Micron Technology (MU) and Intel (INTC) are experiencing significant stock gains, fueled by heightened demand in the semiconductor sector, particularly around AI infrastructure. On a single day, Intel’s shares rose over 14% following news of a potential partnership with Apple, while Micron’s stock increased nearly 13% after announcing the readiness to ship new SSDs. Year-to-date, Micron shares have more than doubled, with a fiscal Q2 revenue of nearly $24 billion—almost triple from the same quarter last year.
Micron’s non-GAAP EPS surged to $12.20, a 680% increase year-over-year, and gross margins reached a record near 75%. The company expects fiscal Q3 revenue around $33.5 billion. Meanwhile, Intel’s stock has risen approximately 166% this year, driven by a Q1 earnings report that revealed $13.6 billion in revenue—exceeding expectations by over $1 billion—and an adjusted EPS of $0.29. The Data Center and AI segment saw a 22% revenue growth, and Intel’s strategic partnerships with companies like Tesla indicate a positive turnaround.
Despite the strong performance, potential challenges loom for both companies. Micron trades at around 26x trailing earnings, while Intel’s forward P/E is near 100x. Analysts stress the importance of upcoming earnings reports, with Micron’s fiscal Q3 expected in late June and Intel’s Q2 likely in July, to determine the durability of their performances amid historical cyclical patterns.
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