Micron Technology, Inc. is all set to unveil its fourth-quarter fiscal 2024 results after the market closes on Sept. 25.
Micron’s financial performance in this quarter is expected to be robust, fueled by the improving demand-supply dynamics in the memory chip market and the surging investments in artificial intelligence (AI). Leveraging its advanced product range, Micron is poised to benefit from the increasing need for high-performance memory and storage solutions.
Click here to explore the potential outlook for MU in the upcoming quarterly results.
The Role of Rising AI Investment in Micron’s Q4 Results
The accelerated growth of the global AI sector has led to a significant upswing in investments, spurring demand for cutting-edge technologies and infrastructure. AI applications, famous for their data-intensive operations, demand massive computational power and lightning-speed data processing, where memory and storage solutions, like those provided by Micron, play a pivotal role.
Micron’s core offerings, including DRAM and NAND flash memory, are crucial in delivering the required speed and capacity for these advanced AI tasks. The surge in demand for these components reflects positively on the company, with the Zacks Consensus Estimate forecasting a remarkable 91% year-over-year growth in fourth-quarter DRAM revenues to $5.26 billion. Similarly, NAND revenues are projected to climb by 91.5% to $2.31 billion. This substantial growth underscores Micron’s significant contribution to the AI evolution.
Strategic Partnerships Driving Micron’s Growth
An essential driver behind Micron’s success is its strategic alliances with industry leaders like NVIDIA Corporation and Advanced Micro Devices, Inc., prominent entities in AI innovation. These partnerships have amplified Micron’s market presence and growth trajectory. NVIDIA, a dominant name in AI and GPU development, relies on Micron’s high-performance memory solutions to elevate the efficiency of its AI chips.
In early 2024, Micron commenced mass production of its HBM3E high-bandwidth memory for NVIDIA’s latest AI chipset, a move anticipated to revolutionize NVIDIA’s upcoming H200 GPUs, replacing the existing H100 chips.
Teaming up with AMD has also proven advantageous for Micron. Advanced Micro Devices, in its bid to enhance its foothold in the AI and data center sectors, necessitates robust memory solutions to unleash the full capabilities of its high-performance processors and GPUs. Micron’s cutting-edge memory technologies have been instrumental in supporting AMD’s AI-driven workloads, resulting in increased orders and revenue. Notably, in mid-2024, Micron disclosed that AMD would be testing samples of its GDDR7 graphic memory in forthcoming devices, further solidifying this collaboration.
In conclusion, the surge in AI investments and Micron’s strategic partnerships with tech behemoths have positioned the company for sustained success, likely boosting its overall performance in the impending quarter.
Micron’s Zacks Rank & Stock Recommendations
Currently holding a Zacks Rank #3 (Hold), Micron continues to be a player to watch in the technology domain. Standing out in this realm is AudioEye, which boasts a Zacks Rank #1 (Strong Buy) and is anticipated to perform impressively. With its 2024 earnings estimate revised upwards by 10 cents to 47 cents per share in the last 60 days, reflecting a substantial 327.3% year-over-year increase, AudioEye displays a promising long-term earnings growth rate of 25%.
Stay in the loop with upcoming earnings releases using the Zacks Earnings Calendar.
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