Bank of America doubles down on Micron stock before earnings

The U.S. International Trade Commission (ITC) is investigating Micron Technology for alleged patent infringement by Netlist, Inc. The case involves Micron's DDR5 server memory, crucial for AI workloads. Netlist seeks to block imports and halt sales, citing four patents. Micron faces significant exposure, as a similar case led Samsung to pay $898 million. Micron's U.S. headquarters and the strategic importance of its DDR5 products amplify the stakes.

UBS analyst Timothy Arcuri reiterated a $1,625 price target for Micron (MU), citing strong fundamentals, share buybacks, and long-term contracts. Micron is expected to report a 352% revenue increase and 10x EPS jump in Q4. The stock trades at less than 7x 2027 expected EPS, according to UBS.

Michael Burry increased short positions in Micron Technology, Nebius Group, Palantir Technologies, and the iShares Semiconductor ETF (SOXX), citing potential oversupply in the semiconductor industry. The Nasdaq-100 hit a record high before retreating. Burry argues that AI-driven demand for memory chips may lead to future oversupply, impacting these companies' profitability. He also holds long positions in several other stocks, including MercadoLibre.

Cyera raised $400M in Series G funding to expand its AI security platform and grow internationally. Everpure joined the S&P 500 and provided strong fiscal 2028 revenue guidance. Netlist filed a patent infringement complaint against Micron and others with the ITC. VergeIO appointed a new CEO to lead its growth.

The U.S. International Trade Commission (ITC) is investigating Micron (MU), Supermicro (SMCI), and HPE (HPE) for potential patent infringement of Netlist (NLST) memory technology. Netlist seeks exclusion and cease-and-desist orders. Shares of MU, SMCI, and HPE traded lower, with SMCI down 3.4%. Netlist's CEO cited a recent Samsung settlement as a benchmark for its IP value. Micron previously won a legal case against Netlist, invalidating five patents.

Micron Technology (MU) has gained 270% this year. Citi raised its price target to $1,300, citing strong DRAM pricing and tight supply. Q3 revenue was $41.45B, up 345% YoY. Analysts expect Q4 revenue of $51.2B and EPS of $31.56. The stock's outlook depends on future guidance for NAND and DRAM markets.