Reported 8 months ago
Memory giant Micron is set to announce its quarterly report on June 26, and has become an AI star stock since supplying high-bandwidth memory (HBM) to Nvidia. Micron's stock price has surged nearly 70% this year, increasing its market value by $63.626 billion to $154.522 billion. Analysts expect Micron to discuss demand improvement, tight industry supply, rising prices, and positive outlook due to their HBM supply to Nvidia and other AI chip manufacturers. The memory market is experiencing increased interest in DRAM and HBM due to growing AI application demands, and FOMO effect is boosting Micron's stock further. Micron's profitability is estimated to reach $20 per share in 2025 and 2026, with HBM contributing $3 directly. The constrained supply of HBM is expected to drive up DRAM prices, further boosting Micron's revenue. However, Micron's TSV yield is estimated to be around 40%, while SK Hynix's is 60% and Samsung's is better at about 60%, although facing thermal issues. The long-term forecast for the HBM market anticipates a 95% compound annual growth rate between 2024 and 2026.
Source: YAHOO