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Yahoo Finance Senior Reporter Brooke DiPalma joins Market Domination to tackle today's top trending tickers, including the momentum driving SpaceX (SPCX) shares in Friday's session after the company's IPO, the impact it is having on other space stocks Virgin Galactic (SPCE) and Rocket Lab (RKLB), and how semiconductor stocks such as Micron Technology (MU) and Nvidia (NVDA) are moving on the historic public offering.

Video Transcript

00:05 Jared

It is time to cover some of today's trending tickers brought to you by CBO. We're watching SpaceX, other space stocks and chip names and joining me now live from the Nasdaq is Yahoo Finance's Brooke De Palma. So Brooke, we got to talk about SpaceX here. You were there at 11:45 a.m. when we got that first trade, 56 something million shares, $8.4 billion dollars. What was it like?

00:32 Brooke DiPalma

Yeah, I mean the stock opened up at 150, now hovering just above 160 after surpassing 170 earlier this day. Definitely the excitement, the energy, it is all there. But you can't help but also follow this story on social media as well. Elon Musk, uh particularly, uh sort of making this more than just an IPO itself. There are so many ways that this IPO is so unique including that $135 IPO price that we got even in the filing. On top of the fact that retail investors are getting larger piece of pie. But I also want to draw your attention to this tweet where they actually gave the underwriter, supposedly Elon Musk, giving the underwriters green shoes because of the green shoe option, essentially saying that underwriting banks can sell more shares than actually exists within the offer. Typically that's upwards of more than 15%. And so it just goes to show that the energy, the excitement and and the anticipation that this IPO going into it was already going to be oversubscribed. It's certainly there and you could see this just sort of playing out not only here at the Nasdaq but really across of social media. A lot of social posts that have been putting out are getting such high engagement. Um so really, SpaceX now trading above still above nearly uh 19% more than that IPO price of 150.

01:23 Jared

Yeah. We were just talking to Caleb Silver down at the New York Stock Exchange and guess what they're watching too. All right, we we got to move on here because looking at some of the other space stocks out there, you could say Rocket Lab, Virgin Galactic, EchoStar, UFO ETF, they're all trading lower here. And this raises an overarching concern I've heard a lot this week, which is SpaceX is so big, maybe it's just sucking money out of other trades and there are concerns that maybe, you know, we're putting in a temporary market top here because of its size. What do you think, Brooke?

01:54 Brooke DiPalma

Right. Right. Well, if you take a look at SPCE, which is quite similar to SPCX, which is what SpaceX is now trading under, that's Virgin Galactic. And going into this, year to date, the stock was up more than 22%. Now the stock trading just below $4 per share. And so you have to wonder with so much discussion around how this SpaceX IPO was really providing such momentum to the space economy, the interest in the space economy, you have to wonder how these IPOs or rather how these companies within the space sector will perform following this when it seems like everybody wants to be in on the company who seemingly seems to be doing everything. I mean, Elon Musk wants to build a colony on Mars. Elon Musk is already putting data centers or rather satellites into space, eventually data centers into space. He also wants to get colonization on the moon. And so they're playing into these long-term bet that's also taking some near-term strategy. A company that's not profitable, a companies that's revenue is far less than its valuation, but it seems like investors right now willing to take the risk, perhaps moving away from some of these, you know, old school, long running space companies that we've seen listed for quite some time.

03:00 Jared

Sure, like Boeing, Lockheed Martin, etc. Want to talk to you about semiconductors because they've had an incredible run this quarter, but they've been under a bit of pressure at various times this week and part of what I was just talking about, the concern that some of the uh that the SpaceX trade is being funded by other parts of the market. Well, are we seeing that in the chip trade here?

03:24 Brooke DiPalma

Yeah, what we're seeing as we head or make our way into this afternoon, if you take a look at what we're seeing within the YF interactive, we are seeing uh some intraday trading, mostly a mixed picture, but Nvidia, Broadcom, Micron, ASML, all down, moving lower, but at the same time, you do have some stocks that are benefiting not only from perhaps this risk-on sentiment that SpaceX is is inviting to the market given that it has outperformed expectations, certainly well above that 135 IPO price. But on top of that, too, you have this potential ceasefire uh within uh with between the US and Iran. So that's certainly contributing to some momentum that we're seeing in the market, too. But some of the names seeing the most momentum today include Intel, ARM, Qualcomm, even SanDisk seeing a nice pop. And so certainly these names that are playing into this larger AI narrative are seeing some tailwinds because of the SpaceX IPO, Jared.

