For Immediate Release

Chicago, IL – October 14, 2026 – Zacks Equity Research shares Micron Technology (MU Quick QuoteMU - Free Report) as the Bull of the Day and Krispy Kreme, Inc (DNUT Quick QuoteDNUT - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Oklo Inc. (OKLO Quick QuoteOKLO - Free Report) , NuScale Power (SMR Quick QuoteSMR - Free Report) and NANO Nuclear Energy (NNE Quick QuoteNNE - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

Zacks Rank #1 (Strong Buy) Micron Technology manufactures and markets high-performance memory and storage technologies, including Dynamic Random-Access Memory (DRAM), NAND flash memory, NOR Flash, and other memory solutions. The Idaho-based company's solutions power leading-edge computing, consumer, networking, mobile, automotive, industrial, and data center products. The company's mission is to be a global leader in memory and storage solutions.

AI Demand & the DRAM Bottleneck

The DRAM technology Micron manufactures is critical to the artificial intelligence buildout because AI models depend on massive streams of data and model parameters that must be accessed, processed, and moved at ultra-high speeds to prevent the processor from stalling. AI computation is heavily "memory-bound," meaning the processor's speed is often limited by how fast data can be fed to it rather than how fast it can calculate. Recently, SpaceX CEO Elon Musk, whose company is a leading provider of compute, said that "Few realize that memory, not compute, is the rate limiter of the Agentic Era."

Micron is currently benefiting from a perfect elixir of soaring AI infrastructure demand reshaping memory and storage demand mixed with a tight global DRAM supply. Micron continues to benefit as hyperscalers jockey for AI supremacy and spend increasingly more CAPEX on AI infrastructure. Last quarter, Micron reported revenues that more than tripled year-over-year along with earnings-per-share that increased 10-fold.

Meanwhile, because supply is tight and Micron is one of only three major global DRAM suppliers, its gross margins have soared to more than 80%.

Micron: A Consistent Earnings Outperformer

Wall Street expectations remain high. Next quarter, Zacks Consensus Estimates suggest revenue will grow 352.68% while earnings spike 699.16%.  Nevertheless, Micron has proven it can beat high estimates. The memory leader has beaten Wall Street analyst expectations for 14 consecutive quarters, with an average beat of 21% over the past four.

High Demand Visibility

As of the fourth quarter, Micron had signed 26 take-or-pay strategic customer agreements (SCAs), which management estimates will represent more than 35% of revenues through 2030. Additionally, approximately three-quarters of that expected revenue has a defined pricing framework.

Micron Buybacks to Begin as CHIPS Act Restrictions End

Micron has faced a buyback restriction tied to the U.S. CHIPS Act agreement, under which the company received a $6.1 billion reward. However, the share buyback restrictions end on December 9th. Recently, Micron's board approved a $35.16 billion share repurchase program. The share buyback will have a bullish impact on the supply/demand dynamics for Micron shares.

Micron has a Reasonable Valuation

Micron not only has one of the fastest-growth rates on Wall Street, but it also sports one of the most attractive valuations. Micron's P/E ratio is currently just 13.63x.

Micron Technical View

Micron shares are setting up in a bullish monthly flag pattern.

Bottom Line

Amid critical DRAM bottlenecks, surging gross margins, and expanding enterprise agreements, Micron is well positioned to continue benefiting from the ongoing AI infrastructure boom.

Bear of the Day:

Zacks Rank #5 (Strong Sell) Krispy Kreme, Inc is a donut and sweet treat brand best-known for its signature Original Glazed doughnut. The company sells its products through brick-and-mortar locations. Additionally, Krispy Kreme sells through distribution outlets like grocery stores, gas stations, and major fast-food partners such as McDonald's.

GLP-1 Use Surges

According to a recent Gallup poll, 11% of U.S. adults, or roughly 28 million people, are on GLP-1 weight-loss drugs such as Ozempic, Wegovy, and Mounjaro (up from 11% in 2024). Meanwhile, the Gallup poll does not include the many patients who have found alternative, cheaper paths to access unregulated versions of these drugs. GLP-1 drugs delay gastric emptying and signal fullness to the brain. 

According to Morgan Stanley, consumers remove confectionary, baked goods, and salty snacks from their diets. In fact, multiple studies suggest that sweet bakery purchases plunge nearly 10% once a patient starts these medications. Given that the majority of Krispy Kreme's business relies on high calorie, sugary items, the rapid rise of GLP-1s is a significant long-term headwind for the company.

