Here’s How Micron’s (MU) Weakness Could Boost Nvidia (NVDA) And Broadcom (AVGO)

Insider Monkey12-20 20:34

Micron’s earnings report this week has again raised questions about the usefulness of the AI spending we are seeing from many tech companies. MU has cautioned about low demand for its memory chips, ...

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MU has cautioned about low demand for its memory chips, ...</p>\n\n<a href=\"https://finance.yahoo.com/news/micron-mu-weakness-could-boost-123450219.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MU","symbol_name":"美光科技","start_time":0,"source_url":"https://finance.yahoo.com/news/micron-mu-weakness-could-boost-123450219.html","article_id":"2492443175","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZRoQM1Zhf4ZjIbPuVmMm.A--~B/aD02OTQ7dz02OTU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/insidermonkey.com/f72133c65098a511abe62c9ff7692346"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492443175","pubTimestamp":1734698090,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Micron’s earnings report this week has again raised questions about the usefulness of the AI spending we are seeing from many tech companies. MU has cautioned about low demand for its memory chips, lowering the guidance for the upcoming quarter. If Micron sees a low demand for memory chips, where does that put AI chipmakers?To understand the relationship between Micron's memory chips and AI GPU makers, let’s first see where they fit in a data center. Micron makes DRAM and NAND storage devices, both of which are crucial in data storage in a data center. With the emergence of AI, the demand for these has gone up, in addition to the demand for High Bandwidth Memory . But this demand isn’t broad-based. It is mainly concentrated in AI applications. The demand in other segments like PC, smartphones, and other consumer devices has been down and is what’s weighing down the stock. This demand is responsible for over 50% of their revenue, so the stock plunge makes sense.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MU":"美光科技","SGXZ99366536.SGD":"United Global Innovation A Acc SGD-H","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0256863902.USD":"ALLIANZ US EQUITY \"AT\" (USD) ACC","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1127390331.HKD":"AB SICAV I - ALL MARKET INCOME PORTFOLIO \"A\" (HKD) ACC","LU2461242641.AUD":"WELLINGTON US QUALITY GROWTH \"A\" (AUDHDG) ACC","NVDS":"Tradr 1.5X Short NVDA Daily ETF","BK4566":"资本集团","LU1623119135.USD":"Natixis Mirova Global Sustainable Equity R-NPF/A USD","LU0308772762.SGD":"Blackrock Global Allocation A2 SGD-H","LU1935042991.SGD":"MANULIFE GF GLOBAL MULTI-ASSET DIVERSIFIED INCOME  \"AA\" (SGDHDG) INC","3NVD.UK":"LS 3X NVIDIA","LU2083900584.USD":"HSBC GIF US INCOME FOCUSED \"AM2\" (USD) INC","LU2322448957.HKD":"ALLIANZ GLOBAL INTELLIGENT CITIES INCOME \"AMG\" (HKD) INC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","SNVD.UK":"LS -1X NVIDIA","LU0106831901.USD":"贝莱德世界金融基金A2","NVDD":"Direxion Daily NVDA Bear 1X Shares","NVD":"GraniteShares 2x Short NVDA Daily ETF","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC","LU0965508806.USD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (USD) INC","NVD2.UK":"2X NVIDIA ETP","AVGOP":"BROADCOM INC PFD SER A 22","NVD3.UK":"LS 3X NVIDIA","SG9999015358.SGD":"United Income Focus Trust Dis SGD-H","AVGO":"博通","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","NVDS.UK":"LS -1X NVIDIA","HBM":"HudBay Minerals Inc","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU0251132253.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) ACC","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","LU2111349929.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (HKD) INC","NVIW.SI":"NVDA 3xLongSG261006","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","LU1642822529.SGD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"A\" (SGD) ACC","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","LU2237443895.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) ACC","NVDA":"英伟达","2NVD.UK":"2X NVIDIA ETP","LU1670710661.SGD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (SGD) INC","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC"},"translate_title":"以下是美光科技(MU)的疲软如何提振英伟达(NVDA)和博通(AVGO)","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVGO":1,"AVGOP":1,"HBM":1,"MU":1,"NVDA":1,"NVDS":0.6,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDD":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"NVIW.SI":0.6,"SNVD.UK":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"Micron’s earnings report this week has again raised questions about the usefulness of the AI spending we are seeing from many tech companies. MU has cautioned about low demand for its memory chips, lowering the guidance for the upcoming quarter. If Micron sees a low demand for memory chips, where does that put AI chipmakers?\n\nTo understand the relationship between Micron's memory chips and AI GPU makers, let’s first see where they fit in a data center. Micron makes DRAM and NAND storage devices, both of which are crucial in data storage in a data center. With the emergence of AI, the demand for these has gone up, in addition to the demand for High Bandwidth Memory (HBM). But this demand isn’t broad-based. It is mainly concentrated in AI applications. The demand in other segments like PC, smartphones, and other consumer devices has been down and is what’s weighing down the stock. This demand is responsible for over 50% of their revenue, so the stock plunge makes sense.\nLet’s now see how Micron’s troubles impact Nvidia. Nvidia isn’t a memory manufacturer itself and designs the GPUs that go into data centers. If there is pressure on memory chip demand, it only means Nvidia can get these chips cheaper, thus helping them improve their margins. It also helps Nvidia make their products more affordable, ensuring even small businesses can adopt their tech. This wider adoption eventually strengthens Nvidia’s moat.\nBroadcom on the other hand is more diverse and therefore doesn’t rely on memory chips as much as Nvidia. However, it still benefits in networking equipment and storage controller segments, where memory chips are an important component.\nDespite the pessimism surrounding the Micron stock, traders would love to play the volatility until the demand settles in mid-2025. The company is the recipient of CHIPS ACT funding and its Idaho fab could come online within a year and a half. This is the first new memory manufacturing fab built in the US in 20 years. So Micron is bringing manufacturing back to the US and helping the country reduce reliance on foreign players for something as critical as semiconductors.\nMicron is 20th on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 107 hedge fund portfolios held MU at the end of the third quarter which was 120 in the previous quarter. While we acknowledge the potential of MU as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.\nREAD NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.\nDisclosure: None. This article was originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492443175"}