Micron surge is bullish for these other stocks, says Bank of America
View original at finance.yahoo.comMicron surge is bullish for these other stocks, says Bank of America I started investing in the 1990s and joined Wall Street on the sell side in 1997…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Semicap equipment will see 10%/14% YoY growth in CY26/27E towards $131bn/$150bn driven by fab upgrades to support high-bandwidth memory, higher layer count NAND, leading-edge logic and advanced packaging
80% confidenceReasoning models answering challenging queries could require over 100 times more compute compared to single-shot inference
80% confidenceKLA is a best-in-breed stock and is the one stock in his coverage that he has never downgraded from a 'buy' rating
80% confidenceMicron's sales and profit will jump to $18.7 billion and $8.42 per share in the upcoming quarter
80% confidenceEtch/dep (AMAT/LRCX) could expand to 42% of share, up 3% since 2023, with NAND and HBM contributing to gains for all three companies
80% confidence2026 will feature another ~30% growth towards the first $1tn for semiconductor sales, supported by nearly double-digit YoY wafer fab equipment (WFE) sales growth
80% confidenceThis WFE upcycle is more powerful and durable than previous ones, suggesting continued semicap outperformance in CY26
80% confidenceFCF margins at AMAT, LRCX, and KLAC could reach 20% to 30% through 2028
80% confidenceSemicaps will outperform in CY26 as upstream beneficiaries of capacity expansions and tech upgrades to support multi-year AI infra demand, with upside in C2H'26 and CY27 as visibility into capex plans and fab ramp timelines improves
80% confidenceSemicap trading at a premium to historical multiples, but there is potential for continued EPS upgrades given consensus models' bottom-up sales growth (6-8% annual) below our top-down WFE (10%+) forecast
80% confidenceProcess control will gain 100 bps of share to 13% of WFE in 2026
80% confidenceTo address tight supply-demand conditions extending beyond 2026, capital spending in fiscal 2026 will be approximately $20 billion weighted to the second half of the fiscal year
80% confidenceTraining is significantly and increasingly compute-intensive, and compute needs are accelerating rapidly, particularly as more models move into production
80% confidenceAn evolving supercycle could be a strong tailwind for semiconductor equipment and manufacturing stocks, including those tied to memory capital expenditures
80% confidence