Samsung launches a hostile attack on Micron shares!
Samsung has made a significant stride in the high-bandwidth memory (HBM) market, qualifying its fifth generation of HBM3E memory chips with NVIDIA. This success, according to reports, is encroaching on Micron's turf, a market that has been booming recently.
The AI revolution has been a primary driver of Samsung's success in the HBM market, posing a significant challenge to Micron. Samsung's achievement could potentially put pressure on Micron's pricing power, sparking concerns about a price war in the HBM market due to Samsung's potential aggressive pricing strategy.
Wells Fargo described Samsung's success as "an additional negative for HBM pricing." This development could potentially weaken Micron's position in the market, raising questions about its ability to meet the strict requirements for the next HBM4 generation.
Despite these concerns, Wall Street experts remain surprisingly bullish about Micron. Several investment banks have recently raised their price targets for Micron. Wedbush, Rosenblatt Securities, and Susquehanna see the stock at $200, while TD Cowen and Wolfe Research target $180. Barclays has raised its target to $175.
Micron has already announced that its HBM capacities for 2025 are completely sold out, and discussions for 2026 are underway. However, the crucial question will be whether Micron can maintain its pricing power against a new competitor like Samsung.
As for Micron's financial performance, consensus estimates for the company's fourth-quarter results are $11.1 billion in revenue and $2.87 in earnings per share. Micron's fourth-quarter results for the 2025 fiscal year will be reported on September 23. For more insights on whether investors should buy or sell Micron, recent analysis from September 19 provides guidance.
It is important to note that the search results do not provide the name of the analyst who analyzed Micron's latest numbers on September 19, 2021, nor any specific recommendation related to that date. Nonetheless, the link to read more about whether Micron: Buy or Sell? is provided for further understanding.
In conclusion, Samsung's success in the HBM market is a significant development that could potentially impact Micron's position. The question of whether investors should sell immediately or buy Micron remains open, with Wall Street experts expressing a generally bullish outlook for the company. However, the crucial challenge for Micron will be maintaining its pricing power against a new competitor like Samsung.
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