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High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
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Micron Forecasts Billions in HBM Revenue by FY2025, Eyes AI Demand Boom

Micron Technology Inc. (NASDAQ: MU) projects a substantial revenue surge from high bandwidth memory (HBM) sales, with expectations to leap from hundreds of millions in FY2024 to billions in FY2025. This forecast aligns with Micron’s broader ambitions to match its HBM market share with its overall DRAM market share by CY2025, according to CEO Sanjay Mehrotra during the Q3 FY2024 earnings call.

Key Highlights:

  • Revenue Projections: Micron’s HBM sales are set to soar, anticipating billions in revenue by FY2025, a significant jump from the previous fiscal year.
  • Customer Base: Nvidia (NASDAQ: NVDA) stands as a key customer, particularly for Micron's HBM3E.
  • Product Development: The company is advancing its HBM technology, working on HBM4 and HBM4E models.
  • Market Dynamics: The tight supply of DRAM and NAND memory for CY2024 is expected to enhance profitability and ROI, critical for future investments.
  • AI Demand: Increasing demand for AI PCs, AI smartphones, and data center AI is poised to drive record revenue. The upcoming PC replacement cycle, spurred by the end of Windows 10 support, will further boost demand.
  • Strategic Investments: Micron has secured a preliminary agreement for $6.1 billion in grants from the U.S. federal government under the CHIPS and Science Act, earmarked for semiconductor plants in Idaho and New York.

Takeaways for Investors:

  1. Revenue Growth: Micron’s projected revenue growth in HBM indicates strong market positioning and potential stock appreciation.
  2. AI and Data Center Demand: The surge in AI-driven demand presents a lucrative opportunity for sustained revenue growth.
  3. Supply Constraints: Investors should note the potential benefits from tight DRAM and NAND supply, likely to improve margins.
  4. Government Support: The substantial federal grants reflect strong government backing, enhancing Micron’s long-term growth prospects.

Investor Actions:

  • Monitor AI Developments: Keep an eye on AI market trends and Micron’s role in supplying memory for AI applications.
  • Evaluate Supply Chain Dynamics: Consider the implications of DRAM and NAND supply constraints on profitability.
  • Assess Strategic Initiatives: Review the impact of government grants and strategic investments in semiconductor fabrication.

Micron’s shares experienced volatility, initially dropping as much as 7% in post-market trading on Wednesday. However, the long-term growth prospects driven by AI demand and strategic investments offer a compelling case for investors.

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