Without question, semiconductor stocks have been some of the biggest winners amid the artificial intelligence (AI) revolution. While stars such as Nvidia , Taiwan Semiconductor Manufacturing , and Broadcom fetch the most attention, investing in the chip sector at large during the past two years has yielded market-beating returns. As of market close on Dec. 20, the VanEck Semiconductor ETF had gained 39% in 2024 -- handily topping the returns of both the S&P 500 ( ^GSPC 1.10% ) and Nasdaq Composite ( ^IXIC 1.35% ) . Nevertheless, not all semiconductor stocks have fared so well. Take Micron Technology ( MU -0.49% ) , for example -- with shares up a piddling 6% in 2024, investors might think this particular chip stock is a bust. Smart investors know that looking at the return of a stock is just one variable when assessing an opportunity. Below, I'm going to dig into what has influenced Micron's price action throughout the year and make the case for why 2025 could be a rebound year for the company. Micron stock just got smoked The chart below illustrates movement in Micron shares throughout 2024. The peaks and valleys depicted in the graph make one thing abundantly clear -- Micron is pretty volatile. In particular, the last six months have been abnormally rocky with shares dropping by about 38% since June. MU data by YCharts My take on what's causing Micron shares to experience so much volatility comes down to one thing: expectations. When businesses such as Nvidia, Taiwan Semiconductor, Broadcom, and many others exhibit robust growth on a consistent basis, investors tend to apply these trends to other companies in the same industry. Although I understand the psychological factors behind these parallels, it's imperative for investors to understand that such a notion is rooted in faulty logic. Not all chip companies manufacture the same products or serve the same purpose, and for that reason, each business is going to experience its own set of unique headwinds and catalysts. Micron's position in the AI realm focuses on memory and storage applications. Although the company has had impressive top-line growth that's augmented by rising profitability, Micron's forecast for a big miss in its 2025 fiscal second quarter spooked investors . Again, I don't necessarily see this as a reason to sell the stock. Below, I'll dig into why Micron's latest plunge is unwarranted. The shares could rebound in 2025 Since AI emerged as the world's next megatrend about two years ago, one product in particular has become the technology sector's holy grail: graphic processing units (GPUs). Companies such as Nvidia and Advanced Micro Devices develop chipsets known as GPUs that are capable of running complex algorithms at extremely high speeds, and it's this hardware that powers myriad generative AI applications. Taking this a step further, Taiwan Semiconductor manufactures GPUs for Nvidia and AMD while Broadcom supplies a host of network infrastructure equipment needed to power data centers where these GPUs are housed. With all of that in mind, doesn't it seem natural that those specific businesses have experienced abnormally high growth during the past two years? In my eyes, Micron just hasn't had its moment yet, but I think it's coming. Considering investments in AI infrastructure are expected to be in the trillions of dollars during the next several years, I think it's safe to say that demand for GPUs and data center services isn't going to slow. At a more granular level, this means that training and inferencing workloads are going to become more sophisticated and mission critical as competition in the AI arms race intensifies. It's this dynamic that should result in a greater need for memory and storage protocols -- and Micron is extremely well-positioned to capture that demand. This isn't just lofty theory, either. Per Micron's 2025 fiscal first quarter (ended Nov. 28), the company's data-center revenue increased by a staggering 400% year over year and reached a record level. Furthermore, the company's data-center segment now accounts for more than 50% of the business. To me, these trends underscore the need for Micron's memory chips and I expect the tailwinds to carry into next year and beyond. Although the company's near-term outlook may not have lived up to expectations, I think the long-term narrative is still very much in focus. According to management, the total addressable market for high bandwidth memory is expected to reach $100 billion by 2030 -- more than six times what it is today. Considering Micron's trailing-12-month revenue is in the ballpark of $29 billion, I think the company has significant upside. Is Micron stock a buy right now? Valuing Micron is a daunting task. Even though the company generates positive earnings, it has only recently transitioned to a profitable enterprise and so using the price-to-earnings (P/E) ratio seems a little out of place, in my opinion. Instead, I'll use the PEG ratio to assess an investment in Micron. The PEG ratio looks at analyst forecasts for earnings growth over several years. If the PEG ratio is less than 1, the stock could be seen as undervalued. Right now, Micron's PEG ratio is just 0.23. In my opinion, Micron's low PEG suggests that investors could be overlooking the need for memory and storage chips as AI workloads become larger and more complex. Over time, however, I think the need for Micron's services will become increasingly obvious. To me, buying Micron right now is a bargain opportunity for investors with a long-term time horizon.None
