We recently published a list of 10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call. In this article, we are going to take a look at where Micron Technology, Inc. (NASDAQ:MU) stands against other stocks that could skyrocket after Jensen Huang’s earnings call.
DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
A close-up view of a computer motherboard with integrated semiconductor chips.
Micron Technology, Inc. (NASDAQ:MU)
Micron Technology, Inc. is a storage and memory products developer, designer, manufacturer, and seller. It operates in four segments; Mobile Business Unit, Storage Business Unit, Compute and Networking Business Unit, and Embedded Business Unit. The company distributes its products through independent sales representatives, retailers, direct sales forces, and distributors. The stock got attention recently after Citi maintained its Buy rating and target price of $150 after the company’s 3rd quarter update.
During the Wolfe conference, the company presented important updates related to its FQ3 performance. It lowered its expected gross margins by a few percentage points. According to the CFO, the company expects to clear its current inventory by spring.
Micron saw a significant increase in its revenue as it grew by 84% YoY. The operating income and gross profits also increased. This significant upswing in earnings is supported by strong demand for chips. Though the stock is struggling currently, its unique moat as a supplier of memory products to the semiconductor industry makes it an attractive buy. Currently, GPUs are constrained by bandwidth which means any technological innovation on Micron’s part could significantly alter the future of computing.
Overall, MU ranks 6th on our list of stocks that could skyrocket after Jensen Huang’s earnings call. While we acknowledge the potential of MU as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.