Micron Technology’s Market Surge and Outlook
Micron Technology (NASDAQ: MU) has seen its share price climb over 261% in the past six months, now approaching a market cap of $500 billion, propelled by increased demand for memory chips crucial to AI infrastructure. The company reported a gross margin of 57% in its fiscal first quarter, a significant rise from previous quarters.
Despite the positive momentum, Micron faces challenges in sustaining this growth due to industry competition and the cyclical nature of its market. Management anticipates tight supply conditions will linger through 2026, impacting pricing power as supply and demand stabilize.
Alibaba’s Growth Amidst E-commerce Challenges
Alibaba Group (NYSE: BABA) is experiencing robust growth in its cloud computing division, with capital expenditures reaching $4.4 billion in Q3, up from $2.5 billion year-over-year, and a year-on-year increase in cloud revenue of 34%. However, challenges in its e-commerce sector, particularly related to “quick commerce,” have led to profitability pressures.
Despite these challenges, analysts project a 40% earnings per share growth for Alibaba next year, supported by improved unit economics in quick commerce and continued strength in cloud computing.
