Hey everyone, Hirokichi here. With earnings season in full swing, this week I’m picking one stock each from Japan and the U.S. that caught my personal attention. This time it’s SCREEN Holdings (7735), a major Japanese semiconductor equipment maker, and Micron Technology (MU), the U.S. chipmaker riding the AI memory boom.
SCREEN Holdings (7735): Raises Full-Year Guidance and Dividend
SCREEN Holdings is a Kyoto-based company that holds the world’s top share in semiconductor “cleaning equipment” used in the chipmaking process. It makes machines that wash away impurities from the surface of wafers (the thin discs that serve as the base material for semiconductors), and demand has been rising alongside the expansion of AI chip production.
After the market close on July 28, the company reported earnings for the first quarter (April-June) of fiscal year ending March 2027. Consolidated ordinary income for the quarter fell 37.2% year over year to 15.4 billion yen, a weak start on its own. However, the key point is the full-year outlook: the company raised its ordinary income forecast from 150.0 billion yen to 156.5 billion yen, a 4.3% upward revision, and lifted its expected profit growth rate from 20.7% to 25.9%, adding further upside to what was already a projected record profit (its first in two years). It also raised its annual dividend plan from 175 yen to 183 yen, an increase of 8 yen (source: Kabutan News).
As this chart shows, the full-year ordinary income forecast was lifted from 150.0 billion yen to 156.5 billion yen, meaning that in contrast to the quarterly profit decline, the full-year trend remains one of growth.
SCREEN’s Stock Price and What Investors Should Watch
The stock closed at 15,895 yen on July 28, up 45 yen (+0.28%) from the previous day — a muted reaction on the day itself. Since the earnings were released after the market closed, how investors evaluate the upward revision and dividend increase should become clearer in the following sessions.
On the positive side, the quarterly profit decline appears to be a one-off factor, the full-year outlook still points to a record profit, and the dividend increase is a clear signal of the company’s commitment to returning value to shareholders. On the other hand, there are things to keep in mind: quarterly profits can swing significantly, which can make a single quarter look like bad news in isolation as it did this time, and the semiconductor equipment industry itself is highly exposed to the capital spending cycles of its customers — something long-term holders should factor in.
Micron Technology (MU): Market Cap Crosses the Trillion-Dollar Mark
Micron is a U.S. semiconductor maker that produces DRAM and NAND flash memory. In recent years, demand for its high-performance memory for AI servers, HBM (high bandwidth memory, a stacked memory type built to support the processing speed of AI chips), has been driving explosive growth in results.
In results announced in June for the third quarter (March-May) of fiscal year 2026, revenue surged 346% year over year to $41.46 billion. Gross margin reached 84.9%, and non-GAAP net income hit $28.86 billion. For the following fourth quarter (June-August), the company guided for revenue of $50 billion with a gross margin of roughly 86%, and said its entire 2026 HBM production capacity has already been allocated to customers — in other words, sold out (source: Micron Technology, Inc. official release). On the back of these results and the demand outlook, the stock’s market cap crossed the $1 trillion mark.
As this chart shows, revenue jumped from $9.3 billion in the same quarter a year earlier to $41.46 billion in the most recent quarter, making it easy to see just how large an impact the HBM boom has had.
Micron’s Stock Price and What Investors Should Watch
Micron’s stock hit a 52-week high of $1,255, then fell nearly 30% at one point after entering July. It has since recovered, rising more than 8.5% over the past five trading sessions to close at $884.99 on July 27, with a market cap of roughly $1.04 trillion.
On the positive side, HBM demand continues to outstrip supply amid expanding AI infrastructure investment, giving Micron real pricing power (the ability to raise prices and still sell out). Revenue and profit have both kept setting new records. On the other hand, the memory chip industry is known for its boom-and-bust “silicon cycle,” and as this month showed, the stock can swing wildly on shifting expectations, falling nearly 30% in under a month. Micron’s next earnings report is scheduled for September 29, and whether it can deliver numbers in line with its bullish guidance will be the key thing to watch.
Looking Ahead
What both of these companies share is a strong tailwind from expanding AI-related investment. Looking ahead, I think there are three things worth watching: (1) how SCREEN’s stock reacts in the sessions following its earnings, along with capital spending trends across the semiconductor industry; (2) whether Micron can deliver numbers in line with its guidance at its next earnings report in September; and (3) staying mindful that even strong earnings can trigger “sell the news” reactions for both stocks, so it pays not to get swept up in short-term, expectation-driven moves.
I’ve also written before about AI and data center-related stocks more broadly, so if you’re interested, check that out too. → [Explainer] Why Data Centers Are the Beating Heart of the AI Era — 8 Notable Japanese and U.S. Stocks to Watch
Last week’s “Weekly Stock Picks” covered Toho (9602) and Intel (INTC). Check that out too → [Weekly Stock Picks] Toho (9602) Jumps as “Chiikawa” Hits Theaters & Intel (INTC) Surges 9% on AI-Driven Earnings – One Stock Each From Japan and the U.S.
There’s plenty of material moving the market again this week. Let’s keep at it, slow and steady. See you next time!
* This article is for informational purposes only and does not recommend any specific investment. Please make investment decisions at your own responsibility.
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