Temasek Holdings Pte. and Life Insurance Corporation of India Ltd. are expected to be among the largest sellers in the long-awaited initial public offering of the National Stock Exchange of India Ltd., reported Bloomberg, citing sources.

The IPO could raise about $2.5 billion and would mark one of India’s most significant capital market listings in years.

The offering is expected to be entirely a secondary sale, with existing shareholders collectively offering between 4% and 4.5% of NSE’s equity.

The person cited in the report said all of the exchange’s roughly 190,000 shareholders will be given the option to participate in the sale.

Major shareholders line up for secondary sale

LIC and Temasek are likely to be key participants in the IPO, alongside State Bank of India Ltd. and SBI Capital Markets Ltd., which are also expected to sell shares.

According to data published on NSE’s website, LIC holds a 10.72% stake in the exchange, while Temasek owns about 4.5%.

SBI Capital Markets held roughly 4.5% as of Dec. 31, 2025, and SBI’s direct stake stands at about 3.2%.

Shares of NSE are currently trading at around ₹2,150 in the unlisted market, according to Incredmoney.com.

That price implies a valuation of roughly ₹5.3 lakh crore ($58 billion), which would make NSE the world’s fourth-most valuable exchange among listed peers, based on data compiled by Bloomberg.

Board committee to oversee IPO preparations

NSE’s board is expected to form a committee in the coming days to oversee the IPO process, the person said.

The committee is likely to include senior executives of the exchange as well as representatives of major shareholders, including LIC and SBI.

The board is scheduled to meet on Feb. 6 to approve the financial results for the quarter ended December 2025 and is also expected to decide on the formation of the committee at that meeting.

The committee’s mandate is expected to include assisting the board in appointing investment bankers, negotiating fees, determining how many shares existing investors will sell, and filing the draft prospectus.

NSE is targeting a timeline of about three months to file the draft prospectus, the person added.

Deliberations are ongoing, and the details of the offering could still change.

Regulatory clearance after decade-long delay

The IPO preparations come after NSE said on Friday that it had received regulatory clearance to begin the listing process.

The approval follows nearly a decade of setbacks after the exchange first filed for an IPO in 2016.

That plan stalled after India’s markets regulator, the Securities and Exchange Board of India, raised allegations of corporate governance lapses and unfair market access at the exchange.

NSE later filed two settlement applications related to the case, proposing to pay close to ₹1,300 crore.

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Not many expected that Asian equities would outperform the US heading into 2026.

US equities as currently struggling to hold their ground as volatility picks up and investors are becoming anxious.

For investors used to seeing Asia lag until Wall Street gives permission, that reversal deserves more than a passing glance.

Analysts and investors are trying to figure out if this is a “one-off” event or a sign of something deeper that is rattling the global markets.

Are Asian markets really outperforming?

By the end of January, MSCI Asia ex-Japan was up in the high single digits on a total return basis, putting it on track for its strongest month in nearly three years.

The S&P 500 delivered only low single-digit gains in January, and did so unevenly, with large intraday swings driven by a handful of companies.

This gap is appearing from very different starting points.

US equities entered the year at record highs with valuations already reflecting strong earnings growth and stable policy.

Meanwhile, Asian equities entered the year priced for caution, slower growth, and persistent geopolitical risk.

Outperformance from that position tends to mean something different.

What also stands out is where the gains are coming from.

In Asia, strength has been broad.

Korea and Taiwan have benefited from the semiconductor cycle, Japan has seen steady inflows tied to corporate reforms, and parts of Southeast Asia have gained from supply chain investment.

In the US, index performance has remained tightly linked to a small group of technology companies.

When one of them disappoints, the index feels it immediately.

The currency effect investors often miss

Equity returns rarely travel alone. Over the past decade, a strong dollar often erased much of Asia’s local market performance for global investors, but things have changed now.

Since late 2025, several Asian currencies have stabilized or appreciated, even during periods of market stress.

The Korean won is a good example. After a sharp slide earlier in the year, it recovered as US Treasury officials pushed back against moves that appeared disconnected from fundamentals.

Similar patterns can be seen in Taiwan and Singapore.

