Micron Technology: HBM Memory Growth and Stock Potential

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Introduction.

AI semiconductors are attracting increasing attention,NVIDIAMicron Technology has attracted attention because of its close relationship with

Micron's High Bandwidth Memory (HBM) memory is essential for NVIDIA's cutting-edge AI semiconductors to maximize their performance.
Focusing on Micron Technology, a leader in this field, we will delve into its business, its unique strengths, and its future prospects.

What is Micron Technology (MU) and what is its business?

• Micron Technology is a multinational semiconductor manufacturing company headquartered in Boise, Idaho, USA.
• Micron manufactures DRAM, NAND, NOR, and 3D XPoint™ memory, which are used in a wide variety of computing, data center, mobile device, embedded product, automotive, and industrial applications.
• Founded in 1978, the company started out as a semiconductor design company with only four people and grew into an industry leader through innovation and strategic acquisitions, contributing to numerous semiconductor innovations.
  In particular, the introduction of state-of-the-art process technologies in DRAM and NAND technologies has improved product performance and efficiency.
• Micron is also active in environmental, social, and governance (ESG) initiatives, maintaining high corporate sustainability and ethical standards. This includes the promotion of diversity and inclusion, and environmental stewardship.
• The company also focuses on the development of new memory types and offers innovative memory solutions such as 3D XPoint. These memories are fast, durable, and offer significant performance improvements over conventional DRAM and NAND.

Micron Technology company information is below.

• Company Name: P.O. Box Micron Technology, Inc.
• Date of Establishment: (Months)1978
• Name of Representative:.Sanjay Mehrotra
• Official website:. https://jp.micron.com/
• Principal Business:.DRAM, NAND, NOR, and 3D XPoint™ memory manufacturing

What are Micron Technology's (MU) main products and services?

Micron Technology is a semiconductor company that manufactures DRAM, NAND flash memory, NOR flash memory, and 3D XPoint™ memory.
These memory products are used in fields as diverse as computing, mobile devices, data centers, and the automotive industry.

One of the most recent mainstay products is HBM3E memory.
This memory is designed to accelerate AI innovation and can operate at 30% lower power consumption than competitive products.Micron also offers the market a high-speed, high-capacity 128GB DDR5 RDIMM, which is optimized for server applications.

Micron also offers high-performance SSDs, with a lineup of products especially suited for industrial and automotive applications.
This includes the industry's first 200+ layer QLC NAND client SSD.

These products are designed to meet the latest computing needs with faster data storage and access.

What is HBM memory technology?

High Bandwidth Memory (HBM) memory technology refers to a new generation of memory technology optimized for high-performance computing applications.
The main feature of this technology is that it offers very high bandwidth and low power consumption compared to conventional memory.

HBM memory consists of multiple DRAM layers stacked on a chip and silicon interposers connecting them.
This stacked structure shortens the physical distance between memory chips and allows data to be exchanged at high speed.

In addition, the use of interposers significantly increases the number of connection points between chips and improves the efficiency of data transfer.
HBM memory is used primarily in high-performance computers, servers, high-end graphics cards, and other applications that require large amounts of data processing and high-speed access.

By this technology,The overall performance of the system will be improved and energy efficiency will be improved, contributing significantly to the reduction of data center operating costs.
HBM memory technology is being touted as a next-generation memory solution due to its structure and performance.

The features and benefits of HMB memory are summarized below.

high bandwidth

HBM memory offers much higher data transfer rates than regular DRAM. This is made possible by the wide interface and fast I/O (input/output) rates. This high bandwidth is very advantageous for applications that need to process large amounts of data quickly.

stack structure

HBM uses stacked memory technology, in which multiple DRAM dies (chips) are stacked vertically and connected to each other through silicon interposers. This stacked structure reduces the physical distance between memory dies, thereby reducing data transfer latency.

energy-saving

HBM operates at lower voltages, thus reducing power consumption. This is,This is especially beneficial in data centers and server operations where energy consumption must be reduced.