04:09 Jared

Yeah, and you got to think that the uh the winners, that might be a narrower group going forward. But I appreciate you stopping by here, Brooke. Yeah.

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Riding the artificial intelligence (AI) boom, Sanjay Mehrotra-led Micron Technology MU outpaced Jensen Huang-led NVIDIA Corporation NVDA over the past year, rising 761.5% compared to NVIDIA’s 44.3%. Let us thus see how both companies performed and whether Micron holds an investment edge over NVIDIA –Zacks Investment Research

Image Source: Zacks Investment Research

The Bullish Case for MU Stock

Micron reported revenues of $23.86 billion in the fiscal second quarter of 2026 and expects revenues to improve further to $33.5 billion in the fiscal third quarter, according to investors.micron.com. As hyperscalers increase their spending on AI infrastructure, Micron’s advanced high-bandwidth memory (“HBM”) chips are witnessing high demand, supporting revenue growth.

The present supply-demand imbalance in HBM chips gives Micron strong pricing power and underpins a strong long-term growth outlook. Nonetheless, the HBM chips are in demand due to their capability to manage complex workloads while delivering improved power efficiency.

Also, constrained supply in NAND flash chips is expected to continue through the middle of next year, which could further boost margins. Micron expects a solid gross margin of around 81% for the fiscal third quarter of 2026, showcasing strong financial momentum.

The Bullish Case for NVDA Stock

NVIDIA’s latest strong Data Center performance demonstrated its position as a leader in hyperscale AI infrastructure investment worldwide. In the fiscal first quarter of 2027, NVIDIA’s Data Center segment generated a record $75.2 billion in revenues, up 92% year over year and 21% sequentially, according to nvidia.news.nvidia.com.

NVIDIA reported revenues of $81.6 billion in the fiscal first quarter of 2027, a new record, up 85% from a year ago and 20% sequentially. Despite its massive size, NVIDIA’s revenues continue to grow, driven by strong demand for its cutting-edge AI chips, networking solutions, and data center infrastructure that support large-scale AI training and inference workloads. NVIDIA projects fiscal second-quarter of 2027 revenues of $91 billion, plus or minus 2%.

Additionally, NVIDIA continues to deliver strong margins, reflecting its pricing power in graphics processing units (GPUs) and AI accelerators, while maintaining sustained demand for its products across the AI and data center markets. For the fiscal first quarter of 2027, NVIDIA’s non-GAAP gross margin was 75%, and is expected to remain near 75% for the fiscal second quarter of 2027, a tell-tale sign that the company is capable of maintaining strong profitability.

Story Continues

Micron Has the Edge: Why It’s a Better AI Buy Than NVIDIA Now

Strong AI-infrastructure demand is currently driving the bullish outlook for both Micron and NVIDIA. However, Micron appears to offer a more attractive valuation than NVIDIA at the current levels.

Per the price/earnings ratio, MU trades at 16.65 forward earnings compared with NVDA’s forward earnings multiple of 22.97. Since NVIDIA trades at a premium valuation, the company needs to deliver strong growth to justify further upside. On the other hand, Micron can outperform through steady and sustainable earnings growth.Zacks Investment Research

Image Source: Zacks Investment Research

Additionally, Micron is no longer viewed as a traditional cyclical memory company; it has elevated itself to become a key supplier in the AI infrastructure ecosystem. Micron has sold a significant amount of its HBM capacity through 2026 amid strong AI-driven demand. The HBM supply constraint has given the company a strong pricing power, boosting profit margins, improving revenue visibility and creating further upside potential for the stock.

In contrast, much of NVIDIA’s strong quarterly performance already appears reflected in its share price, and the ongoing China-related export curbs could create pressure on future growth. Therefore, currently Micron looks like the more compelling investment opportunity.