This means that the currency no longer acts as a constant headwind.

When local equity gains are no longer offset by FX losses, global returns improve even if local markets do nothing extraordinary.

It also changes investor behavior, as allocators become more willing to buy dips when they are not also betting against the currency.

Meanwhile, the dollar has become less reliable as a one-way hedge.

Fiscal expansion, tariff uncertainty, and political noise have reduced its role as the default safety valve.

That does not mean a dollar collapse. It does mean the advantage US assets enjoyed from currency alone is no longer automatic.

Earnings breadth versus earnings dependence

The most important difference between Asia and the US right now sits inside earnings, not macro forecasts.

US equity performance remains highly dependent on a small group of companies delivering exactly what markets expect.

The recent selloff in Microsoft after strong headline earnings showed this clearly.

Profits beat estimates, yet concerns about cloud growth and AI investment timelines wiped out hundreds of billions in market value in a single session.

Asia looks different. Semiconductor supply chains benefit earlier in the cycle, long before end demand fully shows up in revenue.

Equipment makers, materials suppliers, and manufacturers see orders rise while monetization questions are still being debated elsewhere.

On top of that, Asia’s earnings are supported by sectors that have little to do with AI hype, including shipbuilding, capital goods, and energy transition infrastructure.

Corporate behavior also plays a role. Japan’s push for higher returns on equity and better capital allocation has translated into buybacks and dividends that anchor valuations.

Korea is moving more slowly, but directionally, the same pressure exists. These changes do not create headlines. They do, however, change how downside risk is absorbed.

Valuation tells a story about risk, not optimism

Asian equities still trade at a discount to US markets. That fact alone is not new. What is new is how that discount lines up with actual risk.

Asia remains priced for problems investors already understand. Slower Chinese growth, trade friction, governance concerns, and regional geopolitics are embedded in valuations.

For many markets, the bar for positive surprise is low.

US equities are priced for delivery. Growth must continue. Margins must hold. Regulation must remain manageable.

Any deviation forces repricing, as recent earnings reactions show.

This difference explains why capital flows have started to move. In January, emerging market and Asia-focused ETFs saw net inflows while US equity flows turned selective.

This is not leverage chasing returns. It is reallocation away from crowded trades where expectations are already high.

There is also a policy angle.

The Federal Reserve has little room to act quickly without risking inflation optics or political backlash.

Several Asian policymakers retain more flexibility, whether through tolerance for modest inflation or targeted support for strategic industries.

Markets value that optionality even when it is not immediately used.

The story does not rely on Asia becoming the world’s growth engine overnight.

It rests on relative pricing. As long as US equities demand near-perfect execution and Asia does not, the balance of risk and reward stays tilted.

Asian equities will not rise in a straight line. They will react sharply to China headlines, trade disputes, and currency moves.

Yet for the first time in years, investors are responding differently. Weakness is being bought rather than feared.

US disappointments are being sold rather than explained away.

That behavioral change tends to last longer than a single earnings season.

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Rolls-Royce share price has pulled back in the past few weeks, moving from a record high of 1.307p to the current 1,210p. It remains 1,800% above its lowest level in September 2022. This article explores some of the top catalysts for the RR stock in February 2026.

Rolls-Royce share price to react to earnings 

The main catalyst for the Rolls-Royce stock price is the upcoming full-year earnings, which will come out on February 26. 

These results will provide more color about its business last year and whether the growth trajectory accelerated.

The most recent consensus among analysts is that its full-year revenue came in at £19.5 billion, much higher than the £17.8 billion it made in the previous year. 

Additionally, analysts expect that its underlying EBIT rose to £3.26 billion, while its profit before tax (PBT) rose to £3.14 billion. 

Rolls-Royce Holdings’ growth will likely continue in the coming years, with analysts expecting its revenue to rise to £21.5 billion this year, followed by £23.3 billion and £25.3 billion in the next two consecutive years.

The company’s profitability is also expected to continue growing, with the underlying profit before tax (PBT) will move to £4.6 billion, up from £3.1 billion.

Still, on the positive side, there is a possibility that the company’s report will be much higher than expected, as it has done in the past. For one, General Electric Aerospace reported strong financial results and boosted its guidance, which is notable as their businesses are related.

