Optimistic forecasts from U.S. memory giant Micron fueled gains on the Nasdaq, while solid earnings strengthened confidence that the AI trend remains robust. Analysts at Cantor Fitzgerald and Deutsche Bank raised their price target for Micron (MU.US) to $200 per share, citing AI infrastructure as the key driver. Goldman Sachs set its target much more defensivly at $145 per share (more than 10% below Micron share price). Additionally, shares of Chinese tech giant Alibaba rose after forecasts of AI infrastructure spending were lifted above the initially estimated $50 billion. This reinforces the market’s belief that Chinese companies are “catching up” with their U.S. counterparts.
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Micron Technology presented forecasts far exceeding market expectations – the company projects $12.5 billion in Q1 revenue, compared with analysts’ estimates of $11.9 billion. Earnings per share are expected at $3.75, well above the consensus of $3.05.
- Growth is being driven by rising demand for artificial intelligence solutions, particularly HBM (High Bandwidth Memory), which is essential for powering AI chips and systems.
- CEO Sanjay Mehrotra emphasized that Micron is entering fiscal 2026 “with strong momentum” and the “most competitive portfolio in its history.” It remains the only memory manufacturer headquartered in the U.S.
- In Q4 (ended August 28), the company reported a 46% revenue increase to $11.3 billion, with EPS of $3.03, surpassing expectations.
The stock gained over 3% after the results and has nearly doubled since the start of the year, significantly outperforming peers thanks to the AI boom and growing demand from the data center sector, which now accounts for more than half of the group’s revenue. The company is likely to reach a new record above $170 per share today.
Source: xStation5
European ADRs of Alibaba are up nearly 8% today, trading at their highest levels since autumn 2021.
Source: xStation5
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