In the realm of stock market darlings, Nvidia (NVDA) has dazzled investors with its phenomenal revenue growth this year. However, according to insights from S&P Global Market Intelligence and MarketSurge reported by Investors.com, Nvidia is set to take a backseat as memory-chip maker Micron Technology (MU) is projected to outstrip it with an astounding 84.2% revenue growth in the current fourth quarter. This forecast positions Micron just ahead of Nvidia’s expected 72.1% quarterly revenue surge, highlighting a narrative of growth that extends beyond the AI giant.
Micron’s rise isn’t just a flash in the pan; its chips are becoming crucial for data-intensive AI learning models, driving the company’s revenue expectations to $8.7 billion for the year. This growth trajectory not only underscores Micron’s pivotal role in the AI sector but also marks it as the fastest-growing company in terms of revenue among S&P 500 (^GSPC) constituents for the fourth quarter.
The company’s future looks even brighter with analysts predicting a 588% increase in earnings per share for 2025, showcasing Micron’s potential for explosive growth. However, despite these forecasts, investor sentiment towards Micron remains cautious, as evidenced by its RS Rating of 48 and a modest year-to-date stock increase of 17%. This hesitancy might stem from Micron’s history of uneven earnings growth, but the current projections suggest a possible turnaround.
The broader context of the S&P 500 also paints a picture of robust growth, with expectations of a 4.7% revenue increase for the quarter, as per FactSet. This growth isn’t confined to just the tech sector’s usual suspects; other companies like Seagate (STX) and Western Digital (WDC) are also anticipated to see significant revenue jumps, albeit they are less directly associated with AI advancements.
Micron’s projected performance this quarter is a stark reminder that while Nvidia has been the AI and tech sector’s poster child, the landscape is broadening. Investors looking for the next growth story might find Micron’s trajectory compelling, especially as it positions itself as a critical component in the expanding AI infrastructure. This scenario challenges the notion that Nvidia is the only game in town for those seeking growth within the S&P 500, offering a diversified look at where significant growth might emerge in the tech sector.
Price Action: Micron shares experienced a slight uptick on Tuesday, closing at $100.20 with a 0.36% increase. Despite this modest gain, the stock has witnessed a 5.4% decline in the past month. However, it is worth noting that Micron’s year-over-year performance remains positive, with a 35% growth from the previous year.
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