From Nasdaq: 2024-07-09 07:21:00

Micron Technology’s stock has surged over 160% in 2023, signaling the end of the semiconductor bear market. AI chip demand is up, with Micron’s financials showing solid performance. Revenue increased by 82% to $6.8 billion, with a positive outlook expected for fiscal 2025.

Micron’s HBM3e memory product is in high demand, particularly for AI chip systems like Nvidia’s. Manufacturing capacity for HBM products is booked through 2025, indicating ongoing growth in AI infrastructure spending. The AI chip stock race is set to continue with Micron’s positive update.

While Micron and Nvidia stocks may seem expensive, the growth cycle and demand for memory chips remain strong. Prudence in investing in cyclical growth stocks is advised, but Micron’s latest update gives a green flag for continued growth in the AI chip industry. The stock trades at 14 times Wall Street analysts’ consensus expectation for EPS.

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Read more at Nasdaq: Micron Just Gave Another Green Flag for the AI Stock Race