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The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of common stocks of U.S. semiconductor companies. These companies are principally engaged in the manufacture of semiconductors. The fund is non-diversified.

Avago Technologi

Analog Devices, Inc.

Nvidia Corp.

Applied Materials, Inc.

Lam Research Corp

Advanced Micro Devices Inc

Qualcomm Inc.

Micron Technology, Inc.

Credo Technology Group Holding Ltd

Cirrus Logic Inc

PS International Group Ltd. - Ordinary Shares

PS International Group Ltd

AdvisorShares Psychedelics ETF

PROFILE SOLUTIONS INC by Profile Solutions, Inc.

Profile Solutions Inc

POWER SOLUTIONS INTL INC by Power Solutions International, Inc.

Power Solutions International Inc

Struggling chipmaker Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;continues to receive <a target="_blank" href="https://www.benzinga.com/news/24/09/40968128/qualcomm-reportedly-eyes-potential-takeover-of-intel-amid-60-stock-decline-but-antitrust-concerns-lo" rel="noreferrer noopener">takeover proposals from</a> chip companies, the latest being Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) following Qualcomm Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) proposal earlier.
Arm Holdings recently proposed to acquire Intel&#8217;s product unit. However, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-27/arm-rejected-by-intel-after-approaching-it-about-buying-product-unit?sref=TBDibEcD" rel="noreferrer noopener">reports</a> that Intel is not looking to sell the business division.
Intel stock plunged 31% as it failed to capitalize on the artificial intelligence shift, which is something that contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) excelled at.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/41012678/super-micro-unveils-next-gen-servers-powered-by-intels-latest-xeon-chips" rel="noreferrer noopener">Super Micro Unveils Next-Gen Servers Powered by Intel&#8217;s Latest Xeon Chips</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png" alt="" class="wp-image-569782" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Meanwhile, some reports indicated Intel&#8217;s plans to convert its <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">foundry business into</a> an independent unit, including exploring a spinoff into a publicly traded company. The chipmaker also explored divesting stake in the programmable chip unit&nbsp;Altera.
However, Intel&#8217;s recent big wins included a&nbsp;U.S. chipmaking deal from&nbsp;Amazon.Com Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web services and the U.S. Chip grant.
The chipmaker also clarified that it would not divest a majority stake in the struggling <a target="_blank" href="https://www.benzinga.com/news/24/09/40941075/whats-going-on-with-autonomous-driving-stock-mobileye-thursday" rel="noreferrer noopener">Israeli autonomous driving company</a> Mobileye Global Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), whose stock is down 66% in the last 12 months.
Intel&#8217;s exploration of stake sales to companies like Qualcomm and Arm could hinder its U.S. subsidy over antitrust grounds, the Financial Times <a target="_blank" href="https://www.ft.com/content/ff0ca77d-ad35-45ba-a493-201a26932efb" rel="noreferrer noopener">reports</a>.
Multiple deals including Nvidia&#8217;s proposal to snap Arm Holdings from&nbsp;Softbank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Intel&#8217;s&nbsp;Tower Semiconductor (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSEM#NASDAQ">TSEM</a>) deal have succumbed to global regulatory opposition.
The semiconductor sector had a good week, buoyed by the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41046485/whats-going-on-with-nvidia-braodcom-intel-and-other-chip-stocks-on-thursday" rel="noreferrer noopener">key rate cuts</a> in the U.S. and China, an upbeat quarterly print from Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), and continued AI investments from Big Tech companies.
Semiconductor ETFs, Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>), gained 5%- 7% in the last five days.
Price Action: INTC stock is down 0.04% at $23.91 at the last check on Friday.
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AMZN

INTC

MBLY

NVDA

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

QCOM

SFTBF

SFTBY

TSEM

What's Going On With Intel Stock On Friday?

Semiconductor, hardware, and artificial intelligence-linked stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are down as the sector continues to pull back.
AI stocks led by Nvidia, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) selloff continue their <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40746353/nvidia-super-micro-arm-tumble-2-in-premarket-most-chip-peers-deep-in-red-whats-dragging-down-sem" rel="noreferrer noopener">downward price trajectory</a> as the Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly prints failed to impress the Street.
Broadcom released its third-quarter earnings on Thursday. The <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu" rel="noreferrer noopener">topline grew 42%</a> to &nbsp;$13.07 billion in the third quarter, topping the analyst estimate of $12.96 billion. The chipmaker expects fourth-quarter revenue of $14 billion, above the analyst consensus of $12.70 billion. The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40740457/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend" rel="noreferrer noopener">adjusted gross margin</a> grew by 110 bps sequentially and 230 bps year-on-year to 77.4%.
JPMorgan analyst Harlan Sur projected upside, citing robust AI growth, VMware momentum, and recovery in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750949/broadcom-analysts-lifts-ai-revenue-forecast-to-12b-on-potential-strong-demand-from-" rel="noreferrer noopener">traditional semiconductor sectors</a>.
Last week, Nvidia&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">second-quarter topline</a> grew 122% to $30.04 billion, surpassing the analyst estimate of $28.68 billion. It expects third-quarter revenue of $31.85 billion-$33.15 billion versus the analyst consensus of $31.77 billion. The adjusted gross margin declined 320 bps sequentially and grew by 450 bps year-on-year.
BofA Securities analyst Vivek Arya maintained a bullish outlook backed by data center and AI training demand and <a target="_blank" href="https://www.benzinga.com/news/24/09/40737481/nvidias-future-tied-to-llms-and-gaming-despite-ai-capex-skepticism-remains-a-sector-favorite-analyst" rel="noreferrer noopener">supply chain recovery</a>.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), which tracks the overall performance of the 25 largest U.S.-listed companies that produce semiconductors, including Nvidia, Taiwan Semiconductor, Broadcom, and AMD, has been down 12% in the last five days. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 12% in the previous five days.
Nvidia has been down 15% in the last five days. AMD lost over 10%, and Taiwan Semiconductor lost 8%. The selloff refused to subside despite assurances from <a target="_blank" href="https://www.benzinga.com/news/24/09/40735058/taiwan-semis-supplier-dismisses-selloff-projects-strong-ai-growth-surge" rel="noreferrer noopener">contract chipmakers like</a> Taiwan Semiconductor and Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) regarding sustained AI demand.
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which corresponds to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors&nbsp;Index, lost 26% in the last five days.
ETFs with exposure to riskier indexes noted volatility during the period. ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>), which corresponds to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Semiconductors Index, gained 28% in the last five days.
The ETFs tracking broader indexes like the S&amp;P 500 and NASDAQ saw relatively lesser value losses due to Big Tech stocks like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 stock market index, including Big Tech stocks, lost 3.5% in the last five days. Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the NASDAQ index, lost 5% in the last five days.
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Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

