Shares of Micron (NASDAQ: MU | MU Price Prediction) are up about 14%, or by $31 this morning.
All thanks to strong earnings. EPS of $4.78 beat by 82 cents. Revenue of $13.64 billion beat by $760 million. Moving forward, the company expects to earn between $8.22 and $8.62 per share, with revenue expected to be between $18.3 billion and $19.1 billion for the second quarter. Analysts were looking for $4.78 per share on revenue of $14.3 billion.
“Our Q2 outlook reflects substantial records across revenue, gross margin, EPS, and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026,” added Sanjay Mehrotra, Chairman, President, and CEO of Micron, as quoted in an earnings release.
Fueling further upside, Micron says supply-demand issues could create a $100 billion high-bandwidth memory (HBM) market by 2028 – a milestone projected to arrive two years before the company’s previous outlook.
Micron also declared a dividend of $0.115 per share, which is payable on January 14 to shareholders of record as of December 29.
Broadcom
Shares of Broadcom (NASDAQ: AVGO) took a massive hit after management warned of margin pressures. However, as I noted the other day, analysts at Morgan Stanley still expect AVGO to see strong growth moving forward.
With an overweight rating on AVGO, Morgan Stanley has a $462 price target on AVGO. They also believe the latest pullback is an overreaction.
Analysts at Bank of America have a $500 price target with a buy rating. Goldman Sachs has a $450 price target with a buy rating. UBS has a $472 price target with a buy rating. And Bernstein has a $475 price target with an outperform rating.
This morning, AVGO is gaining lost ground after UBS added that it’s time to buy the dip. Technically, AVGO is severely oversold at $326.02. It’s also overextended on RSI, MACD, and Williams’ %R. From its last traded price of $326.02, we’d like to see it rally back to $400.
Advanced Micro Devices
Shares of Advanced Micro Devices (NASDAQ: AMD) are up about 3%, or by $6 a share, in premarket. Analysts at Piper Sandler have an overweight rating on the stock with a price target of $280 a share. The analysts are bullish on the stock ahead of its Helios launch. Helios is a new, open, rack-scale AI platform designed for AI training and inference.
Technically, AMD is also oversold on RSI, MACD, and Williams’ %R. From its last traded price of $198.11, we’d like to see the tech giant soar back to $270 initially.
Recent AMD earnings have also been solid. EPS OF $1.20 beat by three cents. Revenue of $9.25 billion, up 35.6% year over year, beat by $500 million. Moving forward, AMD expects fourth-quarter sales to be between $9.3 billion and $9.9 billion, with the mid-point of $9.6 billion above the $9.21 billion estimate.
“Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth,” said Dr. Lisa Su, AMD chair and CEO, as quoted in an earnings release.
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