Rising geopolitical tensions 

The Rolls-Royce share price will also react to the potential geopolitical events in February because it is one of the biggest players in the defense industry.

One of the main geopolitical events is the potential US attack on Iran. Such a move has a chance to lead to more demand for its military equipment, which have become more popular in the past few years. 

The company, like other defense contractors such as BAE Systems, Babcock International, and Leonardo, is benefiting from the ongoing boost in European defense spending as countries express their concerns about the United States.

Airbus earnings 

Rolls-Royce’s biggest business is its civil aviation, which provides engines to wide body aircrafts such as A350 and A330. Its engines also power some Boeing 787 planes.

Therefore, the upcoming Airbus earnings on February 19 will have some impact on its stock to some extent. Signs that Airbus continued boosting its production will be bullish for the Rolls-Royce stock.

The most recent results showed that Airbus delivered 507 aircraft in the past nine months of the year, while its revenue rose to €47.4 billion, while its EBIT moved to €3.4 billion.

Rolls-Royce share price technical analysis

RR stock chart | Source: TradingView

The daily timeframe chart shows that the Rolls-Royce stock price has pulled back in the past few weeks, moving from a high of 1,307p to the current 1,210p.

It has retested the key support level at 1,196p, its highest level in September last year. This means that it has formed a break-and-retest pattern, which is a common bullish continuation sign.

The stock has also formed a bullish flag pattern,which is made up of a vertical line and a descending channel. It has also moved above the 50-day and 100-day Exponential Moving Averages (EMA).

Therefore, the most likely scenario is where it rebounds, potentially to the year-to-date high of 1,307p. A move above that level will point to more gains, potentially to the psychological level at 1,500p. 

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Oracle has said it expects to raise between $45 billion and $50 billion in 2026 to expand capacity for its cloud infrastructure, signalling one of its largest capital-raising efforts as demand for artificial intelligence and cloud services accelerates.

The software company said the funds would be split roughly evenly between equity and debt, reflecting an effort to finance rapid expansion while preserving its investment-grade credit rating.

The announcement comes amid growing scrutiny of Oracle’s debt levels and its increasing reliance on a handful of large customers, particularly OpenAI.

Balanced mix of equity and debt

Oracle said it plans to raise around half of the funds through equity-linked and common equity issuances, including mandatory convertible preferred securities and a new at-the-market equity programme of up to $20 billion.

The remaining capital would be raised through senior unsecured bonds, which the company plans to issue early in 2026.

“Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others”, the company said in a statement.

“This funding plan reflects Oracle’s commitment to maintaining an investment-grade rating, prudent capital allocation, balance-sheet strength and transparency with investors as the company continues to expand its Oracle Cloud Infrastructure business,” it said.

Investor concerns over debt and exposure

Oracle, long viewed as a smaller cloud player compared with Amazon, Microsoft and Google, has faced criticism over the scale of its debt-fuelled expansion and the perceived concentration risk of relying heavily on a single customer.

Investors have increasingly questioned Oracle’s aggressive spending on AI infrastructure, particularly as its debt rises and its fortunes become more closely tied to OpenAI, which is not profitable and has yet to detail how it plans to finance its own infrastructure expansion.

Oracle is seen as being “way too exposed and levered to OpenAI, but in the worst way,” Mizuho trading-desk analyst Jordan Klein wrote in a note to clients late last month.

He said Oracle’s exposure is tilted toward OpenAI’s training operations, while the more attractive growth opportunity lies in inference—the stage where AI models generate predictions using new data.

Bondholders have sued Oracle

Last month, bondholders led by the Ohio Carpenters’ Pension Plan filed a lawsuit alleging that Oracle failed to disclose the extent of additional debt required to support its AI build-out.

The proposed class action was filed on behalf of investors who purchased $18 billion in Oracle notes and bonds issued in September, following a $300 billion contract with OpenAI.

The plaintiffs said they were surprised when Oracle returned to capital markets just seven weeks later to secure $38 billion in loans for data centre construction tied to the OpenAI deal.

Concerns over Oracle’s financial trajectory have also been reflected in credit markets.

The cost of insuring Oracle’s debt against default rose sharply in December to its highest level in at least five years.

Analysts see equity issuance as a positive

Analysts have argued that issuing equity could help reassure the market that Oracle is serious about maintaining its credit profile.

John DiFucci of Guggenheim said in a January note that equity issuance would send a clear signal of the company’s commitment to preserving its investment-grade rating.

Others see the funding plan as a step toward restoring confidence.

Siti Panigrahi of Mizuho said the announcement could reassure investors who had been seeking clarity on Oracle’s financing strategy.

“In our recent investor conversations, several investors highlighted the need for greater clarity on Oracle’s funding strategy and explicitly noted that an equity component would help restore confidence despite modest dilution,” he wrote.

The “balanced” plan released on Sunday “reduces uncertainty” and also could “reduce fears of over-reliance on debt financing,” Panigrahi said.

Gil Luria of DA Davidson & Co said that successfully executing the capital raise would mark an important turning point for Oracle, helping it address the financial pressures created by its ambitious expansion.

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The FTSE 100 and FTSE 250 Indices remained in a tight range on Monday as market participants waited for major macro events and earnings from British companies. This article explores some of the top catalysts to watch this week.

FTSE 100 and FTSE 250 indices to react to Bank of England interest rate decision

One of the main catalysts for the FTSE 100 and FTSE 250 indices will be the upcoming Bank of England (BoE) interest rate decision, which will happen on Thursday this week.

Economists polled by Reuters expect the bank to leave interest rates unchanged at 3.75% as officials remain concerned about the elevated inflation.

The most recent results showed that the headline Consumer Price Index (CPI) rose to 3.8% in December, higher than the bank’s target of 2.0%. Core inflation, which excludes the volatile food and energy prices, has also remained at an elevated level in the past few months.

Still, most officials, including Andrew Bailey, the bank’s governor, believe that inflation will continue falling in the coming months.

The BoE outlook explains why UK bond yields have remained unchanged in the past few months. Data shows that the ten-year bond yield has remained unchanged at 4.50%, while the five-year was at 4.6%.

Top UK companies to publish earnings 

The other key catalyst for the FTSE 100 and FTSE 250 indices are the upcoming earnings from some of the biggest companies in the UK.

GSK, a major pharmaceutical valued at over $103 billion, will release its results on Wednesday. 

Shell, the biggest energy company in Europe, will release it on Thursday. These numbers come as the energy market continued doing well because of the rising geopolitical tensions between the United States and Iran.

Unilever, a major player in the Fast Moving Consumer Goods Industry (FCMG), will release its numbers on Thursday.

More companies like Entain, Watches of Switzerland BT Group, Compass Group, and Vodafone will also publish their numbers.

On top of this, hundreds of American companies, including popular names like Amazon and Google, will publish their financial results. Historically, these companies often have an impact on the global financial market.

Commodity prices to impact UK stocks

The other major catalyst for the FTSE 100 and FTSE 250 indices is the performance of key commodities. Gold, copper, and silver prices tumbled on Monday, affecting key companies in the industry.

Indeed, data shows that the Fresnillo stock price crashed by 7% as silver plunged. Fresnillo is one of the biggest silver miners globally. It has been one of the best-performing companies in FTSE 100 Index in the past few months as silver jumped.

Endeavour Mining’s stock price dropped by 6.8% as gold prices dropped. Other mining companies like Antofagasta, Anglo American, Rio Tinto,and Glencore were among the top laggards in the FTSE 100 Index on Monday.

Geopolitical events to impact British stocks

The FTSE 100 and FTSE 250 indices will also react to the upcoming geopolitical developments in the Middle East.

Donald Trump has warned that he may attack Iran as soon as his armada near the region. Trump has accused the Iranian regime of killing protestors and for having nuclear ambitions. Also, Trump wants Iran to dismantle its civilian nuclear ambitions and limit its ballistic missile program.

An attack would have major implications in the US and UK equities as it would lead to higher oil prices and inflation. It would also disrupt the travel activity in the region, affecting companies like IAG and EasyJet.

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Crude oil declined more than 5% on Monday as easing tensions between the US and Iran erased the geopolitical premium on prices. 

