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-on roller coaster, yet it’s still up 173% year to date: the more it climbs, the harder it falls.
The earnings were actually very strong: quarterly revenue of $54.23 billion, beating expectations of $51.07 billion; adjusted EPS of $33.42, above the expected $31.61; a gross margin of 86.8%; and full-year revenue of $133.19 billion. On Wall Street, 28 analysts rate it a Buy and 1 a Hold. The average price target is $1,624, about 109% above the current price, while Bernstein and Citi both have targets of $1,300.
The disagreement isn’t about the past, but whether the profits can be sustained. The memory price rally pushed gross margin to 86.8%. The market fears that price increases won’t last—and, even more, that if Nvidia’s earnings report on Tuesday wobbles, high-bandwidth memory orders will wobble too. High-bandwidth memory is high-speed memory stacked alongside AI chips, and Nvidia is Micron Technology’s largest customer.
Watch two things: Nvidia’s third-quarter results on Tuesday, with the market expecting revenue of around $109.2 billion. If results beat expectations, the memory supply chain can breathe a sigh of relief. Micron Technology’s own guidance for next quarter is revenue of $61.5 billion and EPS of $38.15; its earnings report, due around December 16, will be another test. $885 is the level above and $690 the level below. Only if earnings deliver can $690 hold.
The price-hike story is over; the next chapter needs orders to keep coming in. #美光科技 #Memory chips
$MU $NVDA $QQQ
The earnings were actually very strong: quarterly revenue of $54.23 billion, beating expectations of $51.07 billion; adjusted EPS of $33.42, above the expected $31.61; a gross margin of 86.8%; and full-year revenue of $133.19 billion. On Wall Street, 28 analysts rate it a Buy and 1 a Hold. The average price target is $1,624, about 109% above the current price, while Bernstein and Citi both have targets of $1,300.
The disagreement isn’t about the past, but whether the profits can be sustained. The memory price rally pushed gross margin to 86.8%. The market fears that price increases won’t last—and, even more, that if Nvidia’s earnings report on Tuesday wobbles, high-bandwidth memory orders will wobble too. High-bandwidth memory is high-speed memory stacked alongside AI chips, and Nvidia is Micron Technology’s largest customer.
Watch two things: Nvidia’s third-quarter results on Tuesday, with the market expecting revenue of around $109.2 billion. If results beat expectations, the memory supply chain can breathe a sigh of relief. Micron Technology’s own guidance for next quarter is revenue of $61.5 billion and EPS of $38.15; its earnings report, due around December 16, will be another test. $885 is the level above and $690 the level below. Only if earnings deliver can $690 hold.
The price-hike story is over; the next chapter needs orders to keep coming in. #美光科技 #Memory chips
$MU $NVDA $QQQ