|Bid||0.00 x 1000|
|Ask||0.00 x 21500|
|Day's Range||49.40 - 50.71|
|52 Week Range||31.13 - 61.19|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||25.46|
|Earnings Date||Sep 24, 2020 - Sep 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||64.36|
Micron (NASDAQ:MU) is poised for a major recovery later this year as an economic recovery takes hold, making Micron stock worth another look.Source: Piotr Swat / Shutterstock.com Micron's technology is a fundamental part of any rebound since it is one of the world's top memory chip makers.Its DRAM memory chips, 64% of sales, and NAND chips, 32% of sales, are used in PCs, data centers, and other devices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result, there is a clear correlation between economic growth and the demand for and pricing of memory chips. For example, Barron's cited a report from Wedbush analyst Matt Bryson that demand will flatten out for memory chips through the end of this year. * The 7 Best Stocks to Invest in Right Now Moreover, he says that buyers will have access to many other suppliers and this will hurt memory chip pricing. The Turnaround and Micron StockMicron made non-GAAP net income of $941 million in its Q3 ended May 28 or 82 cents per share. This was well above both the prior quarter and year-ago results.However, due to prior quarter losses, Micron's earnings are still well below last year. For example, its 9 month GAAP results were $1.50 earnings per share (EPS) vs. last year's $5.01 EPS.Wedbush's Bryson noted that the quarter had a small decline in memory pricing. But he was worried that this will continue through the present quarter and later in the year. However, he thinks demand will eventually come back strong.For example, he feels that device upgrades and advances in enterprise hardware and technology as well as in gaming consoles will fuel demand for more memory chips. This will underpin Micron's revenue growth.This seems to be borne out in other analysts' estimates for Micron. Seeking Alpha's poll of 31 analysts expect 2020 EPS to be $2.47. This is well below last year but includes a rebound in the final quarter ending August.More importantly, though, these analysts expect earnings to rebound dramatically in its fiscal 2021 to $4.57. This is close to the company's historical earnings power. For example, in 2019 the company made $5.51 per share.Moreover, at today's price (July 7) for Micron stock, just under $50, that puts it on a cheap 11 times earnings. This is a cheap price for a very profitable technology company. Micron Is Financially HealthyPotential investors in Micron stock need to focus on the company's good financial condition. For example, in the past trailing 12 months (TTM), Micron generated $297 million in free cash flow. This was despite its prior quarter having negative free cash flow.Moreover, the company has over $2.6 billion in net cash, after deducting all of its long-term debt. That still represents 4.4% of Micron's market value at today's price just under $50.In fact, the company has a strong enough condition that it continued its share buybacks in the last quarter. It bought back 929,000 shares at an average price of $40, well below today's price.This $37 million in buybacks is a form of capital return to existing shareholders. I have pointed out in other articles on how buybacks benefit existing investors in a company. What Investors Should Do With Micron StockMorningstar has a report on its site that shows the average P/E ratio over the past five years for Micron is 13.95 times earnings. Given that Micron stock's 2021 forward P/E ratio is 11 times, this shows that the stock is cheap.For example, using the 2021 earnings estimate of $4.57 per share and multiplying it by 13.95 yields a target price of $63.75. Since that is two years out we can discount it by 10% per year. That represents a potential gain of $14.70 over today's price of $49.05 per share. In other words, the potential upside is 30% over two years.For most investors that is a decent return on investment. However, keep in mind that there will be volatility to this return. If earnings do not measure up, the stock may not reflect this expected return.But for the patient investor, this looks like a good trade-off between potential risk and return.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs the Total Yield Value Guide which you can review here. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Micron Stock Is Bound to Bounce Back as Chip Demand Recovers appeared first on InvestorPlace.
The global semiconductor industry, which plays a key role in the high-growth technology space, has been relatively less battered by the coronavirus pandemic.
The semiconductor industry appears to be improving, and few companies are as well positioned as ASML Holding.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Manish Bhatia, Micron Technology Executive Vice President of Global Operations, joins Yahoo Finance's The First Trade to discuss the latest happenings at Micron, the overall semiconductor market and future outlook.
Micron Technology (NASDAQ: MU) has staged a terrific comeback in 2020 after starting the year on its back foot. The chipmaker crushed Wall Street's fiscal 2020 third-quarter expectations and delivered even better guidance, which is impressive considering that spot memory prices have weakened lately. The company anticipates revenue of $6 billion this quarter at the midpoint of the guidance range.
Micron Technology stock has been punished by a downturn in the memory-chip business since late 2018. Here is what the fundamentals and technical analysis say about buying MU stock now.
Micron Technology (NASDAQ: MU) and Taiwan Semiconductor Manufacturing (NYSE: TSM) are two crucial players in the semiconductor market. Micron is one of the world's top producers of DRAM and NAND memory chips, which are widely used in mobile devices, PCs, data centers, and other electronics.