While Micron has a Zacks Rank #1 (Strong Buy), NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Micron Technology, Inc. (MU) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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This article first appeared on GuruFocus.

Micron Technology (NASDAQ:MU) shares fell 2% on Friday as investors assessed valuation concerns ahead of the memory-chip maker's quarterly results later this month, while analysts at Goldman Sachs raised their price target but maintained a neutral stance on the stock.

Micron has rallied sharply in recent sessions, gaining about 15% over the past five trading days despite heightened volatility across semiconductor stocks. The company remains a key beneficiary of growing demand for high-bandwidth memory chips used in artificial intelligence infrastructure.

Warning! GuruFocus has detected 7 Warning Signs with MU. List of 52-Week Lows List of 3-Year Lows List of 5-Year Lows Is MU fairly valued? Test your thesis with our free DCF calculator.

Goldman Sachs increased its price target on Micron to $900 from $400 but kept its Neutral rating, citing elevated investor expectations ahead of Micron's June 24 earnings report. The brokerage said optimism surrounding long-term customer agreements and AI-related memory demand has contributed to the stock's strong performance.

Micron trades at roughly 10 times forward earnings, a discount to broader technology benchmarks. Goldman Sachs expects Micron's profit growth to remain supported by robust demand for advanced memory products, though it believes earnings could reach a cyclical peak in fiscal 2027.

The firm said investor focus is likely to remain on the durability of DRAM pricing, progress in high-bandwidth memory products, and updates related to customer commitments. Micron shares slid about 3% in early Friday trading.

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Quick Read

Oracle dropped 22.1% after a record Q4 while FY27 guidance rose to $90 billion, creating a classic contrarian entry as forward estimates moved higher. ORCL's $638 billion contracted backlog and 93% cloud revenue growth contrast sharply with MU's historically unsustainable 74.4% margins and quarterly spot-pricing risk. Oracle declared a $0.50 quarterly dividend while Clay Magouyrk confirmed 211 cloud regions are already contracted at profitable rates, combining income with a re-rating opportunity. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Micron Technology (NASDAQ:MU) is the chip stock dominating every feed after its memory business rode the AI cycle to a $1.12 trillion market cap and a 760.37% one-year run.24/7 Wall St.

But here's what you should actually be watching.

The Crowded Trade at the Top of the Cycle

Memory margins do not stay at 74% forever. Micron just reported fiscal Q2 2026 revenue of $23.86 billion, up 196.3% YoY, with GAAP gross margin of 74.4% against a multi-year base where memory margins regularly compress below 30% in downcycles. Capex hit $15.86 billion in fiscal 2025 and is still climbing. CEO Sanjay Mehrotra himself flagged "dependence on sustained AI demand trajectory" as a key risk.

That is a textbook peak-cycle setup wearing AI clothes. The stock is up 249.09% year to date. Reddit's wallstreetbets has been flooded with posts like "+6,476.76% gain on MU LEAPS, should I sell?" When LEAPS screenshots dominate the feed, the crowd has already arrived. You are the exit liquidity. Prediction markets confirm the fatigue: traders price only a 43% probability of MU closing June above $1,000.

The Redirect: A Record-Breaking Cloud Powerhouse on Sale

Oracle (NYSE:ORCL) just delivered a record fiscal Q4 on June 10, 2026, then sold off 22.1% in a week to $184.10. That is the contrarian's window.

Three reasons retirement-focused investors should pay attention while the herd is distracted:

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

1. Backlog visibility memory will never match. Oracle's Remaining Performance Obligations hit $638 billion in Q4, up 363% YoY, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Memory ships and reprices quarterly. Oracle has years of revenue already under contract. Safra Catz called the trajectory "an astonishing quarter" back in September, when RPO was a mere $455 billion.

Story Continues

2. Structural shift, recurring revenue. Cloud is now 52% of total revenue versus 43% a year ago. Cloud Infrastructure revenue grew 93% YoY to $5.787 billion. Multicloud AI Database grew 404% in Q4. Oracle monetizes the same AI buildout lifting Micron, just through subscriptions instead of spot pricing.

