INTC, MU, SNDK Stocks Jumped To 52-Week Highs Last Week: Here's Why

Micron's unions are pushing for higher bonuses due to the company's record profits from the AI-driven demand for memory chips. According to reports, bonuses are capped at 200% of salary, while competitors SK Hynix and Samsung have awarded substantial bonuses. The unions may threaten a strike, potentially disrupting the global memory supply. Micron's market valuation has surpassed $1 trillion, and talks are expected to begin in mid-September.

Nvidia reported strong Q2 earnings with $96.2B revenue, driven by 117% YoY growth in data center sales. However, rising memory costs, particularly high-bandwidth memory, are reducing gross margins, which Nvidia attributes to increased component procurement costs. The company expects margins to decline further before recovering in fiscal 2028. This trend benefits memory suppliers like Micron Technology, as Nvidia's higher memory commitments suggest increased pricing power for suppliers.

Nvidia (NVDA) announced a $279 billion commitment to memory chip suppliers, up from $119 billion three months prior, to support its data center growth. The spending, focused on high bandwidth memory (HBM), is aimed at securing supply for AI chip production. Nvidia's data center revenue grew 117% year-over-year to $89 billion in Q2 FY2027. The company expects 70% total revenue growth in FY2028, driven by AI chip shipments. The bulk of the spending will benefit SK Hynix and Micron Technology (MU).

Intel (INTC) agreed to issue the U.S. government 275M shares, with up to 159M more in escrow, and warrants for 241M additional shares at $20/share if it loses majority ownership of its foundry business. Intel closed the quarter with $12.9B in cash. Its stock has high valuation metrics: forward P/E of 87, P/S of 8.3, and P/CF of 39. Intel launched the Xeon 6+ data center CPU and improved 2.5D packaging tech, EMIB T. Analysts have a consensus 'Hold' rating, with a mean target price of $113.87, sug

Micron Technology plans to double its capital expenditures to over $45 billion in fiscal 2027, citing growing AI-driven demand for memory. The company is investing in new manufacturing capacity globally, with projects in the U.S., Taiwan, Japan, and Singapore. Micron expects new supply to begin ramping in 2028, addressing shortages in AI memory. The company is also pursuing multiyear strategic agreements with customers to secure committed supply and demand.

Nvidia's equity portfolio, valued at over $63 billion, includes significant stakes in Intel, SpaceX, and CoreWeave. Intel, its largest holding, represents 47% of the portfolio, highlighting Nvidia's focus on domestic semiconductor manufacturing. SpaceX, the second-largest holding, was acquired indirectly through Nvidia's investment in xAI. CoreWeave, an AI-focused cloud provider, aligns with Nvidia's strategy in the AI infrastructure sector.