Artificial intelligence (AI) is likewise an important but oft-misunderstood technology. Last month, I talked up Alphabet, salesforce.com, and NVIDIA (NASDAQ: NVDA). When talking about AI hardware, it's easy to default to NVIDIA.
5G is the new wireless standard that promises lightning-fast, low-latency wireless communications that will usher in a new era of futuristic technology applications. Three of the best-positioned 5G stocks that still trade at attractive valuations include wireless carrier T-Mobile (NASDAQ: TMUS), leading chip manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM), and memory chip giant Micron Technology (NASDAQ: MU), all of which look like solid 5G plays to add to your portfolio this summer. Probably not, which is why T-Mobile looks so compelling today.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F […]
Memory chip giant Micron (NASDAQ:MU) reported blockbuster third quarter earnings at the end of June which both whizzed past Wall Street expectations and impressed investors, with MU stock rising 5% to near post-March highs on the news.Source: Piotr Swat / Shutterstock.com But does this strong quarter mean you should buy MU stock?I'd say so.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMU stock isn't my favorite semiconductor stock to buy at current levels. The valuation is a bit stretched on the heels of a huge, 60%+ rally since March. Shares no longer look significantly undervalued to me. Rather, they look fairly valued.At the same time, though, the fundamentals in the memory market are dramatically improving. Thanks to catalysts like workflow digitization, new gaming consoles and 5G, Micron's demand trends will significantly improve over the next few months. Against that backdrop, it's easy to see Micron stock staying in rally mode.Net net, MU stock is a good -- but not great -- pick here.Here's a deeper look. Micron's Earnings Were GreatThere's no other way to put it. Micron's earnings were fabulous. * 7 Utilities Stocks to Buy With Reassuring Dividends Revenues rose 14% year-over-year, marking the first time revenues grew year-over-year since the first quarter of 2019. Revenues were also up 13% quarter-over-quarter. Better yet, revenues next quarter are expected to rise more than 20% year-over-year, so you're seeing this accelerating revenue growth narrative play out.Gross margins clocked in at 33.2%, up four points sequentially. They are expected to rise another two points next quarter, and be up five points year-over-year -- marking the first quarter of gross margin expansion since the first quarter of 2019.Positive operating leverage returned to the Micron growth narrative. After the opex rate rose year-over-year for two straight years, the opex rate in the third quarter dropped year-over-year for the first time since 2018. The drop is expected to happen again in the fourth quarter.Operating margins dropped just five percentage points year-over-year, the smallest decline in six quarters. Next quarter, operating margins are expected to rise seven points year-over-year.Broadly, then, what you're seeing with Micron is a company getting back into growth mode, with rapidly improving margins.In the semiconductor world, that's a winning combination. The Fundamentals Will Only Get BetterThe best part about MU stock is that the company's fundamentals will only get better going forward.Just look at all the demand catalysts on the horizon for this memory chip maker.Workflows are increasingly being digitized thanks to Covid-19. Even if "normal" returns and offices re-open, business investment into cloud technology and infrastructure will only accelerate going forward. This increased cloud investment will create meaningfully large tailwinds for Micron's data-center business.Meanwhile, looking into the back-half of 2020, Apple (NASDAQ:AAPL) is going to launch the 5G iPhone, while Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are going to launch their next-generation gaming platforms. Naturally, these once-in-a-decade product launches will spark supercharged demand in the smartphone and gaming end-markets -- two markets from which Micron derives a bunch of revenue.There's also the broader 5G demand driver here, as the global roll-out of 5G over the next few quarters should dramatically advance edge computing capabilities, which should allow for the emergence of an entirely new class of IoT devices and self-driving technology. Micron also provides chips into those end-markets.Net net, the fundamentals supporting Micron will only get better over the next few months.As they do, revenues will keep charging higher. Gross margins will keep expanding. Opex rates will keep dropping. Operating margins will rising. Profits will keep ballooning. And MU stock will keep rallying. But Micron Stock is Fairly ValuedThe only reservation I have with MU stock here and now is with respect to valuation.Plain and simple, Micron stock is no longer attractively undervalued.Wall Street believes -- and I agree -- that Micron should be able to leverage strong 5G and cloud demand tailwinds to drive robust, 10%+ revenue growth over the next two years. During that stretch, gross margins will meaningfully expand, opex rates will meaningfully drop and profits will soar. My modeling suggests earnings per share growth from about $2.70 this year, to $6 by 2022.MU stock historically trades at 10-times forward earnings, given its history of earnings volatility and exposure to supply-demand swings in the memory chip market.A 10-times forward earnings multiple on $6 in 2022 projected earnings per share implies a 2021 price target for MU stock of $60. Discounted back by 10% per year, that implies a 2020 price target of about $55.That's only a hair above where shares trade today.As such, I think it's fair to say that MU stock is fairly valued. Bottom Line on MU StockMicron just delivered blockbuster earnings which underscore that, despite the Covid-19 pandemic, the global semiconductor market is back.The fundamentals supporting this market -- and Micron -- will only improve going forward as demand trends accelerate. Against that backdrop, it's easy to see MU stock sustaining its current rally. But caution is warranted with respect to the valuation.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long MSFT. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Micron Reports Blockbuster Earnings. Should You Buy MU Stock? appeared first on InvestorPlace.