3. Guidance raised into the pullback. FY27 non-GAAP EPS guidance was raised to $8.05, representing 18% growth, with FY27 revenue confirmed at $90 billion. Q1 FY27 cloud revenue growth is guided at 58%-64%. The stock has been re-rated lower while forward estimates moved higher. That is a classic contrarian entry.

The Honest Risks, and Why They Don't Break the Thesis

Free cash flow ran to negative $23.686 billion for FY26 on $55.663 billion of capex. Oracle plans to raise roughly $40 billion in FY27 through debt and equity. That is the cost of building 211+ live and planned cloud regions and 72 Multicloud datacenters embedded inside Amazon, Google, and Microsoft. Customers are funding much of it directly. The capacity, per co-CEO Clay Magouyrk, is "all already contracted for at a very profitable rate."

And while the infrastructure compounds, Oracle declared a $0.50 quarterly dividend on June 10, payable July 24. Income, plus a re-rating opportunity. Exactly what a retirement portfolio is built around.

Put Oracle on the watchlist while the headlines chase Micron at $995.87.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

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Quick Read

ORCL stock is off its peak despite trouncing earnings estimates Wall Street is showing signs it is becoming uninterested in the company's ambitions This could spell trouble as Oracle gets increasingly strapped for cash Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Oracle (NYSE:ORCL) recently reported blockbuster earnings, with both the top and bottom lines coming in above estimates. Revenue came in at $19.2 billion ($100 million higher than estimated), and EPS came in at $2.11 ($1.96 estimated). Both of these figures would've led to an equally blockbuster stock market performance, but the opposite has happened.24/7/ Wall St.

Oracle is turning into a "growth at any cost" company, and Wall Street is no longer rewarding it. And if this trend continues, ORCL stock could stay in the red for far longer than you think.

It obviously looks counterintuitive, because investors have historically rewarded profitable growth. However, other figures make revenue and EPS look like a distraction in comparison.

The flashing warning signal for Oracle

The biggest warning signal for Oracle is that the stock market is getting skittish about the AI buildout. ORCL stock reached eye-watering valuations late last year, and this made management confident that going all-in on what the market liked would lead to an even bigger windfall.

Unfortunately, building AI data centers is not easy. Oracle needs hundreds of billions and many years to convert that $638 billion backlog into revenue. It does not have hundreds of billions in cash, so all that money would either have to come in as debt, or Oracle could issue shares. Both of these strategies only work if the stock market keeps rallying and the valuation remains high.

If Wall Street sours on Oracle and the valuation tumbles, everything falls apart.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Let's say ORCL stock drops 50% from here. A company with a $250 billion market cap will have trouble raising hundreds of billions of dollars in low-interest debt.

Why Wall Street is souring on Oracle

Investors' reaction to Oracle's Q4. FY 2026 earnings release implies that they are no longer going to blindly buy ORCL stock. We're not in 2025 anymore, and investors are much more careful about the stocks they hold. Even Palantir (NASDAQ:PLTR) has declined and is now treading water despite back-to-back earnings beats.

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But why?

If you look at revenue/EPS and then buy stocks off of just those two metrics, you're likely going to underperform. Wall Street is now looking at balance sheets and cash flow instead. Both of these metrics look unpleasant when it comes to Oracle.

Investors like to buy the "pickaxes" of the AI gold rush. Namely, Nvidia (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM), Micron (NASDAQ:MU), among others. These companies are selling the hardware and have high free cash flow metrics. Their balance sheets are getting healthier by the day.

On the other hand, Oracle is the one buying all this hardware, for higher and higher prices. Trailing 12-month free cash flow is -$23.7 billion. Oracle is only "profitable" due to accounting rules spreading out the buildout costs over many years. This is the case with many of its peers.

Rougher times are likely ahead

One of the main reasons behind ORCL stock tumbling by 27% so far into June is that management is doubling down on spending and shareholders will have to fund it. Oracle spent $55.7 billion on data centers and infrastructure in FY2026. Management projects net capex will balloon even further to around $70 billion in FY2027.

To fund this buildout, Oracle raised $43 billion in debt and $5 billion in equity in FY2026. Its total debt surpassed $153.1 billion by the end of February. And to fund the increased capex for next year, Oracle plans to raise another $40 billion in FY2027 through debt and equity. This includes a previously disclosed $20 billion "at-the-market" equity program.