Compact design

HBM's stack structure and interposer technology reduce the area occupied on the board. This allows the overall device size to be kept small, making it suitable for mobile devices and compact systems.

These characteristics make HBM a superior choice in terms of performance and efficiency compared to traditional memory solutions for use in high-performance computing, servers, high-end graphics cards, and AI processing.

What's so great about Micron Technology (MU)?

Micron Technology (MU) is known for its prominence in the semiconductor industry.
The reason for this is the company's sustained progress in technological innovation.

Particularly,EDeveloping cutting-edge products such as DRAM and HBM3E memory utilizing UV (extreme ultraviolet lithography) technology, these products are characterized by high performance and low power consumption, which are essential in the AI semiconductors offered by NVIDIA.

In addition, Micron has a large manufacturing capacity and can respond quickly to global market demand.
This high-volume production capacity has helped the company build a strong position in the industry.

In addition, the company has a diverse product portfolio that includes DRAM, NAND, NOR, and 3D XPoint™ memory, which are widely used in applications ranging from data centers and mobile devices to automotive and industrial applications.

Micron has established itself as the market leader in performance, especially in products for data center and AI applications, and the combination of these strengths keeps Micron at the forefront of technological innovation and leadership.

Who is Micron Technology's (MU) customer base?

Micron's customer base is diverse, but primarily includes companies and organizations in the following areas

• Computing and Mobile Device Manufacturers:.Customers will be major manufacturers of memory products used in PCs, servers, smartphones, and other devices.
• Data CentersIt provides memory and storage solutions for data centers that demand high performance. This includes high-bandwidth memory products that accelerate AI and big data analytics.
• Automotive Industry:.The company also offers in-vehicle memory solutions, featuring products that are compatible with advanced automotive technologies such as automated driving technology.
• Industrial and enterprise applications:.The company also produces high-durability memory products that are incorporated into industrial equipment and infrastructure, and are intended for use in environments where reliability is required.
• Aerospace and Defense:.For the particularly demanding aerospace and defense sectors, the company offers memory solutions that can maintain high performance under specific environmental conditions.

In this way, Micron Technology leverages its advanced semiconductor technology to meet customer needs across a very broad range of industries.

What is the relationship between Micron Technology and NVIDIA?

Micron Technology has a close working relationship with NVIDIA and plays a particularly important role in supplying the high-bandwidth memory technology needed for high-performance GPUs.

NVIDIA's latest GPUs use Micron's GDDR6X memory, which provides high performance in real-time ray tracing and AI applications.

Also,Micron also supplies HBM3E memory to NVIDIA, which supports next-generation GPUs for AI applications.
This type of collaboration increases competitiveness in the semiconductor market by combining the technological strengths of both parties.

What makes Micron Technology a focus of attention in the AI semiconductor area?

There are several factors that have made Micron Technology a focus of attention in the AI semiconductor space, but the main points are as follows

Evolution of High Bandwidth Memory Technology (HBM)

Micron has developed a high-bandwidth memory technology called HBM3E, which dramatically increases data processing speed in AI applications.
This technology is particularly promising for use in the field of AI, as it requires the ability to quickly process large amounts of data for AI calculations

Energy Conservation and Efficiency

HBM3E memory offers approximately 30% power savings compared to competitive products, and its energy efficiency is also gaining recognition in the AI field.
This contributes to lower operating costs for data centers and other facilities, and is attracting attention as a more sustainable technology solution.

Strategic partnerships and market position

Through its long-term collaboration with NVIDIA, Micron supplies memory solutions for AI applications. These strategic partnerships strengthen Micron's position in the AI semiconductor market.

Due to the above factors, Micron Technology has earned a strong reputation in the field of AI semiconductors and will continue to expand its influence in the future.

What is the trading market?

