Micron Technology closed at $778.31 on Friday, down 2.52%, but gained 12.8% for the week, recovering from $690 on November 6. The same stock had plunged 17.5% in a single day on November 5, closing at $656.39. It’s down more than 18% over the past month and still nearly 40% below its 52-week high of $1,255. It’s been a full roller-coaster ride, yet it’s still up 173% year to date. The more it climbs, the harder it can fall.
The earnings were actually very strong: revenue last quarter was $54.23 billion, beating expectations of $51.07 billion; adjusted earnings per share were $33.42, ahead of the $31.61 expected; gross margin was 86.8%, and full-year revenue was $133.19 billion. On Wall Street, 28 analysts rate the stock Buy and one rates it Hold. The average price target is $1,624, about 109% above the current price, while Bernstein and Citi have both set targets of $1,300.
The disagreement isn’t about the past, but whether the profits can last. A surge in memory prices has pushed gross margin to 86.8%. The market fears that price increases won’t prove sustainable—and, even more, that if Nvidia’s earnings report on Tuesday causes a wobble, high-bandwidth memory orders could wobble too. High-bandwidth memory is fast memory stacked alongside AI chips, and Nvidia is Micron Technology’s largest customer.
Keep an eye on two things: Nvidia’s third-quarter results on Tuesday, with the market expecting revenue of about $109.2 billion; if results beat expectations, the memory supply chain can breathe easier. Then there’s Micron Technology’s own guidance for next quarter: revenue of $61.5 billion and earnings per share of $38.15. Its earnings report, due around December 16, will provide another test. The levels to watch are $885 above and $690 below. The $690 level will only hold if the company delivers on its earnings.
The price-hike story is over; the next chapter depends on orders continuing to come in.#美光科技 #Memory chips
$MU $NVDA $QQQ
The earnings were actually very strong: revenue last quarter was $54.23 billion, beating expectations of $51.07 billion; adjusted earnings per share were $33.42, ahead of the $31.61 expected; gross margin was 86.8%, and full-year revenue was $133.19 billion. On Wall Street, 28 analysts rate the stock Buy and one rates it Hold. The average price target is $1,624, about 109% above the current price, while Bernstein and Citi have both set targets of $1,300.
The disagreement isn’t about the past, but whether the profits can last. A surge in memory prices has pushed gross margin to 86.8%. The market fears that price increases won’t prove sustainable—and, even more, that if Nvidia’s earnings report on Tuesday causes a wobble, high-bandwidth memory orders could wobble too. High-bandwidth memory is fast memory stacked alongside AI chips, and Nvidia is Micron Technology’s largest customer.
Keep an eye on two things: Nvidia’s third-quarter results on Tuesday, with the market expecting revenue of about $109.2 billion; if results beat expectations, the memory supply chain can breathe easier. Then there’s Micron Technology’s own guidance for next quarter: revenue of $61.5 billion and earnings per share of $38.15. Its earnings report, due around December 16, will provide another test. The levels to watch are $885 above and $690 below. The $690 level will only hold if the company delivers on its earnings.
The price-hike story is over; the next chapter depends on orders continuing to come in.#美光科技 #Memory chips
$MU $NVDA $QQQ