Krispy Kreme: Relative Weakness & Low Share Price

Krispy Kreme shares have chronically underperformed in both the short and long term. Over the past 5 years, DNUT shares have lost 78.8% of their value while the S&P 500 Index has gained 85.4%. With no end in sight to the bearish fundamentals, and little in the way of bullish catalysts, the persistent relative weakness should be a red flag for prospective investors.

Additionally, Krispy Kreme's stock currently trades at ~$3 per share. Stocks that trade for less than $10 per share typically deter institutional investors because they raise liquidity, scalability, and regulatory concerns. Because institutional investors have the deepest pockets and drive long-term moves, share price action is another problem for Krispy Kreme.

Krispy Kreme Doughnuts: A Consistent Underperformer

Wall Street analysts continue to hold a bearish outlook on Krispy Kreme. Zacks Consensus Analyst Estimates suggest that the company will deliver negative revenue growth through 2027.

Meanwhile, the company's earnings surprise history has been spotty. Krispy Kreme has missed Wall Street expectations in 8 of the past 19 quarters.

An Ugly Balance Sheet

On top of tepid growth, high CAPEX, thin operating margins, and a heavy debt load plague Krispy Kreme. Its debt-to-equity ratio has nearly tripled since 2022.

Bottom Line

Krispy Kreme faces severe long-term growth challenges as the rapid adoption of GLP-1 weight-loss medications directly impacts demand for sugary baked goods. Combined with chronic relative weakness, negative revenue growth, and soaring debt, DNUT shares remain an avoid.

Additional content:

OKLO Builds on Groves Progress to Expand Isotope Business

Oklo Inc.is advancing its plans to establish a domestic isotope supply chain through its Groves-1 Isotope Test Reactor in Texas. The facility is designed to support the development of isotopes used in cancer treatments, manufacturing, scientific research and national security. The project has already cleared important regulatory and operational milestones, including startup authorization from the U.S. Department of Energy ("DOE") on July 23, 2026, and first criticality on Aug. 5, 2026.

OKLO developed Groves on privately owned land using private funding and commercially sourced equipment, alongside components manufactured by the company. The facility reached first criticality in just over 11 months from groundbreaking, with substantial construction completed in 229 days. The project provided experience in reactor construction, equipment installation, regulatory reviews and nuclear operations. Management plans to apply these lessons to future isotope facilities, potentially improving project execution and shortening development timelines.

OKLO is also strengthening its isotope supply chain. In September 2026, the company received two grams of enriched ytterbium-176, which can be converted into lutetium-177 through reactor irradiation. Lutetium-177 is used in targeted cancer treatments. Securing this material supports the company's efforts to develop domestic production capabilities and reduce reliance on overseas suppliers.

From an investment perspective, Groves gives OKLO practical operating experience to support its isotope business expansion. Management expects research-scale isotope production after further commissioning, while its NRC-licensed Idaho laboratory may generate earlier commercial revenues. Although commercial-scale production remains under development, these initiatives provide opportunities to expand OKLO's business beyond nuclear power generation.

The growing demand for reliable, carbon-free electricity is encouraging greater investment in advanced nuclear technologies. Alongside isotope production, the development of smaller nuclear reactors is creating opportunities to serve utilities, industrial customers and data centers.

Advanced Nuclear Reactor Developers Eye Growth Opportunities

NuScale Power is among the leading developers of small modular reactor technology and is the first company to receive U.S. Nuclear Regulatory Commission approval for a design. NuScale Power is working with partners on projects in the United States and overseas, including Romania, while advancing plans to support large-scale power deployment. NuScale Power believes its modular reactors can deliver reliable, carbon-free electricity for utilities, industries and AI-driven data centers, keeping NuScale Power at the forefront of the commercial small modular reactor market.

NANO Nuclear Energy is focused on smaller microreactors through its KRONOS MMR design. The company is preparing to begin the NRC licensing process for its first deployment at the University of Illinois after its construction permit application is formally accepted. At the same time, NANO Nuclear is pursuing opportunities in AI data centers, industrial facilities and defense applications while expanding partnerships that could support future commercialization.

The Zacks Rundown on OKLO

Shares of Oklo have lost more than 80% over the past year.

OKLO currently has an average brokerage recommendation (ABR) of 1.92 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. 

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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