Oil prices marked their steepest single-session drop in over six months on Monday. 

This fall was triggered by US President Donald Trump’s statement that Iran was engaged in “seriously talking” with Washington, a signal of de-escalation with the OPEC member country.

Geopolitical de-escalation triggers steepest drop

Brent crude futures fell by $3.31, or 4.8%, to $65.99 per barrel.

Similarly, US West Texas Intermediate crude also saw a decline, dropping $3.37, or 5.2%, to $61.85 per barrel.

The two contracts plummeted from multi-month peak values following remarks made by Trump over the weekend, which eased concerns about a potential military action against Iran.

A stronger US dollar was cited by analysts as a partial cause of the slump, which was also fueled by a wider sell-off in commodities, particularly significant losses in gold and silver.

“A broader correction across financial markets has added to the downward momentum,” Warren Patterson, head of commodities strategy at ING Group, said in a note. 

Iran’s top security official, Ali Larijani, stated that preparations for talks were in progress, just hours before Trump informed reporters on Saturday that Iran was “seriously talking” about negotiations.

IG market analyst Tony Sycamore noted that signs of de-escalation were present, citing both Trump’s comments and reports that the Iranian Revolutionary Guards’ naval forces had canceled plans for live-fire exercises in the Strait of Hormuz.

OPEC+ maintains supply pause amid easing tensions

The Organization of the Petroleum Exporting Countries and allies have confirmed that its policy of pausing supply increases will remain in effect through March, extending the three-month freeze initially agreed upon in November. 

This decision was reaffirmed over the weekend by eight major members, including Saudi Arabia and Russia, despite the recent surge in prices. 

While the extension is confirmed, the group provided no indications of its policy direction beyond the first quarter, ahead of its upcoming meeting scheduled for 1 March.

“All in all, the oil market remains well supplied, although the oversupply is not quite as high as initially assumed thanks to supply disruptions and slightly stronger demand,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said. 

This week’s inventory data is anticipated to offer clarity on the scale of the disruptions across the US, according to Lambrecht.

As soon as geopolitical risks no longer dominate the headlines as much as they do at present, prices are likely to fall again. 

Slack US drilling and bullish speculative positioning

Meanwhile, drilling activity in the US is still slack, with weak prices suppressing investment.

According to Baker Hughes data, the US oil rig count held steady at 411 last week. 

While the total rig count (oil and gas) slightly increased to 546, it remains 36 rigs below the level recorded a year ago.

“Expectations for a sizeable surplus this year suggest US crude output growth will remain constrained into 2026,” ING’s Patterson said.

Speculative positioning shows that recent geopolitical tension encouraged fresh buying ahead of today’s declines. 

Last week, money managers boosted their net long positions in ICE Brent by 29,947 lots, marking the largest bullish commitment since September 2025.

Net long positions for NYMEX WTI climbed for the eighth consecutive week, increasing by 9,557 lots to reach their highest level since August 2025. 

This rise was partially fueled by the extreme cold weather, which caused disruptions to refinery operations along the US Gulf Coast.

Moreover, all eyes in the oil market will be on the geopolitical narrative this week as easing tensions may lead to a more pronounced price drop with plentiful supply.   

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The S&P 500 Index and its ETFs, like SPY, IVV, and VOO, remained in a tight range close to the all-time high after key earnings from some of the biggest American companies last week. They also wavered after Donald Trump announced his nominee for the Federal Reserve on Friday. This article looks at some of the top catalysts for the index this week.

S&P 500 Index to react to key earnings 

The S&P 500 Index remained slightly below the all-time high after top companies like Microsoft, Apple, and Meta Platforms published their financial results last week. 

Apple reported strong earnings but warned about the memory shortage in the industry, while Microsoft’s stock dropped after the company noted that its cloud revenue growth was slowing. Meta Platforms reported strong financial results, pushing its stock to a record high.

33% of all companies in the S&P 500 Index have published their financial results, with the blended earnings growth of 11.9%. If this is the final figure, it will mark the fifth consecutive quarter of double-digit revenue growth.

This week will see more S&P 500 constituent companies publish their financial results. The most notable ones are companies like Amazon and Google.

