Samsung is close to securing Nvidia's certification for its latest AI memory chip, HBM4, with shipments to Nvidia and AMD expected next month, thereby addressing the growing demand for memory chips and enhancing the company's position in the competitive semiconductor market.
- Market Rebound: Tech stocks and the broader market rebounded on Friday, with Nvidia shares rising nearly 8%, reflecting investor confidence in the recovery of the chip industry, although Nvidia's stock remains down 11% from its peak on November 3, indicating market volatility.
- Supply-Demand Dynamics: The ongoing shortage of memory chips has driven up shares of chipmakers like Micron, SanDisk, and Western Digital, as investors anticipate robust demand and rising prices, providing a favorable backdrop for Samsung's market performance.
- Regulatory Challenges: Nvidia is awaiting approval for the sale of its H200 chips in China; while Beijing is close to approving imports, the U.S. is considering additional restrictions, and this complex diplomatic situation may impact Nvidia's market performance and stock price fluctuations.
See More
Samsung Shares Climb Following Report of Upcoming MBM Chips, Significance for Micron.
- Samsung's Stock Performance: Samsung Electronics' stock rose on Monday due to news of upcoming large-scale production of next-generation high-bandwidth memory chips.
- Competition with Micron: This production initiative poses a competitive challenge to American rival Micron Technology.
See More
Micron Technology Emerges as Wall Street's New AI Chip Favorite
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR, reaching $604 billion by 2033, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron dominates in high-bandwidth memory (HBM), dynamic random access memory (DRAM), and NAND chips, with forecasts indicating the memory market could grow to $100 billion by 2028, highlighting the accelerating demand for memory chips.
- Capital Expenditure Driving Price Increases: With big tech expected to spend over $500 billion on AI infrastructure, shortages in HBM solutions are anticipated, with TrendForce research suggesting DRAM and NAND prices could soar by 60% and 38%, respectively, in Q1 alone.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this indicates strong investment potential for Micron stock.
See More
Micron Technology: The New Favorite AI Chip Stock
- Massive Market Potential: According to Bloomberg Intelligence, the total addressable market for AI accelerators is expected to grow at a 16% CAGR through 2033, reaching $604 billion, providing strong market support for Micron Technology.
- Surging Memory Demand: Micron's management forecasts the memory market will grow from $35 billion in 2025 to $100 billion by 2028, indicating that demand for memory chips is accelerating at a pace far exceeding that of the GPU market.
- Rising Prices Driven by Capex: With hyperscalers' capital expenditure budgets increasing, big tech is expected to spend over $500 billion on AI infrastructure this year, leading to shortages in HBM solutions, with DRAM and NAND prices potentially soaring by 60% and 38% respectively in Q1.
- Attractive Valuation: Micron currently trades at a forward P/E ratio of 12, significantly lower than other leaders in the AI chip market, and combined with the multi-year supercycle for HBM chips, this suggests strong investment value, positioning Micron as a potential
See More
