NVIDIA Corp’s earnings report Wednesday evening could have a significant impact on Micron Technology Inc MU, a leading memory chipmaker heavily reliant on AI-driven demand for its DRAM and NAND products.
Nvidia's dominance in the AI market has positioned it as a key driver of high-performance computing, where Micron's advanced memory solutions are indispensable. Nvidia's results and guidance will likely offer critical signals for Micron's growth trajectory.
What To Know: Micron benefits directly from Nvidia's surging AI-related sales, as memory chips are essential for training and running the large-scale models that underpin generative AI technologies.
A strong Nvidia report, with robust demand for AI GPUs, could indicate continued tailwinds for Micron, reinforcing expectations of higher shipments and pricing for its high-bandwidth memory (HBM) and next-generation DRAM.
Conversely, if Nvidia's earnings or outlook disappoints, it could signal slowing AI infrastructure investments, dampening demand for Micron's premium products. Investors may then question the sustainability of the AI-driven recovery Micron has counted on to rebound from a cyclical downturn in memory markets.
For Micron, Nvidia's earnings extend beyond an industry indicator; they serve as a vital barometer for gauging the trajectory of AI-related memory demand and the company's ability to ride the sector's growth wave.
Read Also: Target Q3 Earnings: Supply Chain Chaos Hits Bottomline, Slashes Annual Profit Outlook, Stock Tanks
How To Buy MU Stock
By now you're likely curious about how to participate in the market for Micron Technology – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Micron Technology, which is trading at $98.16 as of publishing time, $100 would buy you 1.02 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, MU has a 52-week high of $157.54 and a 52-week low of $72.93.
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