Hudbay MineralsNYSE: HBM

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In the closing of the recent trading day, HudBay Minerals (HBM) stood at $9.58, denoting a -0.42% change from the preceding trading day.

TORONTO, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) ( TSX, NYSE: HBM) senior management will host a conference call on Wednesday, November 13, 2024 at 11:00 a.m. ET to discuss the company's third quarter 2024 results.

TORONTO, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today announced that it has reached a final settlement with all plaintiffs in three civil lawsuits brought against the company regarding alleged actions that occurred in Guatemala in 2007 and 2009. This settlement concludes all outstanding legal matters related to Hudbay's former activities in Guatemala. Hudbay was named in the civil suits because of its ownership of the Fenix nickel project, which was acquired in 2008. In one of the lawsuits, brought by 11 female plaintiffs, the allegations against the Guatemalan company that owns the project predate Hudbay's ownership. In 2011, Hudbay divested itself of its holdings in Guatemala and has had no operations there since that time.

Micron Technology is thriving in the high bandwidth memory market, leading to a profit beat and strong forecast for the next quarter. The company's HBM3e shipments are scaling up, with expectations of significant revenue contributions by 2025 and a market share increase to 25%. Micron's 4Q24 earnings showcased a 93% YoY sales increase and a 23% operating income margin, driven by soaring HBM demand.

Micron is seeing growth in the HBM market but management's market share outlook of ~20% has negatively surprised me; I expected it to be higher given Samsung's lagging position. I believe the main positive surprise in Q4 was better gross margins delivery due to cost savings in DRAM production and better HBM yields. This is expected to continue. Micron still trades at a modest 32% premium vs its memory peers. I am not sure if this is justified as I doubt overall outperformance vs its competition.

Our downgrade thesis played out into earnings, and now we're upgrading Micron Technology, Inc. stock to buy. Micron is uniquely positioned to benefit from industry demand for HBM (used in AI) and should see better top-line growth and margins because of it next year. Management is also guiding for FY25 capex to be 35% of total FY25 sales and aiming for their HBM share of the market to reflect their DRAM.

Micron Technology is reaping the benefits of the AI boom, as its high bandwidth memory (HBM) chips are experiencing soaring demand.

The world's second-largest memory chipmaker SK Hynix said on Thursday it began mass production of a 12-layer version of the latest generation of high-bandwidth memory (HBM) chips, to meet demand from the current AI boom.