Micron Technology trades on the NASDAQ Global Select Market under the ticker symbol "MU"

What are the sectors, industries, and themes to which Micron Technology belongs?

sector

Information TechnologyMicron Technology is part of the Information Technology sector and develops and provides semiconductor memory and storage solutions for data processing, storage, and communication.
This sector is rapidly evolving in response to technological innovation and market demand, and Micron is supplying products in line with this trend.

type of industry

Semiconductors:.Specifically, Micron is classified in the semiconductor industry. The company manufactures memory products such as DRAM, NAND flash, and NOR flash, which are essential to computers, mobile devices, servers, and many other electronic devices.

Themes belonging to

Data Centers and AI:.Micron's business is focused on providing high-performance memory solutions for data centers and artificial intelligence (AI) applications.
This includes the development of high-bandwidth, energy-efficient memory technologies that contribute to the operational efficiency and sustainability of data centers.

Dividends?

Micron Technology pays an annual dividend of $0.46,Dividend yield is approximately 0.401 TP3T

What is the size and growth potential of the industry to which Micron Technology (MU) belongs?

Today's semiconductor industry is very dynamic and expected to grow.
The size of the global semiconductor market is expected to reach approximately $617 billion in 2024, growing at approximately 16.61 TP3T year over year.
This growth will be driven by increased demand for data centers and artificial intelligence (AI) applications.

Particularly,The memory market is projected to grow significantly in 2024, with Dynamic Random Access Memory (DRAM) revenues expected to reach $87 billion, up 881 TP3T from the previous year.
Also,NAND flash revenue is also projected to increase by 49.61 TP3T in the same yearThese growths are important factors supporting the expansion of the overall semiconductor market.

Thus, the semiconductor industry will continue to be a field of rapid technological evolution, requiring companies to respond quickly to the introduction of new technologies and changing market needs.

Therefore, companies that focus on investment and R&D are particularly well positioned to take advantage of growth opportunities.

Who are Micron Technology's (MU) competitors in HBM memory?

Micron Technology's main competitors in the High Bandwidth Memory (HBM) memory market are

• Samsung Electronics:.Samsung is one of the world's leading companies in semiconductor memory manufacturing and has a strong competitive edge, especially in the development of HBM memory. Samsung has introduced HBM3E memory, named "Shinebolt," to the market, which offers faster speeds than the products of other companies.
• SK Hynix:.SK Hynix, along with Samsung, is a major South Korean semiconductor manufacturer and an important player in the manufacture of HBM memory. The company is expanding its HBM memory supply capacity, supplying HBM to customers such as AMD and NVIDIA. In addition, the company is working on the development of next-generation HBM3E memory.

These companies are focusing on innovation and expanding their production capacity to meet the increasing demand in the AI and high-performance computing (HPC) markets.

Micron Technology is also participating in this competition, seeking to expand its market share by offering high-performance, energy-efficient HBM3E memory.

What are Micron Technology's (MU) differentiators and advantages over the competition?

Micron Technology's differentiators and advantages over its competitors include the following points

Technology Leadership

Micron is a world leader in the development of DRAM technology. The company produces the fastest graphics DRAMs, and its technological expertise is reflected in its partnership with NVIDIA.

innovation

With a strong focus on driving innovation in the industry, the company offers products that meet the evolving needs of its customers.In particular, the development of low power consumption and high-density DRAMs is what makes Micron's products stand out in the market.

Product Portfolio Diversity

The company offers a wide range of products, including DRAM, NAND, NOR flash memory, and solid-state disk drives (SSDs), serving multiple markets including consumer electronics, automotive, and data centers, and maintaining economic stability to withstand industry fluctuations.

Strong manufacturing capabilities

Advanced manufacturing technology and the ability to efficiently produce high quality products.This contributes to the reduction of product costs and is a factor in maintaining competitiveness in the industry.

These factors have been the foundation of Micron's sustained growth and success in the areas of DRAM and NAND technology. The company's technological innovation and deep understanding of the marketplace provide continued advantages in the highly competitive semiconductor industry.

