Micron Technology Inc.’s (NASDAQ:MU) upcoming earnings report could be a key catalyst for ASML Holding NV (NASDAQ:ASML), as persistent tightness in memory markets may support years of semiconductor spending, according to an analyst.
AI Memory Demand Could Extend Semiconductor Spending Cycle
Ahead of Micron’s fiscal third-quarter results on Wednesday, Futurum Equities Chief Market Strategist Shay Boloor said investors should pay close attention to management’s commentary on the outlook for DRAM, NAND and high-bandwidth memory, or HBM.
“If $MU confirms tomorrow that DRAM, NAND and HBM tightness can last into 2027 or 2028 then memory companies have more reason to keep spending on capacity and advanced manufacturing tools,” Boloor wrote on X.
According to Boloor, such a scenario would be particularly significant for ASML because the company occupies a critical position in the semiconductor supply chain, supplying the lithography systems required to manufacture advanced chips.
Why Micron’s Outlook Matters For ASML
In an accompanying video, Boloor argued that ASML remains one of the most important equipment providers in the artificial intelligence ecosystem.
“There’s nobody more important than ASML in the AI economy for the equipment layer,” he said, adding that growing demand for advanced memory and logic chips typically translates into greater demand for lithography tools.
While ASML is not a memory-chip company, Boloor noted that memory capital expenditures remain crucial because increasingly advanced DRAM and HBM production requires sophisticated manufacturing equipment.
He also said that planned capacity expansions by Samsung Electronics Co. (OTC:SSNLF), SK Hynix Inc. and Micron have yet to eliminate supply constraints, suggesting AI-driven demand could continue to outpace supply growth.
ASML shares closed down 7.82% at $1,778.46 on Tuesday, though the stock edged 0.6% higher in Wednesday’s premarket trading to $1,789.21. Year-to-date, the shares are up by 52.82%, according to Benzinga Pro.
Micron Faces High Expectations
Wall Street expects Micron to report fiscal third-quarter earnings of $20.76 per share on revenue of $35.75 billion, representing sharp year-over-year growth.
The company has also exceeded both earnings and revenue expectations in each of the past eight quarters.
Price Action: Micron shares closed down 13.18% at $1,051.77 on Tuesday and increase 3.63% to $1,089.94 in Wednesday’s premarket trading.
According to Benzinga Edge Rankings, Micron ranks in the 99th percentile for Momentum, reflecting strong performance across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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