Votes will be counted in the Maharashtra and Jharkhand assembly elections Here's your 10-point cheat sheet to this big story Most exit polls have predicted a Mahayuti win in Maharashtra. Three exit polls have, however, forecast neither the Mahayuti nor the Maha Vikas Aghadi (MVA) would secure a decisive majority to form government. This may lead to a situation where 'resort politics' may happen. In Mahayuti, the BJP contested the largest number of seats at 148, followed by the Shiv Sena led by Chief Minister Eknath Shinde at 80, and the Nationalist Congress Party (NCP) led by Deputy Chief Minister Ajit Pawar at 52. Mahayuti candidates are contesting in six more seats. In the Opposition MVA, the Congress contested 102 seats, Shiv Sena (Uddhav Bal Thackeray) 96 seats, and the NCP (Sharadchandra Pawar) 86 seats. Two seats were contested by Samajwadi Party and two seats by smaller MVA allies. This was the first election after splits in the NCP and the Shiv Sena. In the 2019 elections, BJP won 105 seats, the undivided Shiv Sena 56, undivided NCP 54, Congress 44, independents 13 and others 16 seats. The results today will have huge implications for all the parties, particularly NCP and Shiv Sena. Uddhav Thackeray lost his chief ministerial position due to a split in his party in 2022 and the party has been keen to prove a point in the assembly polls. His key rival Eknath Shinde also gained popularity due to welfare measures of the Mahayuti government. And now there is a seeming clash over who is the true inheritor of Balasaheb Thackeray's legacy. The NCP also suffered a split with Ajit Pawar joining the ruling alliance as Deputy Chief Minister in July last year. His uncle Sharad Pawar kept a tight campaign and has been keen to see that there is no dent to his long legacy in politics. A lot is at stake for the Congress in Maharashtra after the party is seen to have bungled its prospect in the Haryana assembly polls earlier this year. The BJP formed its third successive government in Haryana earlier this year. In Jharkhand, while the ruling JMM-led alliance is banking on its work and promises, the NDA is hopeful of getting people's support on its promises and the work of the central government. The campaign saw BJP leaders targeting the JMM-led alliance over its performance and raised the issue of "infiltration" and tribal rights in the state. Prominent candidates include Chief Minister Hemant Soren, wife Kalpana Soren, and sister-in-law Sita Soren from the JMM. Key BJP leaders include former Chief Minister Babulal Marandi, Assembly Speaker Ravindra Nath Mahto (JMM), AJSU Party chief Sudesh Mahto, and Leader of Opposition Amar Kumar Bauri. Votes in bypolls will also be counted today. In Kerala's Wayanad, Congress leader Priyanka Gandhi Vadra is contesting the Lok Sabha byelection on the same seat that his brother Rahul Gandhi used to represent before he won this time from Uttar Pradesh's Rae Bareli. Bypolls were held on seven assembly seats in Rajasthan. In Madhya Pradesh, a by-election was held in Budhni and Vijaypur. In Uttar Pradesh, votes will be counted in the by-polls in nine assembly seats.
South Korea’s Yoon survives impeachment move, party leader says president will resignTHIRUVANANTHAPURAM: Central grands and tax allocation should be increased for Kerala, which is reeling under financial crisis. The 16th Finance Commission, which will decide and make recommendations regarding this, will begin a three-day critical visit to Kerala today. Central assistance will be available from 2026 at the rate recommended by the commission. The team headed by Dr Arvind Panagariya, Chairman of the Commission and former Vice Chairman of Niti Aayog will reach Kochi today afternoon. Finance Minister KN Balagopal, Chief Secretary Sharada Muralidharan and others will receive them and take them to Kumarakom. The team will visit the Thiruvarpu and Aymanam panchayat areas on Monday morning and reach Kovalam in the evening. They will be received at the conference hall of Kovalam Leela Hotel at 9.30 am on Tuesday under the leadership of Chief Minister Pinarayi Vijayan. Finance Minister KN Balagopal will deliver the welcome speech. They will then hold a discussion with the cabinet members. From 11.30 a.m. there will be a discussion with State Finance Commission Chairman Dr KN Harilal, representatives of Grama, Block and District Panchayat Associations, Chamber of Municipal Chairman, Mayors Council etc. The Commission will meet the traders and industrialists representatives from 12.45 pm. Meeting with representatives of political parties from 1.45. Then the Chairman will hold a press conference. Other members of the Commission are Ajay Narayan Jha, who was a member of the 15th Finance Commission, Annie George Mathew, former Special Secretary of Expenditure at the Centre, Manoj Panda, former Director of the Institute of Economic Growth, and Soumya Kanti Ghosh, Chief Economic Advisor, SBI Group. Finance Minister KN Balagopal said that the government has taken proper preparations to present the demands strongly and get the rightful financial rights.