📈✨ Micron Technology hits the highlights, before the results are announced!
Micron Technology $MU, a leading player in the memory chip market, is preparing to release its Q3 earnings results on Wednesday , June26. The company has announced that it expects a return to positive free cash flow (FCF), which could significantly boost stock market activity.
🔍 Micron Technology's management signaled a reversal of negative FCF last quarter , which had been negative in previous quarters. CFO Mark Murphy said in a conference call : "We expect positive free cash flow in the second half of fiscal 2024 and anticipate record sales in fiscal 2025."
Last quarter's adjusted FCF was -$29 million, a significant improvement over -$333 million from the previous quarter. This increase is supported by growing demand for memory chips for servers, graphics cards and artificial intelligence technologies.
Analysts forecast sales for the quarter ending May 31 to reach $6.67 billion, an increase of 14,6 % from the previous quarter and a 77 % from the same period last year. If Micron can achieve a positive FCF margin , we can expect growth.
🚀 Shares are on the rise thanks to artificial intelligence. On Monday, they hit an intraday record after Bank of America raised its target price to $170 from $144 and called Micron"America's best memory company." Further, the bank said the chipmaker will benefit from growing demand for artificial intelligence products. Today, however, the stock is writing off more than 6%.
💡 Edge AI and data centers as key players. According to researchers, the "an emerging market for artificial intelligence capabilities in devices, so-called edge AI," will steadily support AI-enabled data center hardware. They also expect Micron's sales to increase by2025 by 10 % and in 2026 by 12 %, with their earnings per share (EPS) estimates for those years increasing by 20 % a 21 %.
Shares of Micron Technology were up more than 3 % to $153.45 and have gained nearly 87% growth. This positive outlook suggests the company is on track for continued success thanks to growing demand for artificial intelligence and memory chip technologies.
Follow Micron's journey with me as it follows Nvidia's beautiful growth.
What do you think of this company?
A very high quality company that is worthy of consideration.
Micron is a great company. Now just improve the margins from last year and it will be a blast!