Jim Cramer answered callers in rapid succession during the Mad Money "Lightning Round" Wednesday evening. One caller asked about Micron Technology : "This is a great opportunity to get in," Cramer replied. The price action the past four weeks has largely been sideways in what technical analysts call an equilateral triangle.
When Micron Technology (NASDAQ: MU) last provided a quarterly update at the end of March, question marks abounded. With cloud computing, 5G wireless network buildout, and a new generation of gaming consoles and personal computing devices on the way, Micron sees sunnier days ahead. Management had called for revenue of $4.6 billion to $5.2 billion, and adjusted earnings per share of $0.40 to $0.70 a few months ago.
It has been a decent week for investors of chipmaker Micron (MU). Monday June 29 saw the release of the company’s fiscal 3Q20 earnings report, in which Micron posted beats all around. The market was impressed by the print, and on Tuesday June 30, sent shares up by a tidy 5%. There was a lot to like in Micron’s quarterly statement, and a good deal to look forward to. On the top-line, Micron beat the estimates by $130 million, delivering 13.6% year-over-year growth to reach revenue of $5.44 billion. The bottom-line result also came in ahead of the consensus estimate by $0.06, as Micron posted non-GAAP EPS of $0.82. Gross margins of 33.2% beat the Street's 32.8% call. Broken down into segments, with bit shipments up 10%, DRAM (memory) revenue increased quarter-over-quarter by 16%. Additionally, NAND (storage) revenue was up 10% compared to the previous quarter. Looking ahead to fiscal 4Q, Micron’s guidance is above the estimates, too. The chipmaker forecasts revenue of between $5.75 billion and $6.25 billion ($6 billion at midpoint), ahead of the Street's call for $5.46 billion. Micron expects to deliver non-GAAP EPS in the range of approximately $1.05 (give or take $0.10), which is above the $0.79 per share consensus estimate. With higher ASPs (average selling prices) and shipments in the quarter indicating low supply and strong demand, the cyclical nature of Micron’s industry appears to be turning in its favor. Needham analyst Rajvindra Gill agrees, and despite the current unprecedented challenges, he expects Micron to deliver the goods. The 5-star analyst said, “Heading into C2H20, MU expects data center demand to remain healthy and mobile to continue to improve. Cloud customer inventories remain healthy, while mobile is a bit elevated in anticipation of demand, as well as COVID-19 and geopolitical supply chain factors… Although we acknowledge that near-term visibility across end markets is limited due to COVID-19 & macro uncertainties, we view MU as a key beneficiary of secular trends of higher memory content in 5G handsets and data center demand.” To this end, Gill is staying with the bulls. In addition to reiterating a Buy rating, the analyst upped his price target from $63 to $70. The implication for investors? Upside potential of 41%. (To watch Gill’s track record, click here) Micron’s Moderate Buy consensus rating is based on 18 Buys, 7 Holds and a lone Sell. Over the next year, the analysts expect shares to appreciate by 33%, as the $66 average price target implies. (See Micron stock analysis on TipRanks)
As you might know, Micron Technology, Inc. (NASDAQ:MU) just kicked off its latest third-quarter results with some very...
