Micron Rallies on AI-Driven HBM Demand, Strong Results Ahead\u00a0<\/p>\n
In recent times, Micron\u2019s high-bandwidth memory (HBM) chips have seen exceptionally strong demand due to tight supply amid the ongoing expansion of AI infrastructure. As a result, Micron\u2019s revenues for first-quarter fiscal 2026 came in at $13.64 billion, representing a 56.8% year-over-year increase, as mentioned on investors.micron.com<\/a>.\u00a0<\/p>\n Revenue growth was broad-based across all business units. In particular, the cloud memory business segment stood out, reporting sales of $5.28 billion for the quarter, up an impressive 99.5% year over year. This robust top-line performance translated into significant profit gains, with Micron reporting non-GAAP net income of $5.48 billion, or diluted earnings per share (EPS) of $4.78.\u00a0<\/p>\n Moreover, surging AI-related demand for Micron\u2019s HBM chips has prompted the company to project fiscal second-quarter 2026 revenues in the range of $18.3 billion to $19.1 billion, with diluted EPS expected between $8.22 and $8.62. The record free cash flow of $3.9 billion generated in the fiscal first quarter of 2026 also gives the company financial strength to support its future growth initiatives.\u00a0<\/p>\n Against this favorable backdrop, Micron\u2019s expected earnings growth for the next year is a solid 23.9%, making it a compelling buy. Brokers are also optimistic about the company\u2019s future growth, estimating an average short-term price target for MU stock at $252.44, an 11.9% increase from the last closing price of $225.52. The highest target is $362, suggesting a potential upside of 60.5%.\u00a0<\/p>\n \u00a0<\/p>\n Image Source: Zacks Investment Research<\/p>\n Commercial and Government Demand Spurs Palantir\u2019s Growth\u00a0\u00a0<\/p>\n Palantir\u2019s revenues in the third quarter came in at $1.18 billion, up 63% from the same period a year ago and 18% quarter over quarter, according to investors.palantir.com<\/a>. Most importantly, sales improved in both the U.S. commercial and government segments. Revenues from the U.S. commercial segment were $397 million for the quarter, up 121% year over year and 29% sequentially. Government revenues were $486 million, up 52% from a year ago and 14% from the last quarter.\u00a0<\/p>\n This growing base of U.S. commercial clients points to Palantir\u2019s potential growth, while the increase in government contracts creates meaningful barriers to entry. Notably, increasing adoption of Palantir\u2019s Artificial Intelligence Platform (AIP) among both the U.S. commercial sector and the government segment not only boosted last quarter\u2019s earnings but also is expected to fuel the company\u2019s future profitability.\u00a0<\/p>\n On this positive note, Palantir is projected to deliver solid earnings growth of 42.5% next year, making it an attractive investment choice. Brokers are equally bullish about the company\u2019s growth prospects, estimating an average short-term price target for PLTR stock at $192.67, up 8.7% from the last closing price of $177.29. The highest target is $255, implying a potential upside of 43.8%.<\/p>\n Image Source: Zacks Investment Research<\/p>\n![\"Zacks](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/12\/137704.jpg\"\/)
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