The others are Palantir, Walt Disney, AMD, Merck, Pfizer, PayPal, Eli Lilly, Qualcomm, Uber, ConocoPhillips, and KKR. In total, over 50% of all companies in the S&P 500 Index will publish their results this week.

There will be major corporate news, including news that Bob Eiger is considering resigning before his term ends and that the deal by NVIDIA to invest in OpenAI was on ice.

Potential US strike on Iran

The other major catalyst for the S&P 500 Index will be on geopolitics. In a statement last week, Donald Trump warned Iranian leaders to talk with the United States about ending its nuclear program. This statement was notable as Trump claimed that he completely obliterated the program last year.

Most analysts believe that Trump’s goal in Iran is purely on regime change, a move that Israel has supported for years. 

Iran has threatened that any attack from the United States will attract a major retaliation, which explains why the crude oil price has jumped in the past few weeks, with the price of crude oil soaring to $70.

The country has some notable options, including disrupting trade at the Strait of Hormuz, hitting Israel, and attacking US bases in the region.

US non-farm payrolls data 

The other major catalyst for the S&P 500 Index and its ETFs will be the upcoming macro data, which will have a major impact on the financial market.

The US will publish the latest jobs numbers on Friday. Economists expect the data to show that the economy added over 70,000 jobs in January, while the unemployment rate dropped to 4.3%.

This report comes a week after the Federal Reserve delivered its interest rate decision. As was widely expected, the bank decided to leave interest rates unchanged between 3.50% and 3.75%.

Most importantly, the upcoming report comes a week after Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chair. While Warsh has supported some of Trump’s deregulation efforts, he has always been an inflation hawk.

Therefore, there is a likelihood that Warsh will become more like Jerome Powell, who promised Trump of rate cuts only for him to maintain a more hawkish view.

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Micron (MU) stock has been in a strong bull run since April 2025, when it bottomed at $62. It has soared to $415, making it one of the top gainers in the S&P 500 Index and Nasdaq 100. 

Despite this surge, the stock has more upside in 2026 as the artificial intelligence tailwinds remain. It is also seeing elevated demand for its Dynamic Random Access Memory (DRAM) and NAND memory as the global supply constraints remain. 

Micron’s stock upside is also supported by its cheap valuation metrics, bullish analyst forecasts, and its technicals. 

Micron Stock is Benefiting From Unprecedented Memory Demand

The ongoing AI spending and data center build-up have more room to run, even as concerns of the bubble bursting remain. In a recent note, Goldman Sachs analysts estimated that AI companies will spend over $525 billion this year.

Memory companies stand to benefit from this boom, which explains why firms like Micron, Sandisk, and Western Digital were the top gainers in the S&P 500 Index in 2025.

These stocks jumped because of the ongoing supply shortage in the High Bandwidth Memory industry, with supply for 2026 being sold out. 

In its recent earnings report, Sanjay Mehrotra, Micron’s CEO, noted that it had completed supply and pricing agreements for the year. He also noted that the HBM industry’s total addressable market would jump from $35 billion in 2025 to $100 billion in 2028. 

This growth is demonstrated by the company’s earnings, which have continued to beat analysts’ estimates. Its annual revenue grew from $27 billion in 2021 to $37 billion in FY’25, and analysts see it reaching $88 billion in 2027. 

Micron’s revenue growth will be accompanied by higher margins as it has higher pricing power. Indeed, in a recent note, analysts at Nomura Securities noted that Sandisk, another top memory company, could double the prices of its 3D NAND memory devices. 

The memory industry has always been characterized by booms and busts. This happened as companies boosted their supplies whenever demand rose. 

However, the complexity of the current HBM devices means that it is hard to boost supply. In Micron’s case, it will only be able to boost supply in the second half of 2027 when its Idaho fab comes online. It will be followed by the second fab in the state and the new one in New York. 

MU Stock is a Bargain in all Measures

It is always difficult to recommend a stock trading at a record high. However, a closer look at Micron’s numbers and growth prospects shows that it is a bargain. 

The most recent results showed that Micron’s revenue grew by 57% YoY to $13.6 billion. Its gross margin grew by 11 percentage points to 56.8%.

