For Institutions
About
Jabil Inc. is set to release its Q1 earnings on Dec. 17, with expected earnings of $2.72 per share and revenue of $8.07 billion. Analysts have adjusted their ratings and price targets: B of A Securities raised the target to $262, Barclays cut it to $223, JP Morgan increased it to $256, Stifel set it at $245, and Raymond James raised it to $230. Jabil's stock recently fell 5.1% to $222.37. Analysts maintain positive ratings, with accuracy rates ranging from 68% to 88%.
SK Hynix expects that the market share of AI servers will soar from 38% in 2025 to 53% in 2030, driving a strong 24% growth in DRAM demand. On the supply side, the fundamental limitation lies in the long capacity expansion cycle. It takes several years for new DRAM factories to be built and reach normal operation, with additional capacity expected to be released by 2028. This expectation is more severe than UBS's forecast (which anticipates supply tightness to last until the first quarter of 2027). Does this mean a price increase cycle or an overshoot?
Analysts are optimistic about AppLovin's growth potential due to its Axon 2 AI platform, despite recent share price fluctuations. The platform is reshaping its ad business, contributing to a year-to-date share price return of 96.23%. Jefferies has raised its target price to $860, suggesting the stock may be undervalued. However, high P/E ratios and competition pose risks. The fair value is estimated at $728.25, indicating potential upside, but global privacy rules and competition could impact margins.
Mizuho Securities analyst Vijay Rakesh raised Micron's (MU) price target to $300, citing strong DRAM pricing and AI-driven NAND demand. He maintained a Buy rating ahead of Q1FY26 results, expecting EPS of $3.93 and sales of $12.82 billion. Rakesh highlights Micron's DRAM market rebound and leadership in high-bandwidth memory. Analysts on TipRanks give MU a Strong Buy rating, with a $257.52 average price target.
AI stocks like Seagate Technology and Western Digital have surged 257% and 316% in 2025 due to high demand for data storage solutions. However, the rise of NAND storage as an alternative and potential oversupply could lead to a downturn in 2026. Investors should be cautious of high valuations and shifting market dynamics.
