Semiconductor Stocks
Micron Q3 FY2024 Earnings Preview: Strong rebound led by AI
Micron will release its results on June 26th. The company reported a 42% acceleration to 57.7% revenue growth in the last quarter. Management expects revenue to accelerate 18.2% to 75.9% growth in Q3 FY2024. The strength of the bottom line was the outlier in the report. The company achieved its goal of a positive adjusted operating margin a quarter ahead of expectation, primarily helped by the recovery in the DRAM and NAND pricing. Management is confident this trend will continue and expects positive free cash flow in the second half of the year and record revenue in FY2025. The company is riding the Artificial Intelligence wave. Its HBM (High-Bandwidth Memory) is sold out for the calendar year 2024 and most of 2025 supply is being allocated. As a result of strong AI demand, the prices of HBM are expected to increase, which should help to drive higher revenues and profitability.
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