Positive: Micron Technology has more upside potential with growing HBM demand and better valuation metrics.

From Zacks Investment Research: 2025-07-03 13:02:00

In Q2 FY25, Micron Technology’s HBM revenue exceeded $1B, driven by AI and data center demand. AMD’s 2025 EPS estimate rose 12.1% to $7.77, signaling 497.69% year-over-year growth, with Data Center revenues up 57.2% in Q1 2025. The semiconductor industry is projected to grow to $958.93 billion by 2030, benefiting from strong AI and data center technology demand. AMD is thriving in the data center market with EPYC processors and Instinct GPU sales, while Micron Technology is seeing growth in AI-driven memory solutions like HBM chips. MU’s expanding portfolio includes HBM4 36GB 12-high memory samples for AI data centers. Price performance shows AMD and MU shares appreciated 14.6% and 44.6% YTD. Valuation-wise, AMD and MU shares are considered overvalued. Earnings estimates for 2025 show AMD at $3.92 per share and MU at $7.77 per share, with AMD beating estimates in the past four quarters by an average of 2.30% and MU by 9.70%. While both companies benefit from the AI-driven semiconductor boom, MU has more upside potential due to earnings growth, expanding HBM demand, and better valuation metrics. AMD faces stiff competition, particularly from NVIDIA. MU is rated a Zacks Rank #2 (Buy), making it a stronger pick than AMD, which has a Zacks Rank #3 (Hold).



Read more at Zacks Investment Research: AMD vs. Micron Technology: Which Semiconductor Stock Has More Upside? – July 3, 2025