Micron Technology (MU) Financial Results

Micron Technology's (MU) financial year ends on August 31. Quarterly financial results are being released on the following schedule.

• First Quarter Results:Around early December
• Second Quarter Financial Results:Around early March
• Third Quarter Results:Around early June
• Fourth quarter and full year results:Around the end of September

First, we will review the following four indicators to perform a minimum performance analysis of Micron Technology (MU).

1. Sales: An indicator of a company's performance and growth.
2. Operating Cash Flow and Operating Cash Flow Margin: Indicators that look at how much cash a company generates from its services. The margin is considered excellent when the ratio is 15%.
3. Operating Profit: Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS: An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the earning power.

Each data is,Investing.com, ,TradingViewSee from

Micron Technology (MU) Stock Price

View a real-time stock price chart (TradingView) showing the current price of Micron Technology (MU).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Micron Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Micron Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Each transition is shown in the graph below.

Micron Quarterly: Operating Income Trends

Quarterly operating income.

Each transition is shown in the graph below.

Micron Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Micron's Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

Micron's Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.

Each transition is shown in the graph below.

Micron's Full Year: Operating Income Trends

Operating income for the full year.

Each transition is shown in the graph below.

Micron's Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What is the future life of Micron Technology (MU)? What are the future developments?

The future of Micron Technology (MU) is very promising due to its technological innovations, grant-funded investment incentives, and strategic positioning in the global marketplace.

Innovation and Product Development

Micron is focusing on the use of EUV (Extreme Ultraviolet Lithography) technology to manufacture next-generation memory products, especially DRAM.This technology is expected to improve memory performance and energy efficiency.This is a factor that further enhances the attractiveness of the company's products in the data center and high-performance computing markets.

International Subsidies and Investments

With a $610 million grant from the U.S. government and up to 46 billion yen in support from the Japanese government, Micron is expanding its manufacturing capabilities in Japan and abroad.This will enable the company to strengthen its global supply network and respond quickly to market demand amid concerns about supply-demand imbalances.

Adaptation to market and economic conditions

Micron has strong adaptability to market fluctuations,We are responding to increasing demand, especially in the AI, 5G, and automotive markets.These markets are expected to continue to grow, and Micron's products are expected to play an important role.

Given these factors, Micron Technology's future prospects are bright and it is expected to continue to grow through innovation and market expansion. The investment incentives provided by the grant will further strengthen these prospects and provide a foundation for new technology development and market competitiveness.

Micron Technology (MU) Q2 FY2024 Financial Results Summary

Key takeaways from Micron Technology's (MU) Q2 2024 financial report.

Key financial results for the second quarter of 2024

• Revenue: $0.1 billion582 million, up from $473 million in the previous quarter and $369 million in $ in the same period last year.
• Net income (GAAP)793 million or $0.71 per diluted share.
• Non-GAAP Net Income: (Millions of yen)476 million or $0.42 per diluted share.
• Operating Cash Flows: (Millions of yen)122 million, up from $140 million in the previous quarter and $343 million in the same period last year.

CEO's Comments

• Sanjay Mehrotra is the CEO of Micron,This quarter's results are a testament to the excellent execution of the product, pricing strategy, and operationsHe stated.
• Also,He is of the opinion that Micron is one of the companies that will benefit most from the perennial opportunities in the semiconductor industry from AI.

Future Outlook

• 2Revenue for the third quarter of 024 is expected to be approximately $660 million +/- $200 million.
• Operating expenses for the coming quarters are projected to be approximately $111 million ± $15 million on a GAAP basis and $990 million ± $15 million on a non-GAAP basis.
• Net income per share for the third quarter is expected to be $0.17 ± $0.07 on a GAAP basis and $0.45 ± $0.07 on a non-GAAP basis.

The content of this report is based on Micron Technology's sustained growth andThis indicates that the company is performing well due to increased demand, especially in the field of AI.

In addition, the company maintains a stable financial base and is expected to grow further into the future.