Wall Street analysts are optimistic that the company has more room to grow. The average estimate is that its second-quarter revenue will grow by 132% to $18.75 billion. Its annual revenue is expected to jump by 98% to $74 billion. Micron’s earnings per share is also expected to soar to $32.9 from the previous $8.29. 

Therefore, with such strong numbers and its market share, one would expect a premium valuation for the company. However, data shows that the company has a forward price-to-earnings (P/E) ratio of 11, much lower than other similar companies. SanDisk has a multiple of 32, while Western Digital has 23. 

Additionally, the company has a forward price-to-earnings-to-growth (PEG) ratio of 0.22, lower than the industry’s median of 1.06. 

Micron’s Rule-of-40 metric also illustrates its valuation discrepancy. It has a forward growth estimate of 98% and a net profit margin of 28%. This gives it a Rule-of-40 metric of 126%, higher than popular AI companies like NVIDIA and Palantir. 

Is Micron Stock a Good Buy?

Most Wall Street analysts are largely bullish on Micron’s shares. 25 analysts have a buy rating, while two have a hold. The average target for the stock is $333, representing a ~3.3% drop from the current level.

Micron analyst ratings | Source: TipRanks

However, some recent analysts have boosted their targets, with Mizuho’s Vijay Rakesh moving it from $290 to $390. JPMorgan’s estimate is $350, while Piper Sander and UBS’s targets are $400. The most upbeat analyst is Rosenblatt’s Kevin Cassidy, who sees it rising to $500. 

Technicals Suggest a Brief Pullback Followed by a Rebound

While Micron has strong fundamentals, technicals suggest that it will have a brief pullback followed by a rebound. The weekly chart below shows that the stock has gotten highly overbought, with the Relative Strength Index (RSI) and the Stochastic Oscillator moving to their extreme levels.

It also remains much higher than the 100-week Exponential Moving Average (EMA), which is at $138. These indicators mean that a brief pullback, potentially to $300 is possible. It will then bounce back and possibly end the year at $450.

The Bottom Line

Micron stock has been in a strong bull run, helped by the ongoing AI boom and its strong growth metrics. Its revenue and profitability growth will likely accelerate this year as the supply constraints in the memory industry remain. 

Most valuation models show that MU is a bargain, while most analyst have a buy rating on the company. These fundamentals mean that the stock has more upside to go. 

However, technicals suggest that the stock has become highly overbought, raising the possibility of a brief pullback as investors book profits. Such a pullback may form a good entry point for bulls. 

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European gas prices, already on a downward trend, face fresh uncertainty after heightened rhetoric between the US and Iran, fueled by statements from President Donald Trump, reignited fears over the security of the vital Strait of Hormuz—a transit point for a crucial one-fifth of the world’s seaborne LNG deliveries.

LNG shipments from US terminals are reportedly nearing a return to normal, with Bloomberg indicating that volumes have rebounded almost to the average seen in the first half of January, following a slump on Monday. 

This recovery aligns with earlier reports of a broader return to normal activities in the US.

While this offers some reassurance, the situation remains critical because EU gas storage is only at 43.5%, according to Commerzbank AG. 

In a typical winter, these levels would drop an additional 15 percentage points by the end of March.

“Whether this will happen depends, on the one hand, on demand: lower temperatures are now forecasted for Europe, although weather forecasts have fluctuated greatly recently,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report. 

On the other hand, it depends on imports: following the resumption of LNG exports from the US, the signs are at least better here. 

US LNG and European Import Dynamics

EU gas imports are currently showing a significant upward trend, according to recent analysis from the Bruegel think tank. 

Data collected for the initial twenty days of this year reveals that the European Union’s imports were a striking 14% higher when compared to the corresponding period in the previous year.

This notable increase in incoming gas supplies carries important implications for the Union’s energy reserves. 

Under the assumption of ceteris paribus—meaning all other factors remain constant—a higher volume of imports would naturally be expected to correlate with a reduction in the rate at which gas is withdrawn from storage facilities. 

This dynamic suggested a potentially easing pressure on reserves, which is a positive development for energy security, particularly during peak demand seasons. 