ETFs

AVGO

FTXL

MSFT

SOXQ

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

SSNLF

Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) saw its shares decline Friday despite reporting substantial second-quarter profits following a verbal attack from former President Donald Trump.
Trump questioned the U.S. <a target="_blank" href="https://www.benzinga.com/government/24/07/39816230/whats-going-on-with-nvidia-amd-and-semiconductor-peer-stocks-on-wednesday" rel="noreferrer noopener">obligation to defend</a> Taiwan, flagging the lack of a formal defense treaty between the U.S. and Taiwan, unlike with South Korea and Japan, the Financial Times <a target="_blank" href="https://www.ft.com/content/2d464117-1aed-4918-8ce6-db341a59735a" rel="noreferrer noopener">reports</a>. Taiwan Semiconductor stock lost over 6% so far this week.
The key Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) supplier announced a net profit of $7.6 billion for <a target="_blank" href="https://www.benzinga.com/news/24/07/39842530/whats-going-on-with-nvidia-and-amd-stocks-on-thursday" rel="noreferrer noopener">the June quarter</a>, surpassing market expectations as continued artificial intelligence demand translates into tailwinds.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44.png" alt="" class="wp-image-445140" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
It also projected a more than one-third increase in third-quarter sales.
With Taiwan holding a 90% market share in AI server production, Taiwan Semiconductor&#8217;s role in the global supply chain is irreplaceable.
In 2023, the AI chip market reached $53.6 billion, as per <a target="_blank" href="https://www.statista.com/statistics/1283358/artificial-intelligence-chip-market-size/#:~:text=In%202023%2C%20the%20artificial%20intelligence,billion%20U.S.%20dollars%20in%202025." rel="noreferrer noopener">Statista</a>. Projections indicate it will rise to $71.3 billion by the end of 2024 as interest in AI applications continues to grow, with estimates suggesting the market will exceed $90 billion in 2025.
However, political risks for Taiwan Semiconductor and other Taiwanese companies are rising as China intensifies threats and military exercises around the island, FT writes. Approximately 80-90% of Taiwan Semiconductor&#8217;s production capacity is based in Taiwan.
Taiwan Semiconductor has consistently stated that it will maintain most of its manufacturing, research, and development in Taiwan while investing $65 billion in three factories in Arizona, USA.
Trump, a Republican presidential candidate, added to the uncertainty by suggesting that Taiwan should compensate the U.S. for its defense.
Consequently, AI chip stocks mainly dependent on Taiwan Semiconductor, like Nvidia and&nbsp;Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), saw a selloff this week. Nvidia lost over 5%, and AMD lost&nbsp;over 14% so far this week. AI server company and a key Nvidia supplier Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) lost 10% so far this week.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45.png" alt="" class="wp-image-445172" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
According to <a target="_blank" href="https://www.globenewswire.com/news-release/2024/07/17/2914745/0/en/Semiconductor-Market-Size-Expected-to-Reach-USD-1-137-57-Billion-by-2033.html" rel="noreferrer noopener">Precedence Research</a>, the global semiconductor market was valued at $584.17 billion in 2024 and is projected to grow to approximately $1.14 trillion by 2033, with a CAGR of 7.64% from 2024 to 2033. Investors can gain exposure to the semiconductor sector through Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>).
Price Actions:&nbsp;TSM shares traded lower by 0.62% at $170.80 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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AI Chip Stocks Nvidia, AMD, Taiwan Semi Saw A Selloff This Week -  What's Going On?

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the Invesco Semiconductors ETF (ARCA:PSI), a passively managed exchange traded fund launched on 06/23/2005.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $939.64 million, making it one of the larger ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. PSI seeks to match the performance of the Dynamic Semiconductor Intellidex Index before fees and expenses.
The Dynamic Semiconductor Intellidex Index is comprised of stocks of semiconductor companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.19%.
Sector Exposure and Top Holdings
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Broadcom Inc&nbsp;accounts for about 5.95% of total assets, followed by Nvidia Corp and Micron Technology Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>).
The top 10 holdings account for about 47.87% of total assets under management.
Performance and Risk
So far this year, PSI has gained about 30.52%, and it&#39;s up approximately 44.64% in the last one year (as of 07/08/2024). During this past 52-week period, the fund has traded between $37.92 and $64.84.
The ETF has a beta of 1.38 and standard deviation of 34.12% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Semiconductors ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PSI is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/soxx#NASDAQ">SOXX</a>) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>) tracks MVIS US Listed Semiconductor 25 Index. IShares Semiconductor ETF has $15.63 billion in assets, VanEck Semiconductor ETF has $23.21 billion. SOXX has an expense ratio of 0.35% and SMH charges 0.35%.
<a href="https://www.zacks.com/stock/news/2297703/should-you-invest-in-the-invesco-semiconductors-etf-psi?cid=CS-BENZ-FT-sector_etf-2297703">To read this article on Zacks.com click here.</a>

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Should You Invest in the Invesco Semiconductors ETF?

Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39173636/micron-samples-next-gen-graphics-memory-for-gaming-and-ai" rel="noreferrer noopener">announced the sampling</a> of its next-generation GDDR7 graphics memory, which boasts the industry&#8217;s highest bit density, at the Computex event in Taiwan.
Utilizing Micron&#8217;s 1β DRAM technology, GDDR7 delivers 32 Gb/s performance with a 60% increase in bandwidth over GDDR6.
It enhances AI, gaming, and high-performance computing with improved efficiency and reliability. GDDR7 reduces power consumption and improves battery life with a new sleep mode, increasing throughput and response time for AI workloads.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/05/39118149/amd-tsmc-broadcom-and-other-chip-stocks-hit-by-bidens-fresh-ai-chip-export-restrictions-details" rel="noreferrer noopener">AMD, TSMC, Broadcom And Other Chip Stocks Hit By Biden&#8217;s Fresh AI Chip Export Restrictions: Details</a>
Meanwhile, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39168191/nvidia-maintains-lead-as-key-ai-beneficiary-analyst-boosts-estimates-after-taiwan-e" rel="noreferrer noopener">analysts noted Nvidia&#8217;s</a> addition of HBM4 support while doubling networking for Infiniband/SpectrumX/NVLink as a catalyst for Micron, pronouncing Nvidia as the key AI beneficiary after the Taiwan event.
Micron expects&nbsp;HBM to be a <a target="_blank" href="https://www.benzinga.com/news/24/05/39042042/whats-going-on-with-micron-stock-tuesday-chip-designer-plans-new-factory-by-2026" rel="noreferrer noopener">multibillion-dollar business</a> in fiscal 2025, enabling over 50% of PCs&nbsp;to be AI-enabled by 2027. It also plans to construct a new plant next to its Hiroshima factory by 2026 and invest 800 billion yen in advanced DRAM.
Micron stock gained 87% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>)
and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: MU&nbsp;shares traded higher by 4.71% at $132.61 at&nbsp;the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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What's Going On With Micron Tech Stock On Wednesday?

Micron Technology&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) has&nbsp;been ordered&nbsp;to pay $445 million in damages to&nbsp;Netlist&nbsp;Inc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/NLST#OTC">NLST</a>) for infringing on Netlist&#8217;s patents related to high-performance memory-module technology.
The decision was reached by&nbsp;a jury in the U.S. District Court for the Eastern District of Texas, reported Reuters.
Netlist had accused Micron of using its patented technology to improve the capacity and performance of memory modules in semiconductor-memory products.
The jury found Micron&#8217;s infringement to be willful, which might allow the judge to increase the damages up to threefold.
&#8220;We are grateful for the jury&#8217;s service, and their recognition of the importance of Netlist&#8217;s innovation,&#8221; said Netlist attorney Jason Sheasby, which the report quoted.
This&nbsp;follows a previous $303 million verdict Netlist secured against&nbsp;Samsung Electronics Co Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) last year in the same court.
The lawsuit filed by Netlist in 2022 claimed&nbsp;that Micron&#8217;s semiconductor memory-module lines infringed on three of its patents.
Micron had denied the allegations and contested the validity of Netlist&#8217;s patents.&nbsp;In April, a U.S. Patent and Trademark Office tribunal invalidated one of the patents, which could&nbsp;potentially&nbsp;reduce the damages awarded.
Related Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/05/38650086/intel-micron-among-winners-in-bidens-280b-chips-act-for-semiconductor-advancement" rel="noreferrer noopener">Intel, Micron Among Winners In Biden&#8217;s $280B CHIPS Act For Semiconductor Advancement</a>
In April, the company received a $6.1 billion grant under the CHIPS and Science Act to aid Micron&#8217;s commitment to investing about $50 billion in gross capital expenditures for domestic&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38437555/microns-6-1b-chips-act-funding-propels-major-expansion-in-us" rel="noreferrer noopener">leading-edge memory manufacturing through 2030.&nbsp;</a>
Micron has also raised its&nbsp;fiscal 2024 capital expenditure to $8 billion,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38948239/whats-going-on-with-bidens-chips-act-beneficiary-micron-tech-stock-tuesday" rel="noreferrer noopener">higher than prior expectations of $7.5 billion</a>.
Micron stock gained more than 89% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>).
Price Action:&nbsp;MU shares are&nbsp;trading higher by 1.16% at $127.73 in&nbsp;premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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Micron Ordered To Pay $445M Penalty For Patent Violation: Report

Micron Technology, Inc.&nbsp;(NASDAQ:&nbsp;MU) shares are trading lower after the company raised its 2024 capex expectations on Tuesday.
The&nbsp;key&nbsp;$280 billion&nbsp;U.S.&nbsp;CHIPS Act beneficiary now expects fiscal 2024 capital expenditure of $8 billion, higher than prior expectations of $7.5 billion.
Micron is a leading provider of&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory (HBM) chips</a>,&nbsp;which are&nbsp;critical components of the hardware used in artificial intelligence servers.&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H200 chips will leverage Micron&#8217;s advanced HBM3E.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38437555/microns-6-1b-chips-act-funding-propels-major-expansion-in-us" rel="noreferrer noopener">Micron&#8217;s $6.1B CHIPS Act Funding Propels Major Expansion In&nbsp;US</a>
&#8220;In fiscal 2025, we expect HBM to be a multibillion-dollar business for us,&#8221; Reuters cites COO Manish Bhatia said at the J.P. Morgan Technology, Media and Communications Conference.
Micron expects to enable more than 50% of the&nbsp;PCs&nbsp;to be AI-enabled by 2027.
Micron also announced&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38940208/micron-expands-workforce-development-collaborations-to-meet-future-semiconductor-job-demand" rel="noreferrer noopener">a strategic expansion</a>&nbsp;in workforce development initiatives to diversify the semiconductor workforce and build a robust talent pipeline through education and career reentry initiatives.&nbsp;
Micron has tapped&nbsp;GlobalFoundries Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>), the&nbsp;U.S.&nbsp;National Science Foundation (NSF), and additional leaders in industry, government, and education to boost access to opportunities and to meet the growing demand for semiconductor talent in the&nbsp;U.S.
Analysts had predicted Micron&#8217;s upside from its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38649999/whats-going-on-with-micron-tech-stock-on-monday" rel="noreferrer noopener">HBM&nbsp;market moat</a>. They also saw upsides from strong DRAM pricing, shipments of higher-priced, higher-margin products, and&nbsp;increased&nbsp;AI&nbsp;exposure.
Micron stock gained 94% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>).
Price Action: MU shares traded lower by 0.60% at $128.21 at the last check Tuesday.
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What's Going On With Biden's Chips Act Beneficiary Micron Tech Stock Tuesday?

