Micron Technology Inc’s (NASDAQ:MU) fiscal Q4 profit beat on both the top and bottom line is placing the chipmaker under sharper focus for ETF investors seeking to catch the next wave of the semiconductor rally. The timing is especially noteworthy as investors in the industry’s bellwether, Nvidia Inc (NASDAQ:NVDA), look cautious following its own post-earnings decline.
MU stock is the underdog with a solid growth runway. Check its live prices here.
For bullish investors who want a direct leveraged bet on Micron’s stock performance, the Direxion Daily MU Bull 2X Shares (NASDAQ:MUU) enhances its gains for those who are optimistic about the company’s growth path. This ETF becomes more timely as Micron solidifies itself as a foundational AI beneficiary, not only playing the role of a chipmaker but standing out as the sole U.S.-based memory maker poised to address booming demand for high-performance DRAM and NAND solutions.
Micron’s most recent results reinforce that positioning. Micron reported $11.32 billion in revenue against consensus expectations of $11.15 billion, and earnings per share were $3.03, comfortably ahead of expectations of $2.84. CEO Sanjay Mehrotra highlighted record-breaking fiscal-year performance and reinforced Micron’s technology leadership by noting that its memory solutions are the building blocks for AI computing.
The AI narrative remains at the forefront. As artificial intelligence adoption increases, so does demand for sophisticated memory and data-handling capabilities. Micron, ranked seventh in the worldwide semiconductor industry, may sneak up on more investors as fund managers seek alternatives to Nvidia, whose explosive growth has fueled fears of overvaluation.
Broader ETF Exposure To Micron And Nvidia
In addition to individual stock holdings, investors can also obtain exposure to Micron and Nvidia via diversified AI-themed and semiconductor-based ETFs. VanEck Semiconductor ETF (NASDAQ:SMH), which covers 25 of the globe’s leading chipmakers, includes both Micron and Nvidia in its top holdings. Likewise, iShares Semiconductor ETF (NASDAQ:SOXX) offers diversified exposure to the sector where Nvidia will frequently hold disproportionate weight, and Micron represents diversification within memory solutions.
For investors seeking AI-focused plays, the Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) and the Roundhill Generative AI & Technology ETF (NYSE:CHAT) both hold Nvidia, providing indirect exposure to artificial intelligence-led growth. These diversified vehicles enable investors to ride the semiconductor rally without speculating solely on one stock.
The comparison to Nvidia is especially interesting. Where Nvidia (P/E at almost 51) has been the poster child of AI infrastructure, worries are growing that its shares have already factored in years of growth to come. Micron, on the other hand, remains under the radar, with its valuation less extended (P/E at almost 22), and its product mix directly correlated with accelerating AI demand.
For traders of ETFs, this creates the stage for new possibilities. Vehicles such as MUU enable participants to bet on Micron’s momentum with leverage, while more extensive ETFs such as SMH and SOXX provide a vehicle to take advantage of gains from both Micron and Nvidia in one package. As the chip giants’ market adjusts its ardor between them, Micron’s ETFs could be the silent winners of a shifting semiconductor landscape.
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