Semiconductor stocks have been on fire since late March on optimism that the Covid-19 impact on the global semiconductor market will be both short-lived and not-that-big. That optimism gained credence in late June, thanks to strong earnings reports and updates from Micron (NASDAQ:MU) and Xilinx (NASDAQ:XLNX). Semiconductor stocks continued on their blistering rally.Source: Sundry Photography / Shutterstock.com The world's hottest and arguably strongest semiconductor company, Advanced Micro Devices (NASDAQ:AMD), has been no exception to this trend. From its March lows, AMD stock has risen more than 40%.I think it's worth sticking with this rally in AMD stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite some obvious valuation risks (50-times forward earnings, versus a semiconductor stock average of 19-times forward earnings), AMD stock will continue to rally over the next few months for four big reasons: * The fundamentals underlying the global semiconductor will dramatically improve in the back-half of 2020 and into 2021/22. * AMD's business remains the fastest growing, most exciting business in the global semiconductor market. * Thanks to strong gaming tailwinds, AMD is positioned to have a blockbuster second-half 2020. * New products should sustain robust growth in the company's ultra-important cloud business. Improving FundamentalsThe fundamentals underlying the global semiconductor market will dramatically improve over the next few months thanks to super-charged demand in some of the industry's critical end-markets. * 9 Florida Stocks to Avoid as Coronavirus Rates Spike Just look at all the demand catalysts on the horizon for the semiconductor market.Enterprises everywhere are migrating to cloud-hosted productivity and connectivity solutions, creating super-charged demand for cloud infrastructure. Apple (NASDAQ:AAPL) is going to launch the 5G iPhone in the back-half of 2020. Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE) are going to launch their next-generation gaming platforms. The global roll-out of 5G over the next few quarters should dramatically advance edge computing capabilities, which should allow for the emergence of an entirely new class of IoT devices and self-driving technology.Net net, the fundamentals supporting the semiconductor market will only get better over the next few months, as technological breakthroughs and new products converge to spark super-charged end-market demand for CPUs and GPUs. The Best Game in TownWhen it comes to the semiconductor market, AMD has been, still is and will remain the best game in town.Just look at the company's growth rates.In the first quarter of 2020, AMD reported 40% year-over-year revenue growth. Global semiconductor sales in the same time period rose just 7%. Meanwhile, second quarter sales are expected to rise more than 20%, while full-year 2020 sales are expected to rise 25% -- and that's in the midst of a global pandemic, which entirely shut down semiconductor supply chains early on in the year.In other words, AMD remains on this robust growth trajectory which is unmatched across the global semiconductor market.So long as this remains true -- and it should for the foreseeable future (more on that later) -- then Wall Street will continue to perceive AMD stock as one of, if not the, highest quality stock to buy to play the semiconductor boom.And, so long as that remains true, when the semiconductor market moves higher, AMD stock will be leading the rally. Strong Gaming TailwindsAMD is positioned to report blockbuster results in the second-half of 2020 thanks to its favorable exposure to gaming market tailwinds.For the first time since 2013, Microsoft and Sony are unveiling new generation gaming consoles this holiday season. Both of those consoles are built on AMD's Zen 2-powered CPUs.Demand for these platforms, which represent huge leaps from the current generation of consoles, will be significant. As such, AMD will make and sell a lot of Zen 2-powered CPUs in the third and fourth quarters 2020.At the same time, AMD is planning on launching its new GPU, the highly hyped "Big Navi", in the back-half of 2020. There is a huge opportunity for that new GPU to have tremendous success, because nearly 60% of AMD gamers use legacy GPUs, and the reasons for those majority of gamers to upgrade GPUs will be stronger than ever with the Big Navi product launch and gaming activity and spending at all time high levels.Big picture: AMD's big gaming business is set for a huge second-half. Sustained Cloud MomentumArguably the most important driver of AMD stock's huge gains over the past few years has been the company's ability to penetrate the ultra-valuable, ultra-important cloud data-center market.A few years ago, AMD had zero presence in this market. But, thanks to its Epyc processors and Radeon Instinct GPU accelerators, AMD's data-center business has grown by leaps and bounds in 2018 and 2019. That big growth continued in the first quarter of 2020, and is projected to persist throughout the balance of the year.Net net, exiting 2020, AMD looks positioned to have 10%+ share of the global data-center CPU market.That's a big deal, since the data-center market is a big ($40+ billion within the next few years), and every percentage point AMD gains in market share equates to hundreds of millions of dollars in additional revenue.So long as AMD can sustain robust momentum in this market, the company's growth narrative will remain equally robust. That robust growth narrative will continue to provide support for AMD stock. Bottom Line on AMD StockThe big argument against AMD stock is valuation. I get that argument. I really do. AMD stock trades at 50-times forward earnings. Your typical semiconductor stock trades at 19-times forward earnings.But this premium valuation in AMD stock is warranted by the company's superior growth fundamentals. Those fundamentals are only going to get better over the next several months. As they do, AMD stock will continue to defy valuation logic, and power higher.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long MSFT. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Big Reasons to Stick With the Rally in AMD Stock appeared first on InvestorPlace.
Plan your investment strategy with insights from financial experts in an interactive webinar series brought to you by Yahoo Finance Premium. Yahoo Finance reporter Jared Blikre and guest Brian Shannon, CMT & AlphaTrends Founder discuss how to better manage assets, assess risk, and invest during the recent stock market volatility caused by the COVID-19 pandemic. Recorded 7/1/2020. Not a subscriber? Start your free trial at yahoofinance.com/premium to join future webinars live!
Yahoo Finance's Jared Blikre joins Seana Smith to break down the day's price action in stocks as well as a long in Micron Technologies (MU), a Yahoo Finance Premium Investment Idea.
Chipmakers are benefiting from the demand spike for cloud services, as increasing number of employees and students are now working and learning from home amid the coronavirus-led global lockdown.