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares are trading higher after&nbsp;Baird&nbsp;analyst Tristan Gerra upgraded the stock from Neutral to Outperform and raised its&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MU/analyst-ratings" rel="noreferrer noopener">price target from $115 to $150</a>.
Citi&nbsp;analyst Christopher Danely remains bullish on the U.S. semiconductor sector. His top pick remains&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>)
&nbsp;with other Buy-rated names, including&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>),&nbsp;Broadcom Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>),&nbsp;Analog Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>),&nbsp;Microchip Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), and&nbsp;ON Semiconductor Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>).
Last Friday afternoon, the SIA announced March monthly sales of $50.8 billion (up 16.4% month-over-month), above the analyst&#8217;s estimate of $50.1 billion (up 14.8% M/M) and seasonality of up 12.0% M/M driven by above-seasonal sales across all products, most notably from analog and microcontrollers, Danely noted.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38029253/nvidia-broadcom-lead-ai-charge-bofa-analyst-tips-amd-micron-as-emerging-contenders-" rel="noreferrer noopener">Nvidia, Broadcom Lead AI Charge: BofA Analyst Tips AMD, Micron as Emerging Contenders in Explosive Market Growth</a>
He said analog and microcontroller units were up roughly 50% M/M, well above seasonality of&nbsp;up&nbsp;roughly 20% M/M.&nbsp;
This data, together with recent commentary from the analog companies, supports Danely&#8217;s view of an analog inventory replenishment in the second half of 2024.
Danely maintained his 2024 semi sales forecast of up 11% Y/Y.&nbsp;
Analysts have previously forecasted Micron&#8217;s upside from its&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory (HBM)</a>&nbsp;market moat. They also projected upside from strong DRAM pricing and shipments of higher-priced, higher-margin and&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37756497/microns-stock-soars-as-analysts-forecast-strong-ai-and-dram-driven-earnings" rel="noreferrer noopener">increasing AI exposure</a>.
Micron stock gained 97% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 4.75% at $120.15 on the last check Monday.
Also Read: <a href="https://www.benzinga.com/news/24/03/37795929/micron-technology-poised-for-growth-on-strong-ai-demand-as-industry-enters-the-most-significant-memo" target="_blank" rel="noreferrer noopener">Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst</a>
Photo courtesy of Micron

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What's Going On With Micron Tech Stock On Monday?

ACM Research Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACMR#NASDAQ">ACMR</a>) shares are trading lower on Friday after the company announced preliminary unaudited&nbsp;<a href="https://www.benzinga.com/pressreleases/24/04/g38454367/acm-research-announces-preliminary-unaudited-revenue-and-shipments-for-the-first-quarter-2024" target="_blank" rel="noreferrer noopener">revenue and shipments for the first quarter.</a>
The company registered preliminary unaudited revenue for the first quarter of 2024 of $150 million to $152 million versus&nbsp;the estimate&nbsp;of $152.41 million.&nbsp;This&nbsp;represents&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">year-over-year growth of 102% to 105%</a>.
The company said preliminary total shipments&nbsp;are expected&nbsp;to be&nbsp;in the range of&nbsp;$235 million to $240 million,&nbsp;which would represent&nbsp;year-to-year growth of 163% to 169%.
ACM Research&nbsp;reaffirmed&nbsp;full year&nbsp;2024 revenue outlook in the range of $650 million to $725 million versus $701.7 million,&nbsp;which would&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">represent&nbsp;year-to-year growth of 17% to 30%.</a>
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, ACM Research stock has gained over 117% in the past year. Investors can gain exposure to the stock via Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and Matthews China Discovery Active ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHS#NASDAQ">MCHS</a>).
ACMR Price Action:&nbsp;ACM Research shares are trading lower by 4.28% to $27.08 at publication Friday.&nbsp;
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38465570/snap-investors-celebrate-q1-earnings-but-analysts-arent-ready-to-party-just-yet-the">Snap Investors Celebrate Q1 Earnings, But Analysts Aren&#8217;t Ready To Party Just Yet: &#8216;The Most Expensive Name In Social&#8217;</a>

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Why ACM Research Shares Are Falling Today

On Thursday,&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) announced signing a non-binding Preliminary Memorandum of Terms (PMT)&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38311337/microns-us-expansion-plans-get-presidential-nod-with-6-1b-investment" rel="noreferrer noopener">for $6.1 billion in</a>&nbsp;funding under the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38423841/micron-biden-harris-administration-u-s-senate-majority-leader-schumer-announce-6-1b-in-chips-and-s" rel="noreferrer noopener">CHIPS and Science Act</a>.&nbsp;
This funding will support Micron&#8217;s planned leading-edge memory manufacturing in Idaho and New York.
The CHIPS and Science Act will allocate $6.1 billion in grants to aid Micron&#8217;s commitment to investing about $50 billion in gross capital expenditures for domestic leading-edge memory manufacturing through 2030.&nbsp;
These grants and additional state and local incentives will facilitate the construction of one leading-edge memory manufacturing facility next to Micron&#8217;s existing leading-edge R&amp;D facility in Boise, Idaho, and two leading-edge memory facilities in Clay, New York.
Today&#8217;s announcement marks the first phase of Micron&#8217;s strategy to establish a leading-edge R&amp;D and manufacturing center in Boise, Idaho, and a four-fab manufacturing complex in Clay, New York, over the next twenty-plus years.&nbsp;
This strategy involves a potential investment of up to $125 billion and aims to grow Micron&#8217;s memory bit supply to match long-term industry demand growth.&nbsp;
Micron&#8217;s planned advanced semiconductor manufacturing facilities will likely generate approximately 75,000 domestic jobs over the next 20-plus years.&nbsp;
Analysts have highlighted Micron&#8217;s leadership in the&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory</a>&nbsp;(HBM) product sector, with HBM3E offering 30% greater power efficiency than competitors, translating into significant revenue visibility.&nbsp;
Micron projects that its market share in HBM will match its broader DRAM market share by 2025.&nbsp;Adopting&nbsp;HBM could significantly influence Micron&#8217;s gross margins, potentially restoring them to peak levels seen in memory cycles, as per analysts.
Micron Technology stock gained over 92% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded lower by 0.05% at $111.72 on&nbsp;the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors
Photo via Shutterstock

