Transcript
A (0:00)
Foreigners keep winning, right? You're listening. Motley Fool Money. Welcome, fools. I'm your host, Tim Byers, and with me are two of my supernova colleagues, Alicia Alfieri and Keith Speight. Friends, we are here to review some big winners from 2025. And it's three of them. Micron Technology, Ticker Mu, Robin Hood Markets, Ticker H O O D and Newmont Corp. Or the former Newmont Mining Ticker nem. These were all fully caffeinated stocks this year, producing remarkable returns for those who've held. And today we're going to talk through each of them and make a prediction about whether these winners can keep winning. Because as David Gardner likes to tell us, winners tend to keep winning. So do these fit into that mold? And if so, what will winning look like? So, Keith, Leisha, you ready to dive in? You fully caffeinated? You ready to go?
B (1:18)
Absolutely, yeah.
C (1:20)
Ready.
A (1:21)
All right, well, let's do it. We're going to start with Micron, Micron Technology. So will Micron beat the market again in 2026? Let me tell you, this was a big year for the maker of memory technology. These are memory chips. So anytime you do you have chips that do processing and you have chips that, you know, help to take the data that you are going to do some processing and store that data, make that data available and that's what memory does. And Micron outperformed the market by about 143% year to date. That is outrageous. So there's some reasons for this and I'll give you some some overview the financials for fiscal 2025. So far we can see revenue jumping to 49% or this is what the projections are for 37.4 billion gross margins expanding to over 40%. Really, really big numbers. We also have huge returns in terms of high bandwidth memory. So this is a kind of technology that Micron has been leading the market in. And the best way I can describe high bandwidth memory, Alicia, is you take memory chips and you stack them, you make them like a little tiny skyscraper on your motherboard and they work together and they are pretty crucial for data center build out and AI build out. And there has been a lot of demand. So before I kick it to you here, let me give you this. So CEO Sanjay Mehrotra said that all HBM capacity was sold out for both 2024 and 2025. With 2026 mostly already committed. That sounds pretty good, Alicia. So when you look at Micron, what did you see for 2025 so far? And what's your prediction for 2026? Does it beat the market again?
C (3:29)
Yeah, well, so back in March of 2024, I think leadership forecasted that the company was going to be a big beneficiary of AI and they were right. Revenues have grown, margins expanded, profitability grew, including its ability to produce free cash flow, which doesn't always happen in a cyclical industry. This growth was due to the massive demand for memory, as you said, thanks to the huge data center demand. Plus the supply of memory tech was pretty tight this year. And oh by the way, Micron is a key supplier for Nvidia's Blackwell gpu. That said, so if we're talking about next year, so I think that AI fueled data center demands are going to continue. The trend is strong, but I think for this company the valuation expectations are a bit tricky. So right now they're at 100 times price to free cash flow. Not the best and not the worst it's been, but pretty pricey and it sets up pretty high expectations. And the only talking about one year here. So that doesn't give the company really a lot of time to grow into that valuation. If we were looking at a longer time frame, that would be different. So lots of expectations baked in and we know how the market reacts when its hopes are dashed with high flying stocks. Add to that the capacity build which should help the company in the long term, but will take some time and I think this company won't beat the market next year.