On the flip side, Nvidia announced an additional $80 billion buyback program less than a month ago. It's clear why investors aren't happy with Oracle and other companies that are spending recklessly on this buildout.

I still wouldn't dump ORCL stock. Here's why

The market rally isn't entirely rational, and there are still pockets out there that are seeing success despite limited cash flow.

SpaceX (NASDAQ:SPCX) just had its IPO and is now worth over $2 trillion as of this writing, with other AI companies following suit. This "IPO mania" could spill over into the rest of the market and lead to a final, more euphoric leg of the AI rally. Of course, it's far from guaranteed, but if you're holding ORCL stock after a near-30% fall, it's not a good idea to sell at a loss just as the market starts getting interesting again.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

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Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.

Micron Technology (MU) has been back in the spotlight after a fresh wave of bullish Wall Street research and its decision to bring Bechtel on board for a massive New York megafab project tied to future AI driven memory demand.

See our latest analysis for Micron Technology.

Micron's share price has swung sharply on sector news and analyst commentary this week. The recent 30 day share price return of 29.91% and roughly 7x one year total shareholder return show strong momentum that investors are re pricing on every AI headline.

If Micron's AI fueled surge has your attention, it can be useful to scan other chipmakers plugged into the same build out by checking out 48 AI infrastructure stocks

With Micron now worth about US$1.01b and trading at US$995.87 after a powerful AI run, the question is simple: are you looking at an overheated momentum story, or is the market still underestimating how much future growth is already priced in?

Most Popular Narrative: 96% Overvalued

According to the most followed Micron narrative, the fair value of $507.88 sits well below the recent close at $995.87, which frames the current AI enthusiasm as a stretched pricing story rather than a mispriced bargain.

Ultimately, Micron is a compelling, high-beta opportunity for investors who believe in the enduring power of AI and are prepared to navigate the significant volatility inherent in the semiconductor memory sector.

While the current environment of rising prices and immense AI demand is highly favorable, investors must weigh this against the significant challenges, including fierce competition from rivals like Samsung and SK Hynix, and the unpredictable nature of geopolitical tensions.

Read the complete narrative.

Curious what kind of revenue expansion, margin profile, and future profit multiple would still justify a higher fair value than today's price? The narrative leans on aggressive memory growth, richer profitability tied to AI centric products, and a valuation framework more commonly used for top tier software companies. If you want to see exactly which assumptions are doing the heavy lifting, you will need to read the full breakdown.

Result: Fair Value of $507.88 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this bullish setup can change quickly if hyperscaler AI capex slows or if memory producers overbuild capacity, which could pressure pricing and margins again.

Story Continues

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Another Angle on Valuation: Earnings Multiple vs AI Hype

There is a sharp contrast between the narrative fair value of $507.88 and what the current P/E suggests. At a P/E of 46.6x versus a Semiconductor industry average of 67.8x and a fair ratio of 89.1x, the market is applying a lower earnings multiple despite Micron's AI heavy story.

That gap can cut both ways, either as a cushion if expectations cool, or as extra downside risk if earnings stumble and the multiple also compresses. Which side of that equation do you think matters more for your time horizon: the earnings path, or the multiple the market is willing to pay?

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:MU P/E Ratio as at Jun 2026

Next Steps

With sentiment clearly mixed, this is the moment to move quickly, weigh the potential upside against the concerns, and base your own view on the underlying data using 4 key rewards and 3 important warning signs

Looking for more investment ideas?

If Micron has sharpened your focus on opportunities, do not stop here; use the screener to spot other stocks that fit your risk and return preferences.

Target income potential while aiming for resilience by reviewing 8 dividend fortresses that might help support a more dependable cash flow profile in your portfolio. Hunt for value where quality still matters by scanning 46 high quality undervalued stocks that combine stronger balance sheets with compelling fundamentals. Reduce portfolio stress by focusing on 67 resilient stocks with low risk scores that aim to keep volatility in check without giving up on growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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The S&P 500 has climbed to near-record highs despite growing concerns about valuations, AI spending, and signs of speculative behavior across parts of the market.

The S&P 500 has rallied 8% year to date, after delivering double-digit gains in 2023, 2024, and 2025.

Investors have recently watched Micron reach a $1 trillion valuation, shares of SanDisk and Intel soar, and demand for a potential SpaceXIPO reach a fever pitch. At the same time, the market suffered a sharp pullback on June 5 as investors questioned whether the AI trade had gone too far.

Goldman Sachs believes the recent volatility has not changed the bigger picture.

"The path will remain bumpy, but earnings growth should continue to lift US equities," Goldman analysts wrote in a recent note sent to TheStreet.

The firm expects the S&P 500 index to rise another 8% by year-end, reaching 8,000.

Earnings growth is the fundamental bull engine

While investors debate valuations and AI spending, Goldman says that corporate earnings remain the most important factor.

"Earnings growth should continue to lift US equities," the firm wrote.

Goldman expects S&P 500 earnings per share to grow 24% in 2026 and another 13% in 2027.The S&P 500 has rallied 8% year to date, after delivering double-digit gains in 2023, 2024, and 2025.Getty Images

The firm pointed to a strong first quarter, when aggregate S&P 500 earnings rose 18% year over year, excluding certain one-time items. The median company posted earnings growth of 14%, making it one of the strongest quarters in roughly a decade.

Goldman also pushed back against concerns that a surge in stock issuance could undermine the rally.

The firm estimates U.S. companies will issue roughly $700 billion of equity this year, equivalent to about 1% of Russell 3000 market capitalization and roughly in line with historical averages.

Related: Goldman Sachs sends strong message on next Fed rate cut

Meanwhile, Goldman expects companies to repurchase about $1 trillion of stock, helping absorb new supply.

The firm said IPO activity is increasing but remains far below the levels seen during previous market peaks. Goldman expects roughly 100 IPOs this year, compared with more than 250 in 2021 and nearly 400 during the dot-com era.

Goldman says the AI boom is still accelerating

Artificial intelligence remains at the center of the market's biggest debate. Some investors are concerned that the massive spending by technology companies may not ultimately generate returns enough to justify the industry's soaring valuations.

Goldman acknowledges those concerns but sees little evidence that spending is slowing.

"The AI investment boom shows no sign of slowing," the firm wrote.

Story Continues

Related: Cathie Wood buys $4.3 million of tumbling tech stock

According to Goldman, consensus forecasts call for the largest U.S. hyperscalers to spend more than $750 billion on capital expenditures this year, up 84% from 2025 and roughly $200 billion higher than estimates at the start of the year. The firm expect spending to climb another 20% next year to about $920 billion.

Goldman also estimates that AI infrastructure companies will generate roughly half of total S&P 500 earnings growth this year.

"AI infrastructure stocks will generate roughly half of S&P 500 EPS growth this year and have driven most of the YTD increase in index EPS estimates," the analysts wrote.

Still, investors remain uneasy about how long that dynamic can continue.

"The key question is whether the earnings boost from AI investment fades before broader returns on those investments appear across corporate America. But that question is unlikely to be resolved soon," Goldman wrote.

The June 5 selloff highlighted those concerns.

"Recent volatility is a precursor to more ahead," the firm wrote.

"As investors worried that the market had run 'too far, too fast,' a hot jobs print, renewed concerns about the economics of the AI ecosystem, and reports of hyperscaler equity issuance sparked a pullback."

The bank said narrow market leadership, elevated leverage, retail margin debt, and the growing popularity of leveraged ETFs could all contribute to continued volatility.

The risks Goldman is watching closely

Despite its bullish outlook, Goldman flags risks ahead. "For a bull market powered by earnings, the main structural risk is a weaker outlook for corporate profits," the firm wrote.

Historically, major bull markets have ended amid speculative excess, aggressive Federal Reserve tightening, surging equity issuance, or disappointing earnings growth.

The firm's biggest macro concern is the possibility of a closure of the Strait of Hormuz, a development that could drive energy prices higher, pressure corporate profit margins, and complicate expectations for lower interest rates.

Within the AI trade, Goldman said investors remain vulnerable to a sudden shift in either demand for or supply of AI computing power.

