Micron Technologies ( MU ) is up for a second straight day after Nvidia ( NVDA ) noted that it is using MU's chips in its new products. After rising 10.5% yesterday, shares are up 6% today.
Nvidia CEO Jensen Huang reported yesterday that Micron's high-bandwidth-memory (HBM) chips are being included in NVDA's GeForce RTX 50 Blackwell gaming chips.
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Considered an integral part of AI, HBM has been a key growth engine for Micron. During the company's first quarter earnings call, held on December 18, Chief Business Officer Sumit Sadana noted that HBM, combined with SSD chips, made the company's revenue from data centers increase by 400% compared to the same period last year. a quarter. Adding that HBM has become a multi-billion dollar business, Sadana noted that more than half of the company's revenue is generated by data centers.
Foxconn's Strong Results and Micron's Presence on the Evercore List
MU stock was also lifted yesterday by weaker-than-expected Q4 results reported by electronics maker Foxconn. Apple's (AAPL) major iPhone manufacturer, Taiwan-based Foxconn reported Q4 sales of 2.13 trillion New Taiwan dollars or $65 billion. Analysts had expected the company's revenue to reach 2.1 trillion New Taiwan Dollars, according to an estimate compiled by LSEG SmartEstimate. Micron sells chips to Apple.
And yesterday, Micron was listed on a stock list called “AI Enablers, Adopters and Adapters.” Compiled by investment bank Evercore ISI, this list includes members of the Russell 3000 index whose market capitalization exceeds $3 billion and whose previous earnings calls include more references to AI than the average of Russell 2000 members over the past four quarters.
Additionally, stocks should have had a positive reaction to earnings, while their forward P/E ratios are trading below their five-year average. Finally, Evercore ISI predicts that earnings per share for all listed names will increase by at least 9.6%.
While we acknowledge the power of MU, our conviction is based on the belief that other AI stocks hold great promise for delivering high returns, and do so within a short period of time. If you're looking for an AI stock that's more promising than MU but trades at less than 5 times its earnings, check out our report on The highest number of AIs. READ ALSO The 8 Best Wide Moat Stocks to Buy Now again 30 Most Valuable AI Stocks According to BlackRock Disclosure: The author owns MU shares but has no plans to trade them in the next 48 hours. This article was originally published on Insider Monkey.
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