📈 Micron Technology: strong growth thanks to artificial inteligenci🖥️
Micron $MU is a leader in innovative memory and storage solutions that support advances in artificial intelligence and other compute-intensive applications. It brings to market high-performance DRAM, NAND and NOR memory and storage products that power the data economy from data centers to mobile devices.
Micron yesterday announced its financial results for the third quarter of its fiscal year 2024, which ended May 30. The results show that demand for artificial intelligence is the main driver of strong revenue growth, particularly in the data center business. Despite this, however, the stock has written down more than 7% since the results were announced.
Key numbers for the third fiscal quarter of 2024:
Revenue: $6.81 billion (prior quarter: $5.82 billion, prior year: $3.75 billion)
GAAP net income: $332 million ($0.30 per share)
Non-GAAP net income: $702 million ($0.62 per share)
Operating cash flow: $2.48 billion (prior quarter: $1.22 billion, prior year: $24 million)
According to President and CEOSanjay Mehrotra, strong demand for AI and efficient execution helped achieve 17% year-over-year revenue growth, which exceeded expectations. Micron is gaining market share in high-margin products such as high-bandwidth memory (HBM) and saw record sales from data centerSSDs .
💰Financial Health:
Net investment in capital expenditures: $2.06 billion
Adjusted free cash flow: $425 million
Cash, marketable investments and restricted cash: $9.22 billion
Micron also declared a quarterly dividend of $0.115 per share, payable on July 23, 2024.
🚀 The future is full of AI-based opportunities, and Micron is in a great position, in my opinion, to reach new record profits and highs in 2025.
What's your take on this company and its performance?
I think the cohesiveness is great. Growth in this sector has been driven mainly by fever in recent years. The company is at the top of its business and will continue to grow in my opinion. However, the stock could drop solidly by a few percent just like say $NVDA+0.3%. At some point, the cool down has to come. Over the past week, it looks like it may be coming.