Micron Technology, Inc. (MU) Fiscal Year 2024 Overview

Micron Technology, Inc. (MU) had a strong close to fiscal year 2024, with revenue rising 60% year-over-year and expectations for continued growth in fiscal 2025. CEO Sanjay Mehrotra attributed the success to record revenues in NAND and storage businesses, a robust competitive position with advancements in 1-beta DRAM and G8/G9 NAND technologies. The company is gearing up for increased data center and AI demand, projecting significant revenue growth in these sectors.

Key Takeaways

• Record revenues in NAND and storage, with gross margins up over 30 percentage points.
• Anticipated record quarterly revenue for fiscal Q1 2025, driven by high-volume production of advanced tech nodes.
• Expected cost reductions in DRAM and NAND for fiscal 2025.
• Strong demand in data centers, projected significant revenue growth in this area.
• Plans for global manufacturing expansion, including new facilities in Idaho, India, and China.
• Strong cash position of $9.2 billion and total liquidity of $11.7 billion.

Company Outlook

Micron forecasts record revenue for fiscal Q1 2025, guiding around $8.7 billion (+/- $200 million). Expected capital expenditures hover around $3.5 billion for fiscal Q1 and mid-30s percentage of revenue for the year. Non-GAAP EPS for fiscal Q1 projected at $1.74.

Bearish Highlights

• DRAM industry bit growth projected to decelerate from high-teens in 2024 to mid-teens in 2025.
• Increased inventory levels due to robust demand and preemptive customer purchases ahead of price hikes.

Bullish Highlights

• Strong competitive position with advancements in DRAM and NAND technologies.
• Expected growth in High Bandwidth Memory (HBM) demand.
• Record revenue achieved in automotive sector for the fourth consecutive year.

Misses

No specific misses were reported.

Q&A Highlights

• Focus on aligning with customer requirements in the HBM market.
• Anticipation of tight supply benefits both HBM and traditional DRAM sectors.
• Profitability improvements expected in FY’25 due to favorable supply-demand balance and focus on high-value products.

Micron’s successful finish to fiscal year 2024 signals positive prospects ahead. With strategic expansions and focus on high-demand sectors like AI and data centers, Micron aims for continued growth. The company’s cautious capital spending approach and supply management aims to preserve profitability and market share.

InvestingPro Insights

Micron has shown significant market performance, with a market cap of $105.78 billion. The company has raised its dividend for three consecutive years, signaling commitment to shareholder value. Analysts project sales growth aligning with Micron’s own revenue predictions. Micron’s liquid assets surpass liabilities, indicating a stable financial position as they expand manufacturing globally. The annual revenue increase of 61.59% is promising, even though gross profit margins remain weak at 22.35%. Analysts predict profitability in the upcoming year.

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Full Transcript – Micron Technology Inc (NASDAQ:MU) Q4 2024

The transcript includes insights from operators and leadership on Micron’s financial status, growth potential, inventory strategies, and market outlook on HBM, DRAM, and NAND products, which are essential in AI and advanced computing contexts.

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