Semiconductor Stocks
Micron Q1: The Memory Rebound Has Arrived Fueled by HBM3e
Micron announced its fiscal Q1 earnings on December 20 after pre-announcing results on November 28. Micron beat on both the top and bottom lines, showed solid improvement in operating cash flow as margins continue to recover, and guided its fiscal Q2 revenue nearly 5% higher than consensus. Shares rose 8.6% following the report, Micron’s largest one-day gain since March 2022, as it offered further evidence that the memory market recovery may be underway with its first YoY revenue increase in six quarters. We described the importance of HBM in our analysis Micron: AI Offers a Multifaceted Secular Growth Tailwind, where we highlighted a week prior to earnings that AI offers Micron a secular growth tailwind. Demand for HBM3e chips is expected to surge, a critical component to support faster iterations of AI GPUs from Nvidia and AMD. In the earnings call, CEO Sanjay Mehrotra talked up the AI tailwinds, saying “AI has emerged as a significant secular driver that will further bolster the industry towards record revenue TAM in 2025 and drive growth for years to come,” with Micron “well positioned to capitalize on the immense opportunities artificial intelligence is fueling across end markets.”
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