Micron Technology IncMU
Mentioned
Impact on stocks 2
Semiconductors
Micron Technology IncArtificial Intelligence
NVIDIA CorporationNVDA
Mentioned
Micron Technology shares surged 16.5% in August, rebounding from July's valuation pressures, as strong quarterly results from Nvidia fueled a recovery in AI hardware stocks. The S&P 500 gained 2.6% and the Nasdaq Composite rose 3.9% during the same period. Nvidia's Q2 earnings beat expectations, with adjusted EPS of $2.22 on revenue of $96.22 billion, and the company guided for roughly 70% annual revenue growth next fiscal year, far above analyst estimates of 44%. Since Micron supplies memory chips for Nvidia's AI processors, this demand outlook bodes well for Micron. Micron is scheduled to report its fiscal fourth-quarter results on Sept. 30, and the company has guided for revenue of roughly $50 billion in the current quarter, a target it may significantly exceed given strong demand for high-performance memory chips. However, expectations are high, and the stock could still fall short-term even with strong guidance, as the unprecedented AI-driven trends make long-term modeling difficult.
Micron Technology IncNVIDIA Corporation