March 20 - Citi analysts predict positive effects on Micron Technology (MU, Financial) because Nvidia (NVDA, Financial) planned to increase high-bandwidth memory usage within its next GPU lineup. The new Rubin chip contains 288GB of HBM4 DRAM which exceeds the Blackwell generation by 50%, as Citi analyst Christopher Danely pointed out in his client note. The upgraded HBM technology brings positive news to Micron since its gross margin average reached 70%, he said further.
Moreover, a research firm, TrendForce, also increased Micron DRAM price expectations for the second quarter because inventory management has improved which will lead to 3% to 8% sequential price growth. The analyst Danely stated that these market trends create positive conditions for price increases beginning in Q2 2025. Analysts project Micron Technologies to release its quarterly earnings at $1.42 per share while forecasting revenues to reach $7.9 billion today after market hours.
The semiconductor sector holds its attention on Micron as the company is about to report its Q2 results which might accelerate market gains even further.
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