Micron Stock And 2 AI Infrastructure Picks After Amazon AWS Growth

Cloud computing and AI infrastructure are back in focus after Amazon reported US$200.61b in Q2 revenue and 37% year on year growth in AWS, both ahead of market forecasts. The stock jumped over 9% on the news, even as heavy AI related spending pulled free cash flow down to a US$7.6b loss over the past year. This mix of strong cloud demand and intense investment has clear implications for related stocks. In this article you will see 3 companies from our Cloud Computing and AI Infrastructure screener that are most directly exposed to this news.

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Everspin Technologies (MRAM)

Overview: Everspin Technologies develops and sells magnetoresistive random access memory, or MRAM, which is a non-volatile chip technology used when data needs to be stored quickly and retained without power. Its Toggle MRAM, spin-transfer torque MRAM and sensor products are used in industrial, medical, automotive, aerospace and data center equipment, supplied to hardware manufacturers worldwide.

Operations: Everspin Technologies generates essentially all of its US$56.9m in revenue from semiconductor products, primarily MRAM memory and related sensors.

Market Cap: US$303.2m

Amazon’s strong AWS performance has pushed high performance memory back into the spotlight, and Everspin Technologies sits in the middle of that theme with MRAM chips that can support AI accelerators and cloud infrastructure where fast, durable storage is critical. The company has moved from small early profits to periods of stronger earnings, with recent calls highlighting positive net income, solid gross margins and a debt free balance sheet with growing cash. At the same time, this is a small cap stock with heavy dependence on a niche technology and contracts, as well as share price volatility and insider selling. Investors seeking exposure to MRAM’s role in data centers and aerospace while remaining mindful of these risks may find Everspin Technologies a candidate for further research.

Everspin Technologies sits at the crossroads of AI accelerators and data centers, yet the real story may be how its cash position and lack of debt shape the risk profile. Get the full picture in the Everspin Technologies financial health report

Micron Technology (MU)

Overview: Micron Technology designs and manufactures memory and storage chips such as DRAM, NAND and high bandwidth memory that are used in cloud data centers, AI accelerators, PCs, smartphones and cars. Its products are sold globally under the Micron and Crucial brands to hyperscalers, device makers and industrial customers.

Operations: Micron Technology generates most of its revenue from the Cloud Memory Business Unit at US$31.3b, the Mobile and Client Business Unit at US$27.2b, the Core Data Center Business Unit at US$21.2b and the Automotive and Embedded Business Unit at US$10.5b, with a small US$19m from all other activities.

Market Cap: US$987.5b

Micron Technology is closely aligned with Amazon’s AI and cloud spending, supplying the DRAM, NAND and high bandwidth memory used in large AI models and dense data centers. Recent results show very strong profitability, high EBITDA margins and sizeable free cash flow, supported by multi year customer agreements that offer revenue visibility and price floors. The stock also involves risks, including heavy capital spending needs, intense competition and sensitivity to memory cycles and geopolitics. For investors who want direct exposure to AI infrastructure and are evaluating both potential strengths and trade offs, Micron’s combination of contracts, US manufacturing build out and volatile share price may warrant closer examination.

Micron’s accelerating AI memory demand and sizeable free cash flow create a story that looks powerful on the surface. The real question is how those multi year contracts and capital needs fit together in the 4 key rewards and 3 important warning signs (2 are major!)

Nuix (ASX:NXL)

Overview: Nuix develops software that helps governments, regulators and large corporations search, analyze and visualize huge volumes of data so they can run investigations, manage legal discovery and address data privacy and security issues.

Operations: Nuix generates all of its A$237.5m in revenue from software and programming, with A$121.9m from the Americas, A$44.7m from Asia Pacific and A$70.9m from Europe, the Middle East and Africa.

Market Cap: A$420.1m

Nuix gives you exposure to the growing need for cloud based analytics and investigation tools as more data moves into environments like AWS, while its Nuix Neo platform and shift toward subscriptions aim to make revenue more predictable. Recent results highlight operating leverage, higher gross margins after hosting cost optimisation and positive cash generation, yet the company still faces legal expenses, restructuring costs and customer retention questions, particularly in North America and EMEA. The stock is positioned within the higher growth segment of the market and it trades at a discount to some intrinsic value estimates, although the P/E is not low. For investors following the cloud and AI infrastructure theme, the focus is on how Nuix balances potential growth against funding risks and ongoing one off items.

Nuix’s push toward subscriptions and higher gross margins may be masking a bigger shift in the quality of its earnings and cash flows. See how that trade off really looks in the analysis report for Nuix

The three stocks in this article are only a starting point, and the full Cloud Computing and AI Infrastructure screener surfaces 42 more companies tied to cloud computing, AI infrastructure and data centers that could have equally compelling narratives. Use Simply Wall St to identify and analyze the specific catalysts, financial traits and business narratives that matter to you so you can focus on the highest conviction opportunities across this theme.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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