Micron's $6.1B CHIPS Act Funding Propels Major Expansion In US

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) will likely receive $6.1 billion in grants from the U.S. Commerce Department.&nbsp;
This funding is for Micron&#8217;s domestic factory, which aims to shift semiconductor production back to the U.S..&nbsp;
Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-17/micron-mu-to-get-over-6-billion-in-chips-act-grants-in-announcement-next-week?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>&nbsp;that this initiative aligns with the broader national strategy to rejuvenate American chip manufacturing, a sector that has largely migrated to Asia over recent decades.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38167236/micron-unveils-quad-port-ssd-for-next-gen-intelligent-vehicles" rel="noreferrer noopener">Micron Unveils Quad-Port SSD For Next-Gen Intelligent Vehicles</a>
The grant, which is part of a package that also includes loans, is expected to be announced next week.
President Joe Biden plans to highlight this development during a visit to the Syracuse, New York, area, where Micron is constructing new factories. The project is also underway in Boise, Idaho, Micron&#8217;s headquarters.
Micron&#8217;s ambitious plans include the construction of up to four factories in New York State and one in Idaho.&nbsp;
The Commerce Department focuses on funding projects that promise production startup by the end of the decade, with Micron&#8217;s initial two New York sites expected to meet this timeline.
<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">Analysts have flagged</a>&nbsp;Micron&#8217;s strategic focus on the high-bandwidth memory (HBM) market, particularly its leadership in the HBM3E sector, known for its 30% greater power efficiency than competitors.&nbsp;
The company&#8217;s emphasis on HBM, designed for specific computing architectures, marks a shift from the generic approach in memory products and is integral to engaging with critical data center market customers.&nbsp;
As analysts have noted, adopting HBM could significantly enhance Micron&#8217;s gross margins.
Micron stock gained 88% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 1.93% at $118.58 premarket on the last check Thursday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38209204/microns-dram-supply-temporarily-hit-by-taiwan-earthquake-but-long-term-outlook-remains-strong" rel="noreferrer noopener">Micron&#8217;s DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Micron's US Expansion Plans Get Presidential Nod with $6.1B Investment

Piper Sandler&nbsp;analyst Harsh V. Kumar reiterated an Overweight rating on&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with a price target of $130.
During Kumar&#8217;s AI Discovery Bus Tour last week, he engaged with Micron&#8217;s management, gaining valuable insights into their strategic direction, particularly in the high-bandwidth memory (HBM) market. Micron&#8217;s leadership in the HBM3E product sector, noted for its 30% greater power efficiency over competitors, is converting into significant revenue visibility, per the analyst.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38209204/microns-dram-supply-temporarily-hit-by-taiwan-earthquake-but-long-term-outlook-remains-strong" rel="noreferrer noopener">Micron&#8217;s DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong</a>
Kumar stated that the company has already sold out its HBM capacity for 2024 and most of 2025 and anticipates revenue growth from this segment in the coming years. This reflects a broader industry shift towards differentiation, with HBM designed to cater to specific compute architectures, moving away from the previously commodity-like approach in memory products, he said.
Micron&#8217;s projection that its HBM market share, in both bits and revenue, will align with its broader DRAM market share by 2025 underscores the strategic importance of HBM in its product lineup.&nbsp;
The company is facing challenges in expanding HBM capacity, requiring cleanroom environments and significant capital expenditure, yet is committed to overcoming these hurdles. The analyst said that this commitment is part of Micron&#8217;s broader strategy to engage with leading customers in the data center market, who have been providing positive feedback through the qualification processes.
Looking ahead, Micron is preparing for the next generation of HBM, with HBM4 volume production slated for around 2026, underscoring the company&#8217;s commitment to innovation and its customers&#8217; future needs, per the analyst. The adoption of HBM will likely substantially impact Micron&#8217;s gross margins, potentially returning them to peak levels seen in previous memory cycles, Kumar said.&nbsp;
Kumar projected third-quarter revenue and EPS of $6.61 billion and $0.87.
Micron stock gained over 96% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 0.07% at $122.5 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Analyst Color

Micron Dominates High-Bandwidth Memory Market, Anticipates Significant Revenue Growth: Analyst

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) announced that the April 3&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38108147/taiwan-semi-a-key-supplier-to-nvidia-and-apple-springs-back-to-action-after-taiwan-earthquake" rel="noreferrer noopener">earthquake in Taiwan</a>&nbsp;will likely reduce its dynamic random access memory (DRAM) supply for the calendar quarter by up to a mid-single-digit percentage.&nbsp;
With operations in four Taiwanese locations, Micron plays a significant role in the global chip supply chain, sparking concerns about potential disruptions due to the earthquake.&nbsp;
However, the company clarified that while it hasn&#8217;t reached full DRAM production capacity post-earthquake, the event will not affect its long-term DRAM supply capabilities, Reuters reports.
These chips, designed for use in&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H200 graphics processing units for AI applications, have seen tremendous market demand.&nbsp;
The booming AI industry&#8217;s demand for DRAM chips has led to a surge in Micron&#8217;s stock as investors recognize the company&#8217;s growing role in supplying the technology sector.
In response to the increasing demand, especially from the AI sector, Micron began mass production of its high-bandwidth memory (HBM) chips in February.&nbsp;
A 7.2-magnitude earthquake struck Taiwan on Wednesday at 8 a.m. local time, with Hualien in eastern Taiwan as its epicenter. This was the most severe earthquake to hit the region in 25 years.&nbsp;
Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) quickly evacuated its factories, raising concerns about potential production impacts.&nbsp;
However, TSMC reassured that its safety protocols were effective, reporting a swift recovery of over 80% in tool functionality at its facilities, including the advanced Fab 18 in Tainan, expecting full operational status by day&#8217;s end. Meanwhile, Nvidia communicated that, after consulting with its manufacturing partners, it foresees no disruptions to its supply chain due to the earthquake, as reported by Reuters.
Analysts&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38167236/micron-unveils-quad-port-ssd-for-next-gen-intelligent-vehicles" rel="noreferrer noopener">flagged Micron&#8217;s HBM3E</a>&nbsp;due to its outstanding thermal and power efficiency, highlighting its 30% reduced power consumption over SK Hynix and its technological edge over Samsung, which faced delays.&nbsp;
They predicted Micron would dominate the HBM market, potentially exceeding $1 billion in HBM revenues by the 2024 calendar year, positioning Micron as a significant player in the semiconductor sector.
Micron stock surged over 96% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 3.16% at $126.06 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Micron

