Shares of Micron Technology (NASDAQ: MU | MU Price Prediction) are up $8.31, starting the year off big.
Fueling upside, Micron says supply-demand issues could create a $100 billion high-bandwidth memory (HBM) market by 2028 – a milestone projected to arrive two years before the company’s previous outlook.
Plus, as noted by Seeking Alpha, “High-Bandwidth Memory is part of AI infrastructure stacks and runs concurrently with Graphics Processing Units. Since HBM is in short supply, businesses producing it are seeing rising prices.”
Micron also posted strong earnings and guidance.
EPS of $4.78 beat by 82 cents. Revenue of $13.64 billion beat by $760 million. Moving forward, the company expects to earn between $8.22 and $8.62 per share, with revenue expected to be between $18.3 billion and $19.1 billion for the second quarter.
SanDisk Corp.
Shares of SanDisk (NASDAQ: SNDK) are starting the year off strong, too.
Up about $6.25 in premarket, it’s also running on the AI and HBM story, just like Micron. It’s also likely to benefit from a “historic upcycle” thanks to the AI boom, according to analysts at BNP Paribas. “With consumer DRAM and NAND TLC spot prices increasing 408% and 165% Y/Y in November, respectively, we believe we are entering a historic DRAM and NAND upcycle that could span 2026,” said the firm, as quoted by Seeking Alpha.
In addition, in its most recent quarter, SNDK posted adjusted EPS of $1.22, which beat estimates by 33 cents. Revenue of $2.31 billion, up 22.6% year over year, beat by $160 million. Analysts were expecting adjusted EPS of 88 cents on revenue of $2.15 billion.
Moving forward, SNDK expects to earn between $3 and $3.40 per share, adjusted. That’s above expectations for $1.82. Revenue is expected to range from $2.55 billion to $2.65 billion, which is also above expectations for $2.36 billion.
Baidu Inc.
Baidu (NASDAQ: BIDU) is up $14.35, or about 11%, in premarket.
Fueling upside, analysts at Jefferies just raised their price target on BIDU to $181 from $159 with a buy rating. All after Baidu announced the spin-off of its Kunlunxin stock, with plans for a separate listing on the Stock Exchange of Hong Kong.
As noted by Seeking Alpha, “The goal of this spinoff is to highlight Kunlunxin’s value, attract AI chip sector investors, and improve its market presence. Additionally, it aims to open new financing avenues and align management responsibilities with performance, further unlocking the value of Baidu’s AI-driven businesses.”
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