The Early Bird - Stock of the Day

Micron Technology (MU)

$97.36

+$2.30 (+2.4%)

Market Cap: $108.46B

About Micron Technology

Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit.

It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

Micron Technology Bull Case

Here are some ways that investors could benefit from investing in Micron Technology, Inc.:

Micron Technology, Inc. reported earnings per share (EPS) of $1.79 for the latest quarter, exceeding analysts' expectations of $1.60. This strong performance indicates robust profitability and effective management, which can attract more investors.
The company achieved a remarkable revenue growth of 84.3% compared to the same quarter last year, reaching $8.71 billion. Such significant growth can signal a strong demand for its products and a positive market position.
Micron Technology, Inc. has declared a quarterly dividend of $0.115 per share, with a yield of 0.53%. This consistent dividend payment can provide a steady income stream for investors, reflecting the company's commitment to returning value to shareholders.
Insider ownership is relatively low at 0.30%, which may suggest that the stock is not overly concentrated among executives, potentially allowing for more equitable price movements based on market conditions.
The current stock price is approximately $85.21, which may be considered attractive given the company's recent financial performance and growth prospects, making it a potential buy for investors looking for value.

Micron Technology Bear Case

Investors should be bearish about investing in Micron Technology, Inc. for these reasons:

The return on equity (ROE) is relatively low at 1.58%, which may indicate that the company is not generating significant profit relative to shareholder equity, potentially raising concerns about its efficiency in using capital.
Micron Technology, Inc. has a net margin of only 3.10%, suggesting that while the company is generating revenue, its profitability is limited. This could be a red flag for investors seeking companies with higher profit margins.
Insider transactions have shown a decrease in ownership, with an executive selling 4,890 shares recently. Such sales can sometimes signal a lack of confidence in the company's future performance from those who are most familiar with its operations.
Despite the strong revenue growth, the semiconductor industry can be highly cyclical and subject to rapid changes in technology and demand, which may pose risks to sustained performance.
Institutional investors hold 80.84% of the stock, which could lead to volatility if large investors decide to sell their positions, potentially impacting the stock price negatively.

3 Stocks Leveraging NVIDIA’s Strength for Profits

Written By Thomas Hughes on 1/10/2025

Konskie, Poland - January 13, 2024: Micron Technology company logo displayed on mobile phone screen — Stock Editorial Photography

NVIDIA (NASDAQ: NVDA) is the most important stock in the market but not the only one benefiting from AI or its advances. Peripheral businesses like Micron Technology (NASDAQ: MU) and collaborators like Logitech International (NASDAQ: LOGI) and Uber Technologies (NYSE: UBER) are well-positioned. They are positioned to benefit from demand in the first case and advancement of AI in the other, and more importantly, able to capitalize on it.

Why Micron’s HBM3E Technology Leads the Industry

Micron’s HBM3E technology is the best and would be in high demand with or without NVIDIA. HBM3E provides the capacity to run the most advanced cloud applications with better performance and lower power usage than its competitors. It just so happens that NVIDIA’s GPUs and CPUs are central to the rise in AI and driving the demand today. That and normalization in legacy markets have Micron’s revenue growing at a hyper pace in 2025 and forecasted to remain robust in the subsequent year. Among the critical details is the margin, which is widening due to strength in the higher-margin next-gen end-markets and revenue leverage.

The consensus estimates for 2025 and 2026 rose at the end of 2024 but are likely low due to the demand and ramping capacity. The company is expanding its HBM footprint with a $7 billion facility expected to commence operations in early 2026, and other links in the AI supply chain are doing likewise. Taiwan Semiconductor is ramping capacity in several locations, increasing its capacity outlook while paving a path to onshoring production of NVIDIA’s most advanced technology. Regarding the price targets, analysts' consensus reported by MarketBeat forecasts this stock to trade near $135 or 35% upside from early January trading levels.

Micron MU stock chart

Uber and NVIDIA Aim to Disrupt the Autonomous Vehicle Industry

Uber and NVIDIA are collaborating on a program harnessing Uber’s data generation capability and NVIDIA’s AI computing power to advance autonomous driving. While still a future event, the move to autonomous driving will open new revenue opportunities for this company, allowing it to evolve with technology, and the outlook is bright.

The analysts forecast double-digit growth for Uber over the next few years, with improved earnings quality. The company has already significantly improved its earnings quality, as seen in the 2024 report, and begun aggressive capital returns because of it. Capital returns are expected to continue and possibly strengthen, providing market support at crucial times through buybacks while improving shareholder value.

Analysts like Uber. Not only is coverage rising, but sentiment is firm at Moderate Buy, and the price target is trending higher. The activity is mixed; there were some downgrades and price target reductions in 2024, but the positive outweighs the bad, leaving the consensus target up nearly 60% for the year and 40% above the early January price action.

Uber stock chart

Logitech Advances Streaming Capability: NVIDIA Expands AI Use-Cases

Logitech, NVIDIA, and Inworld AI collaborated on an AI agent for streamers. The tool on G’s Streamworld provides a 3-D assistant that can co-host while automating production. While having a small impact on revenue, the assistant is yet another feature that sets Logitech apart from competitors. Logitech is the leading manufacturer of peripheral devices for computers and services to support them; integrating AI agents into its ecosystem is a natural progression.

Regarding Logitech’s revenue and earnings outlook, the company is expected to sustain growth in 2025 and accelerate it over the next few years. Earnings are forecasted to grow more than 50% by 2030, putting this stock at a 14x valuation and deep-value territory.

Logitech’s dividend is part of its appeal. The stock isn’t a high-yield, but it is competitive, with the S&P 500 running near 1.5% and reliable. The company pays only 25% of its current year earnings outlook and has a solid record of increases. The company has increased its payment at a double-digit CAGR for over a decade and should sustain long-term growth at this pace due to balance sheet health, improving cash flow, and the earnings growth outlook.

Logitech LOGI stock chart