Micron Technology (MU) Q3 2024 Financial Results Summary

• Net sales: $6.811 billion, up 171 TP3T from $5.824 billion in the previous quarter.This is also a significant increase from the $3.752 billion in the same period last year.
• GAAP Net Income: $332 million, $0.30 per share.
• Non-GAAP Net Income: $702 million, or $0.62 per share.
• Operating Cash Flow: $2.48 billion, up from $1.22 billion in the previous quarter.Also a significant increase from $24 million in the same period last year.The company is doing so.

Performance by Segment

• data center: AI demand led to a 50% increase in data center revenues and record revenues. Sales of high bandwidth memory (HBM) and data center SSDs were strong.
• DRAM: Total sales of DRAM increased significantly and contributed significantly to overall revenue growth.
• NAND: Sales of NAND memory also remained strong, with particularly strong demand for high-performance products.

Expenses and cash flow

• research and development expenses: $850 million, up slightly from $832 million in the previous quarter.
• Selling, general and administrative expenses: $291 million, up from $280 million in the previous quarter.
• capital outlay: $2.06 billion, with adjusted free cash flow of $425 million.

Management's Comments

Sanjay Mellotra, Micron's CEO, said, "Increased demand for AI and strong execution led to third quarter revenue growth that exceeded our forecasted range. We are gaining market share in high-margin high-bandwidth memory (HBM) products, and data center SSD revenue reached a record high," he said. Also,Significant revenue growth expected in FY2025 as AI-driven opportunities expandThe company states that it is a "company with a strong commitment to the environment.

Future Outlook

• Forecast for Q4 2024:
  • Net sales: $7.6 billion (±$0.2 billion).
  • GAAP operating margin: 33.51 TP3T (±1.01 TP3T).
  • Non-GAAP operating margin: 34.51 TP3T (±1.01 TP3T).
  • GAAP Earnings Per Share (EPS): $0.61 (±$0.08).
  • Non-GAAP Earnings Per Share (EPS): $1.08 (+/- $0.08).

Although the financial figures were excellent results, the outlook guidance was seen to be only in the expected range, and the stock price was sold off sharply after the results and was dull.

Micron Technology (MU) Q4 and Full Year 2024 Financial Summary

FY2024 4th Quarter Highlights

• Net sales: $7.75 billion, a significant increase from $4.01 billion in the same period last year.
• GAAP Net Income: $887 million.
• Adjusted net income: $1.342 billion.

FY2024 Full-Year Highlights

• Net sales: $25.111 billion, a significant increase from the previous year's $15.54 billion.
• GAAP Net Income: $778 million, a turnaround from a loss of $5,833 million the previous year.
• Adjusted (Non-GAAP) Net Income: $1.472 billion.
• Operating Cash Flow: $8.51 billion, a significant increase from the previous year's $1.56 billion.

growth factor

• Surge in AI demand: Demand for DRAM products and high-bandwidth memory for data centers related to AI was a factor in earnings growth.
• Record sales in the NAND market: Sales of SSDs for data centers exceeded $1 billion in the quarter for the first time, supporting the growth of the NAND business.

Future Outlook

• Sales forecast for the first quarter of FY2025: $8.7 billion (±$0.2 billion).
• Forecast for full year 2025: Significant growth in sales and revenues is projected, especially in the AI sector, where demand is expected to increase.

Micron achieved significant earnings improvement in FY2024 due to increased demand for its products for AI and data centers; AI-related innovations are expected to continue to drive earnings, with strong growth expected in FY2025.

Which brokerage firms can I buy Micron Technology (MU) stock?

We have listed the major brokerage firms that offer Micron Technology (MU) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Micron Technology's business, its unique characteristics, competitive advantages, and earnings growth.

Micron's performance data indicates that its performance bottomed out in 2023 and that significant growth is expected in the future.

NVIDIA related issuesAs one of the many stocks that are closely related and have particularly strong growth potential.

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