Micron's DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong

On Wednesday, Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) said it has qualified a full suite of its automotive-grade memory and storage solutions for Qualcomm Incorporated&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) <a href="https://www.benzinga.com/pressreleases/24/04/g38176520/microns-full-suite-of-automotive-grade-solutions-qualified-for-qualcomm-automotive-platforms-to-po" target="_blank" rel="noreferrer noopener">Snapdragon Digital Chassis.</a>
Micron and Qualcomm Technologies collaborate to advance AI-powered intelligent vehicle development for the next generation.
Qualcomm&#8217;s Snapdragon Digital Chassis is a comprehensive set of cloud-connected platforms designed to power data-rich, intelligent automotive services.&nbsp;
According to&nbsp;<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, QCOM stock has gained over 41% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074702/QCOM-2.png" alt="" class="wp-image-285574" style="width:783px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074702/QCOM-2.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074702/QCOM-2-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Micron has integrated LPDDR5X memory, UFS 3.1, Xccela flash memory, and quad SPI-NOR flash into the newest Snapdragon automotive solutions, catering to AI needs.
&#8220;Our broad portfolio of automotive memory and storage solutions provides the instant-on performance required on the road, and we&#8217;re thrilled to work with Qualcomm Technologies to accelerate ecosystem adoption of the leading-edge solutions designed to make vehicles safer and smarter,&#8221; said Chris Jacobs, vice president of Micron&#8217;s embedded market segments.&nbsp;
&#8220;Today&#8217;s software-defined vehicles and immersive cockpits require highly reliable, ultralow-latency memory and storage to process massive amounts of data at the edge and enable time-critical near-instant decision-making,&#8221; Jacobs added.&nbsp;
According to&nbsp;<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, MU stock has gained over 93% in the past year. Investors can gain exposure to the stock via REX FANG &amp; Innovation Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074737/MU-3.png" alt="" class="wp-image-285578" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074737/MU-3.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/10074737/MU-3-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Price Action: MU shares are trading lower by 2.05% to $120.12 premarket on the last check Wednesday; while QCOM shares closed higher by 1.12% to $175.57 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Tech Giants Micron, Qualcomm Ink Pct To Power AI In Vehicles

Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) introduced the automotive-grade Micron 4150AT SSD, marking a significant advancement in storage technology for <a href="https://www.benzinga.com/pressreleases/24/04/g38154671/micron-debuts-worlds-first-quad-port-ssd-to-accelerate-data-rich-autonomous-and-ai-enabled-vehicle" target="_blank" rel="noreferrer noopener">software-defined intelligent vehicles</a>. 
As the world&#8217;s first quad-port SSD, this innovation enables connectivity with up to four systems on chips (SoCs), facilitating centralized storage that enhances performance and power efficiency for AI applications at the remote edge.&nbsp;
According to Michael Basca, Micron&#8217;s vice president of Embedded Products and Systems, this development was a response to the growing demands of AI and autonomous safety technologies, which require a new storage paradigm the Micron 4150AT SSD aims to address.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38029253/nvidia-broadcom-lead-ai-charge-bofa-analyst-tips-amd-micron-as-emerging-contenders-" rel="noreferrer noopener">Nvidia, Broadcom Lead AI Charge: BofA Analyst Tips AMD, Micron as Emerging Contenders in Explosive Market Growth</a>
The 4150AT SSD, designed to meet the complex demands of intelligent vehicles, offers enterprise-class speeds. It allows for efficient data management from multiple SoCs simultaneously, which is essential for vehicles tasked with multitasking across systems like ADAS and IVI.&nbsp;
The SSD includes multi-port capability for unmatched flexibility, efficient multi-host workload management, enhanced security through virtualization, customizable endurance modes for varied data requirements, and a design that meets the automotive industry&#8217;s rigorous standards.
Micron notified several clients about plans to raise the prices of its DRAM and SSD products by more than 25% in the second quarter, Digitimes <a href="https://www.digitimes.com/news/a20240408PD224/dram-memory-module-micron-nand-flash-ssd.html#:~:text=Multiple%20clients%20have%20been%20informed,sources%20at%20memory%20module%20houses." target="_blank" rel="noreferrer noopener">cited </a>sources at memory module houses. 
In 2023, analysts expected&nbsp;<a target="_blank" href="https://www.benzinga.com/news/23/09/34828125/tailwinds-ahead-for-micron-analysts-gauge-the-impact-of-dram-inventory-samsungs-supply-cuts-and-ssd" rel="noreferrer noopener">DRAM contract pricing</a>&nbsp;to decline to moderate from the December quarter with a correction in the elevated inventory at data center customers. They expected stable pricing in most end markets for SSDs
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38148096/microns-high-bandwidth-memory-spells-profit-potential-says-analyst-who-projects-18-" target="_blank" rel="noreferrer noopener">Analysts favored Micron&#8217;s</a> HBM3E for its superior thermal and power efficiency over competitors like SK Hynix and Samsung, particularly its 30% lower power consumption compared to SK Hynix and advancements over Samsung, which was experiencing delays. Predicting Micron&#8217;s dominance in the HBM market and a potential to surpass $1 billion in HBM revenues by calendar year 2024, analysts regarded Micron as a formidable force in the semiconductor industry.
Micron stock gained over 93% in the past 12 months. Investors can gain exposure to the stock via REX FANG &amp; Innovation Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action: MU shares traded lower by 0.11% at $122.82 at publication Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37944859/microns-strategic-moves-in-ai-and-memory-tech-signal-strong-market-position-and-future-gains-analyst" rel="noreferrer noopener">Micron&#8217;s Strategic Moves in AI and Memory Tech Signal Strong Market Position and Future Gains, Analyst Says</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Micron Unveils Quad-Port SSD For Next-Gen Intelligent Vehicles

