daz999999999
09-28 11:46
$MU$  


Micron Earnings Will be a Key Catalyst

The biggest catalyst for the DRAM ETF will be the upcoming Micron earnings, which will provide more color about the industry. These earnings are important because it is the third-biggest player in the HBM industry after SK Hynix and Samsung Electronics. It is also the biggest company in the fund.

Estimates are that Micron Technology’s revenue and profitability growth accelerated in the fourth quarter. The average estimate is that its revenue surged to $51 billion in the quarter, up by 365% from a year earlier. Its earnings-per-share, on the other hand, is expected to move to $3 in Q4’25 to $31.59 last quarter.

Micron’s earnings will likely come in well above these estimates. Still, the stock’s reaction will hinge on its forward guidance, which should offer more clarity on the business and the broader sector. A strong report could push the stock higher, which in turn would lift the DRAM ETF.

However, recently, technology companies like Oracle (NYSE:ORCL) and Broadcom (NASDAQ:AVGO) have dropped after publishing strong results.

Solidigm Potential IPO

Another potential catalyst that may boost the DRAM ETF is the upcoming Solidigm IPO, which is expected to value it at over $150 billion. Such an IPO would have an impact because it is owned by SK Hynix, the third-biggest company in the fund.

Solidigm is a major part in SK Hynix’s portfolio, where it makes high-capacity solid-state drivers (SSD) used mostly in servers and data centers. A successful IPO would be bullish for SK Hynix and the DRAM ETF.

The other potential catalyst is Kioxia Holdings, which is planning a $10 billion listing in the United States, mirroring what SK Hynix did in July.

At the same time, there are signs that these companies, despite their strong revenue growth, are highly undervalued. Micron has a forward price-to-earnings ratio of 14, while SanDisk has a meagre multiple of 8.3. Samsung Electronics has a multiple of 15, while SK Hynix has 9.2.



From Leaders to Laggards — Are Memory Stocks Waiting on Micron?
Memory gave back Wednesday what it made Tuesday: SanDisk -3.73% to $1,816.57, SK Hynix -3.12% to $189.28, Micron -2.22% to $1,071.88. Rising yields hit high-multiple assets first, and memory had run hardest. The test is next week: Micron reports after the close on Sept 30 ET, with the quarter's revenue and gross margin, HBM4 shipments, order coverage and the 2027 outlook in focus. Bulls say price hikes and locked orders predate the print, so it only confirms them; bears say prices already assume a strong 2027 — one soft notch costs more than 3%. Would a strong print end the pullback?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment