Overview
- Analysts lifted targets on Micron, with DA Davidson starting at $1,000 and TD Cowen and Melius at $660 and $700, arguing AI workloads are making the memory cycle longer as Micron ships HBM4 and plans more than $25 billion in 2026 spending.
- Intel topped expectations with $13.6 billion in revenue and 29 cents in EPS, crediting AI‑driven CPU demand, and Elon Musk said Tesla and SpaceX plan to use Intel’s 14A manufacturing for the “Terafab” effort.
- Banks raised Intel price targets after the beat, though several kept neutral or underweight ratings, citing foundry profitability, margin pressure later this year, and execution risk on 18A/14A ramps.
- TSMC reported strong growth but said it will delay buying ASML’s next‑generation lithography machines until 2029 to manage costs, and it will continue using current ASML tools.
- Chip stocks swung hard as investors recalibrated AI bets, with Micron and Intel logging huge year‑to‑date gains and Arm dropping on profit‑taking, highlighting how a longer AI cycle can drive both rallies and sharp pullbacks.