Micron Technology, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares are&nbsp;<a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">trading higher on Wednesday.</a>
The tech behemoth reported that following the earthquake that struck Taiwan on April 3, 2024, all of Micron&#8217;s team members have been&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38067568/micron-provides-update-following-earthquake-in-taiwan" rel="noreferrer noopener">accounted for and reported to be safe</a>.&nbsp;
However, the company added that it is still evaluating the impact to its operations and supply chain.
<a target="_blank" href="https://www.benzinga.com/government/24/03/37889483/semiconductor-chip-inflation-risk-taiwan-semi-to-face-up-to-25-electricity-tariff-hike-in-taiwan" rel="noreferrer noopener">Taiwan</a>&nbsp;was hit by a powerful 7.2 magnitude earthquake on Wednesday, the most significant seismic event in the last 25 years.&nbsp;
&#8220;We will communicate changes to delivery commitments to our customers after this evaluation is completed,&#8221; the company said in a press release.
On the flip side, the earthquake hit&nbsp;Taiwan Semiconductor Manufacturing Company Ltd.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) hard, in response to which the firm promptly evacuated its factories,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38066682/whats-going-on-with-key-nvidia-supplier-taiwan-semi-stock-wednesday" rel="noreferrer noopener">threatening production capabilities.</a>
The earthquake struck at 8 a.m. local time, with its epicenter in Hualien, a mountainous and lightly populated county in eastern Taiwan.&nbsp;
The Taiwan fire department reported one death, likely caused by falling debris, and more than 50 people were injured.&nbsp;
Damage to several buildings was reported, with some individuals trapped inside.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, MU stock has gained over 112% in the past year. Investors can gain exposure to the stock via REX FANG &amp; Innovation Equity Premium Income ETF(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action: MU shares are trading higher by 3.8% to $127.42 on the last check Wednesday. 
Photo via Shutterstock

What's Going On With Micron Stock Following Taiwan Earthquake?

Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) CEO Sanjay Mehrotra met with China&#8217;s Minister of Commerce, Wang Wentao, on March 23 to discuss Micron&#8217;s future development within China.&nbsp;
During the meeting, Wang Wentao expressed the Chinese government&#8217;s support for Micron, encouraging the company to deepen its operations and expedite new investment projects in the country.&nbsp;
Mehrotra outlined Micron&#8217;s ongoing business endeavors and upcoming investment initiatives in China, committing to comply with Chinese laws and regulations, Technode&nbsp;<a target="_blank" href="https://technode.com/2024/03/26/us-chip-firm-micron-plans-to-expand-investment-in-china/" rel="noreferrer noopener">reports</a>.
Additionally, he announced plans to enhance Micron&#8217;s investments to cater to the needs of Chinese consumers more effectively.&nbsp;
This meeting marks Mehrotra&#8217;s second visit to China in almost six months, following an earlier discussion on November 1, 2023, showcasing the ongoing dialogue and Micron&#8217;s commitment to expanding its presence in the Chinese market.
<a target="_blank" href="https://www.benzinga.com/news/24/03/37907782/amd-intel-face-setback-as-china-moves-to-ditch-their-chips-microsoft-windows-in-state-computers" rel="noreferrer noopener">Recent reports indicated</a>&nbsp;that China had introduced new guidelines to eliminate U.S. microprocessors from&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) in government computers and servers, favoring domestic technology.
These procurement regulations are part of China&#8217;s effort to substitute foreign technologies with local innovations. They include plans to replace&nbsp;Microsoft Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Windows operating system and foreign database software with Chinese alternatives.
In 2023, Chinese chipmaker Yangtze Memory Technologies Co initiated a lawsuit against its American counterpart, Micron, accusing it of v<a target="_blank" href="https://www.benzinga.com/government/23/11/35750822/micron-faces-legal-battle-and-revenue-dip-as-us-china-tensions-escalate" rel="noreferrer noopener">iolating eight patents</a>.
The lawsuit alleged that Micron was using Yangtze Memory Technologies&#8217; patented technology to maintain its competitive edge and secure its market position without adequately compensating for using these patented inventions.
Micron, known for manufacturing DRAM and NAND flash memory chips, competes with global giants such as South Korea&#8217;s Samsung Electronics Co, SK Hynix, and Japan&#8217;s Kioxia.
Micron stock gained over 101% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Mizuho analyst Vijay Rakesh reiterated Micron with a Buy and raised the price target from $124 to $130.
Price Action:&nbsp;MU shares closed higher by 1.43% at $118.80 on the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Micron

Micron's Strategic Moves in China, CEO Mehrotra's Talks and Expansion Plans Amid Shift from US Tech

Rosenblatt&nbsp;analyst Hans Mosesmann reiterated&nbsp;Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with a Buy and a&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MU/analyst-ratings" rel="noreferrer noopener">$140 price target</a>.
The analyst expects Micron to deliver a beat and raise on Wednesday, March 20, on&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37784768/whats-going-on-with-micron-stock-monday" rel="noreferrer noopener">AI-driven segment demand</a>, a bottoming in the broader markets (recovery in the second half of calendar year 2024) amid the industry&#8217;s disciplined supply memory posture.
As the industry enters the most significant memory cycle, the setup is a narrative that will be fed this week at&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) GPU Technology Conference (GTC), given that AI compute platforms cannot scale without DRAM content and high-performance HBM, he said.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37651170/samsung-shifts-gears-with-new-chip-tech-to-compete-in-nvidias-ai-chip-dominance" rel="noreferrer noopener">Samsung Takes Steps To Revamp Chip Manufacturing To Align With Nvidia&#8217;s AI Requirements: Report (UPDATED)</a>
One of the more critical Micron-specific themes to watch is the company&#8217;s design momentum in HBM3E on performance and efficiency specifications unmatched by competitors, which he noted leading to double-digit market share.&nbsp;
Interestingly, Mosesmann noted the company&#8217;s HBM3E is capturing &#8220;sockets&#8221; exclusive to this round of new accelerator product ramps.
Micron remains the analyst&#8217;s top cyclical pick in the current memory cycle, which he noted will be one of the biggest in history, consistent with his Mother of All Cycles (MOAC) secular view.
Cantor Fitzgerald&nbsp;analyst C J Muse maintained Micron with an Overweight and raised the price target from $100 to $120.
Barclays&nbsp;analyst Tom O&#8217;Malley maintained Micron with an Overweight and raised the price target from $95 to $120.
The stock gained 65% last year. Analysts can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 2.32% at $93.55 on the last check Monday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37756497/microns-stock-soars-as-analysts-forecast-strong-ai-and-dram-driven-earnings" rel="noreferrer noopener">Micron Analysts Forecast Strong AI And DRAM-Driven Earnings</a>
Photo via Shutterstock

Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst

Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares are trading higher after&nbsp;Citigroup&nbsp;and&nbsp;TD Cowen&nbsp;analysts raised their price targets on the stock.
Citigroup analyst Christopher Danely reiterated Micron Technology with a Buy and raised the&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MU/analyst-ratings" rel="noreferrer noopener">price target from $95 to $150</a>.
Micron is scheduled to report its second-quarter fiscal 2024 results on March 20.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37651170/samsung-shifts-gears-with-new-chip-tech-to-compete-in-nvidias-ai-chip-dominance" rel="noreferrer noopener">Samsung Takes Steps To Revamp Chip Manufacturing To Align With Nvidia&#8217;s AI Requirements: Report (UPDATED)</a>
The analyst expects the company to post an upside to Consensus and increased guidance for the third quarter, given strong DRAM pricing and shipments of higher-priced, higher-margin, High Bandwidth Memory (HBM), which is shipping with&nbsp;Nvidia Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) AI systems.&nbsp;
Danely raised his fiscal 2025 EPS estimate on Micron from $6.38 to $6.65 and boosted his price target from $95 to $150, or 15X his 2026 EPS estimate of $10.03. This is a 50% premium to Micron&#8217;s historic range. 
Still, he noted Micron stock should get a premium given increasing AI exposure, and other AI-exposed stocks such as Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) have seen a 100% increase in their multiples. Micron remains his top pick and Buy-rated.
TD Cowen&nbsp;analyst Krish Sankar maintained Micron Technology with an Outperform and raised the price target from $100 to $120.
Investors can gain exposure to Micron via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37631680/micron-tech-poised-for-strong-earnings-amid-surge-in-chip-pricing-analyst" rel="noreferrer noopener">Micron Tech Poised for Strong Earnings Amid Surge in Chip Pricing: Analyst</a>
Price Action: MU shares traded higher by 2.32% at $93.55 on the last check Friday.
Photo via Shutterstock

Micron's Stock Soars As Analysts Forecast Strong AI And DRAM-Driven Earnings

Wedbush&nbsp;analyst Matt Bryson maintained&nbsp;Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with an Outperform and raised the&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MU/analyst-ratings" rel="noreferrer noopener">price target from $95 to $103</a>.
Micron looks to report its quarterly earnings on March 20, with expectations set high due to the strong movement in DRAM and NAND prices.&nbsp;
The analyst said the company will likely exceed its initial guidance, bolstered by higher retail, spot, and forward contract prices than previously forecasted.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37521115/nvidia-tops-in-popularity-among-s-p-500-semiconductor-stocks-analyst-sees-room-for-growth" rel="noreferrer noopener">Nvidia Tops in Popularity Among S&amp;P 500 Semiconductor Stocks, Analyst Sees Room for Growth</a>
This optimism is reflected in adjusted estimates for the February quarter, where DRAM and NAND pricing will likely see a significant rise, with DRAM contract Average Selling Prices (ASPs) predicted to increase by nearly 20% in the first quarter and NAND contracts performing even more vital, he said.
The improved pricing environment suggests Micron&#8217;s financial results could reach the higher end of its guidance, possibly even surpassing it. With contract pricing expected to rise by double digits again for both NAND and DRAM in the May quarter, projections for this period have also been adjusted upwards, Bryson stated.&nbsp;
Although there&#8217;s a cautious approach to the price assumptions for the second half of the year and beyond, anticipating that the current accelerated growth may not be sustained, Micron&#8217;s fiscal 2025 Earnings Per Share (EPS) estimates have nonetheless seen a modest increase, he flagged.
Micron&#8217;s gross margin (GM) assumptions for DRAM have been adjusted upwards into the mid-50% range, reflecting an improvement over the last industry cycle in 2021 but not reaching the low 60% levels seen in 2018, Bryson pointed out.&nbsp;
This cautious optimism is underpinned by limited recent investments in standard DRAM and NAND production, which may herald a robust memory cycle, and Micron&#8217;s enhanced competitive position, likely leading the industry in DRAM cost efficiency and matching peers in NAND quality.&nbsp;
He added that the potential success in ramping High Bandwidth Memory (HBM3e) could also contribute to higher Average Selling Prices (ASPs) and margins.
Bryson&#8217;s re-rating reflected a conservative but optimistic view of Micron&#8217;s position as a commodity component supplier at mid to peak cycle earnings.
Micron&#8217;s strategic advancements in High Bandwidth Memory (HBM) are expected to be a focal point, with the company already in production with 8-layer HBM3e and sampling 12-layer parts, he said.&nbsp;
This development aligns with Micron&#8217;s ambitious plans for HBM, which are anticipated to boost shipments this year significantly.&nbsp;
Moreover, the analyst added that Micron&#8217;s successful penetration into enterprise/cloud accounts and early leadership in 200+ layer NAND production positioned it well to gain market share in upcoming cloud designs despite the competitive landscape.
In conclusion, despite potential moderation in PC and handset growth expectations for the upcoming year, Micron&#8217;s strategy and competitive positioning, particularly in DRAM and NAND technologies, suggest a strong outlook per the analyst.&nbsp;
Bryson projects second-quarter revenue and EPS of $5.36 billion (prior $5.3 billion) and $(0.21) (prior loss of $(0.28)).
Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and&nbsp;First Trust Nasdaq Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) can help investors gain exposure to Micron.
Price Action:&nbsp;MU shares traded higher by 2.30% at $96.68 on the last check Tuesday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37454338/micron-entangled-in-corporate-espionage-drama-shifts-strategy-amid-us-china-tensions" rel="noreferrer noopener">Micron Entangled in Corporate Espionage Drama, Shifts Strategy Amid US-China Tensions</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Micron Tech Poised for Strong Earnings Amid Surge in Chip Pricing: Analyst

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