Goldman does not believe those conditions are fully in place today, although it noted that each appears somewhat closer than it did several months ago.

Related: Outdoor retail giant closes 59 stores in Chapter 11 bankruptcy

This story was originally published by TheStreet on Jun 12, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

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For Immediate Release

Chicago, IL – June 12, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Micron Technology, Inc. MU, Marvell Technology, Inc. MRVL, NVIDIA Corporation NVDA and Sandisk Corp. SNDK.

Here are highlights from Thursday's Analyst Blog:

Beyond Micron: 2 AI Stocks That Could Deliver Explosive Returns

Shares of Micron Technology, Inc. have delivered astounding gains over the past year, banking on strong demand for artificial intelligence (AI) infrastructure. The stock soared 657.5% during this period, which helped push Micron's market capitalization to $1 trillion, a milestone that very few semiconductor companies have achieved.

Although Micron's shares recently witnessed a sharp sell-off amid a broader market correction, its long-term growth outlook remains convincing, fueled by an incessant demand for its cutting-edge high-bandwidth memory chips as hyperscalers continue to increase their AI infrastructure spending.

Micron has now transitioned from a cyclical semiconductor stock to a critical supplier in the AI infrastructure ecosystem. However, investors willing to diversify their AI semiconductor holdings while capturing similar long-term growth trends should keep AI networking chipmaker Marvell Technology, Inc. and AI memory stock Sandisk Corp. on their radar. Let us thus look in detail at the key catalysts that could drive significant upside in these stocks –

Marvell Strengthens Role in AI Infrastructure Growth

Marvell recently increased its revenue growth outlook for 2027 and 2028, showcasing strong customer demand for its products and an improved revenue visibility. At the midpoint of its guidance, Marvell expects revenues of about $2.7 billion for the second quarter of fiscal 2027, representing 35% year-over-year growth, according to investor.marvell.com.

Marvell's first-quarter fiscal 2027 revenues of $2.418 billion already exceeded expectations, driven mostly by strong demand in AI-related infrastructure. The revenue expansion is being driven by its growing presence in AI networking. The company's networking and connectivity chips power data centers, enabling thousands of interconnected processors to exchange data rapidly and efficiently. This is why NVIDIA Corporation's CEO, Jensen Huang, sees Marvell as a "trillion-dollar company" in the making.

In the first quarter of fiscal 2027, Marvell generated a record $638.8 million in operating cash flow, strengthening its ability to invest more in research and development and support further growth. As a result, the company's expected earnings growth rate for the current and next fiscal year are 41.2% and 51.6%, respectively. Its shares have already soared 256.7% over the past year.

Story Continues

Sandisk Sees Strong Growth Driven by AI Data Center Demand

Sandisk is expected to gain from strong demand for its memory products in AI-powered data centers supported by current supply constraints. Its robust pricing power across its product portfolio is likely to further strengthen its top-line performance.

The company projects $7.75 billion to $8.25 billion in revenues for the fiscal fourth quarter of 2026, according to investor.sandisk.com. The company's focus on high-value customers in the expanding data center market helped Sandisk report revenues of $5.95 billion in the fiscal third quarter, up 97% sequentially and above its own guidance.

Sandisk further projects non-GAAP earnings per share of $30 to $33 for the fiscal fourth quarter, up from $23.41 in the fiscal third quarter, indicating sustained sequential growth momentum. Moreover, Sandisk's strategic New Business Model agreements are expected to strengthen customer retention and boost revenue growth and profitability. Consequently, the company's likely earnings growth rate for the current and next fiscal year are 2096.7% and 177.3%, respectively. Its stock has already surged 3849.2% over the past year.

Sandisk currently has a Zacks Rank #1 (Strong Buy), while Marvell has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.

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Micron Technology, Inc. (MU) : Free Stock Analysis Report

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

This article first appeared on GuruFocus.

Micron Technology (NASDAQ:MU) drew a higher price target from Wolfe Research after the firm lifted its assumptions for memory pricing, according to an analyst note.

Wolfe increased its target on Micron to $1,250 from $550 and kept an Outperform rating. The firm said its updated model reflects sharper price gains for DRAM and NAND in calendar 2026 and 2027.