The extent to which this trend continues will be a key indicator for the EU’s resilience to potential supply shocks throughout the rest of the year.

US market: Henry Hub and inventory overhang

The happiness of one person often comes at the expense of another’s misfortune.

In the US, the front-month contract for Henry Hub was trading at just $3.75 per mmBtu on Thursday morning, around $3 lower than on Wednesday.

Lambrecht said: 

However, the massive decline was due to a contract change.

The recommencement of LNG shipments has already led to a slight increase in price across the Atlantic during trading.

US natural gas inventories dropped by 242 billion cubic feet in the last reporting week, exceeding market expectations, according to the US Department of Energy.

While the market has seen some recent inventory drawdowns, a significant overhang persists. 

Current inventory levels remain stubbornly high, resting at 5% above the five-year historical average. 

This deviation is a key concern for market watchers, as the rate of decrease has been disappointingly slow. 

Steep drop in stocks likely

Data from the most recent week shows that the change in this deviation is marginal, suggesting that the structural imbalance between supply and demand is not correcting itself at a pace conducive to sustained price recovery or market normalisation. 

The continued elevation of inventories acts as a ceiling on upward price movement, creating a bearish sentiment that weighs on the market despite other potentially positive fundamental indicators.

The impact of last weekend’s winter storm on the figures is apparently either minor or not yet reflected, according to Lambrecht.

A steep drop in stock values is expected during the present reporting week due to last week’s storm.

However, it remains to be seen whether there will be a record decline in stocks, as some expect.

At the time of writing, the Henry Hub natural gas contract on the New York Mercantile Exchange was at $4.098 per mmBtu, up 4.4%. 

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US producer prices climbed more than anticipated in December, driven primarily by a rise in service prices.

The Producer Price Index for final demand rose 0.5% month-on-month, accelerating from a 0.2% increase in November and surpassing economists’ expectations of a similar rise.

On an annual basis, producer prices increased 3%, unchanged from the previous month.

Services lead the price increase

The stronger-than-expected increase in producer prices was driven largely by services, which rose 0.7% in December.

Trade services played a particularly prominent role, with margins for wholesalers and retailers climbing 1.7%, accounting for roughly two-thirds of the increase in services prices.

More than 40% of the rise in final demand services was linked to a sharp jump in margins for machinery and equipment wholesaling, highlighting how supply chain adjustments and tariff-related costs are filtering through the economy.

Goods prices show mixed trends

Prices for final demand goods were flat in December after rising in November, reflecting divergent movements across categories.

Gains in goods excluding food and energy offset declines in energy and food prices.

Nonferrous metals recorded a notable increase, while prices also rose for residential natural gas, motor vehicles, soft drinks, and aircraft and related equipment.

At the same time, diesel fuel posted a steep decline, with gasoline, jet fuel, beef and veal, and iron and steel scrap also moving lower.

The mixed pattern underscores how inflationary pressures remain uneven, with certain sectors absorbing cost increases while others experience falling prices.

Tariffs and policy outlook in focus

Businesses had previously absorbed part of the impact of sweeping import tariffs, helping to contain inflation.

The latest data, however, suggest that firms are increasingly passing on these costs, raising the risk of broader price pressures.

The Federal Reserve recently kept its benchmark interest rate unchanged, with policymakers continuing to weigh the impact of tariffs on inflation.

Fed Chair Jerome Powell has noted that tariff-driven inflation could peak later in the year, implying that price pressures may intensify before easing.

Producer price data are closely watched by economists because several components feed into the personal consumption expenditures price index, the Federal Reserve’s preferred measure of inflation.

The December PCE figures, delayed by earlier disruptions, are scheduled for release later this month, adding uncertainty to the near-term inflation outlook.

Data delays add to uncertainty

The Bureau of Labor Statistics has now caught up on producer and consumer price reports that were delayed during the recent federal government shutdown.

However, lawmakers are again racing to avert another shutdown, which could disrupt upcoming data releases, including the next employment report.

As tariff effects begin to surface more clearly in producer prices, investors and policymakers alike are bracing for a potentially more volatile inflation trajectory in the months ahead.

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