Micron tops fourth-quarter estimates, guides above Street on AI memory demand

Bank of America forecasts 168% YoY revenue growth for CoreWeave, maintaining a $140 price target. Micron's 3D tech strategy is seen as a competitive advantage. Tesla shares dipped slightly despite strong earnings and merger speculation. Meta reported 26% YoY revenue growth, beating estimates. American Airlines saw record revenue but a net loss due to fuel costs. Comcast's earnings declined amid connectivity business pressure. Spotify's revenue rose 16% YoY, driven by subscriber growth.

Tesla and Meta reported earnings, causing AI-related stocks to decline. Tesla's revenue was flat, but it generated $1.5B in free cash flow, while Meta's revenue rose 26%. Both companies' capital expenditure plans sparked investor concern about AI spending, affecting chipmakers like Nvidia, Micron, and AMD.

Wall Street set to open lower on Thursday due to AI-related concerns, with Tesla, Meta, and other tech stocks declining. Tesla fell 3.5% after cutting its capital expenditure forecast, while Meta slipped 2.4% due to AI expansion costs. SpaceX and Super Micro also dropped despite strong earnings. Oil prices rebounded, adding to market jitters. S&P 500 earnings growth forecast raised to 32.3%.

Micron Technology reported $54.23B revenue for Q4, up 379% YoY and 31% sequentially. The company guided to $61.5B for Q1 2027. Non-GAAP EPS was $33.42, with an 87.0% gross margin. Revenue growth was driven by higher memory prices, not volume. Fiscal 2026 revenue tripled to $133.19B. Management expects slower price increases and plans heavy reinvestment in capacity.

Samsung, SK Hynix, and CXMT are advancing 4F² DRAM technology, while Micron abandons it, focusing on 6F² and 3D stacking. Samsung and SK Hynix aim for commercialization by 2027-2028, potentially impacting cost competitiveness and chip density. Micron's strategy includes wafer bonding and vertical HBM. Market shares in NAND are shifting, with Chinese firms gaining ground. Shares of Samsung and SK Hynix rose 6% on the news.

Micron Technology (MU) outlined its 2027 chip roadmap, introducing new DRAM and NAND nodes, and a vertical HBM product line. The company's stock rose 2% on the news. Micron's president, Scott DeBoer, criticized rivals' 4F² DRAM designs, citing scaling problems and higher costs. Micron reported record revenue of $54.23 billion last quarter and forecast $61.5 billion for the next quarter.