Warning! GuruFocus has detected 7 Warning Signs with MU. Is MU fairly valued? Test your thesis with our free DCF calculator.

Wolfe said demand appears likely to stay ahead of supply through at least 2027 and possibly into 2028. It also said cleanroom limits may curb bit shipment growth, while high-bandwidth memory pricing could keep rising as suppliers try to narrow margin gaps.

The call adds to a series of upbeat Wall Street revisions on Micron. Susquehanna, DA Davidson and Mizuho have also lifted their targets in recent days, while Micron shares climbed about 11% on Thursday.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Micron Technology, Inc. MU appears well-positioned to benefit from the rapid adoption of artificial intelligence (AI), which is creating a new growth cycle for the storage industry. As AI models become larger and more data-intensive, demand for storage solutions is rising across cloud and enterprise data centers. This trend is favoring Micron Technology’s NAND business.

In the second quarter of fiscal 2026, the company’s NAND revenues jumped 169% year over year and 82% sequentially to $5 billion, accounting for 21% of the total revenues. The robust sequential growth was mainly driven by low-single-digit growth in bit shipments and a high-70s percentage surge in the average selling price. The company witnessed continued strong demand for its data center SSD portfolio, aiding NAND growth. Its revenues from the data center NAND portfolio more than doubled sequentially in the second quarter.

The AI storage opportunity is significant. Training and inference workloads require rapid access to enormous datasets, increasing the need for enterprise SSDs. Technologies such as AI caching, vector databases and retrieval-augmented generation are further driving storage consumption. As a result, NAND demand is growing at a faster pace.

Micron Technology’s product portfolio strengthens its position. The company has expanded its data-center SSD offerings and introduced advanced storage solutions designed for AI environments, such as G9 NAND-based PCIe Gen6 high-performance data center SSDs and 122TB high-capacity SSDs. These products allow Micron Technology to target higher-value segments rather than relying solely on commodity NAND markets.

Supply conditions are another tailwind. Industry NAND capacity remains relatively disciplined, while new production additions take time to ramp up. This helps support healthier pricing and profitability. Micron Technology has also announced plans to expand NAND-related manufacturing capacity, though meaningful output from these investments is not expected until later in the decade.

The AI storage boom is creating a durable demand driver that could support Micron Technology’s NAND growth and market-share gains in the years ahead. The Zacks Consensus Estimate for fiscal 2026 NAND revenues is pegged at $23.72 billion, indicating a roughly three-fold jump from fiscal 2025’s $8.5 billion.

How Do Competitors Fare Against MU in Memory Market?

Sandisk Corporation SNDK and Seagate Technology Holdings Plc STX are two competitors that directly compete with Micron Technology in the memory market.

Sandisk operates as a pure-play NAND storage vendor with strong consumer and enterprise SSD partnerships. The company is highly focused on bringing advanced storage technologies and broad flash storage products for AI workloads in data centers, edge devices and consumer devices. Sandisk’s data center revenues increased 233% sequentially in the third quarter of fiscal 2026, mainly driven by strong demand for storage solutions from AI infrastructure builders, semi-custom customers and technology companies deploying AI at scale.

Story Continues

Seagate Technology is a major force in the hard-disk drive market, particularly for high-capacity storage solutions for data centers and cloud infrastructure. The company is also developing its presence in the SSD market through portfolio expansion and partnerships. In January 2026, Seagate Technology unveiled LaCie Rugged SSD Pro5, which offers ultra-fast Thunderbolt 5 speed for filmmakers, photographers and audio specialists.

Micron’s Price Performance, Valuation and Estimates

Shares of Micron Technology have surged around 249% year to date compared with the Zacks Computer and Technology sector’s return of 13.2%.

Micron Technology YTD Price Return PerformanceZacks Investment Research

Image Source: Zacks Investment Research

From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 10.42, significantly lower than the sector’s average of 24.01.

Micron Technology 12-Month Forward P/E RatioZacks Investment Research

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The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 626.5% and 75.6%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.Zacks Investment Research

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Micron Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Sandisk Corporation (SNDK) : Free Stock Analysis Report

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