Micron Technology’s shares are surging, fueled by a strong first-quarter earnings report. The company delivered record revenue of $13.6 billion and beat analyst forecasts for adjusted earnings. This is good news for the AI trade, with demand for High-Bandwidth Memory (HBM) chips driving growth.
The surge in Micron’s stock price validates that the AI infrastructure buildout is accelerating. The company’s CEO has updated its forecast for the HBM market, predicting it will reach $100 billion by 2028 two years earlier than previously thought. This is driven by increased demand from well-capitalized hyperscalers expanding their data centers.
Micron’s forward-looking guidance has alleviated concerns about a potential AI bubble. The company forecasts revenue of $18.7 billion for the current quarter, a 30% increase over Wall Street’s estimate. Analysts have responded with aggressive price hikes and upgraded Micron as their “top pick in U.S. semis.” With record-high margins projected, Micron is well-positioned to benefit from the growing demand for AI chips.
The “Micron Effect” has rippled through the chip sector, lifting major peers such as Nvidia, AMD, and Broadcom. Analysts remain highly optimistic about Micron’s long-term prospects, with a Strong Buy consensus rating on TipRanks.
Source: https://www.tipranks.com/news/micron-stock-shatters-records-as-morgan-stanley-analyst-says-its-likely-the-best-semiconductor-revenue-upside-in-u-s-history