Highlights of Micron Technology's latest financial report

Financial performance:

• Third-quarter revenue: $6.81 billion, exceeding market expectations of $6.634 billion.

• Adjusted earnings per share (EPS): 62 cents, exceeding analysts' expectations of 49 cents.

• Operating cash flow: $2.48 billion, up from $1.22 billion in the previous quarter and $24 million in the same period last year.

• Adjusted free cash flow: $425 million.

• Cash and equivalents: At the end of the quarter, it had $9.22 billion in cash, market securities, and restricted cash.

Business highlights:

• High Bandwidth Memory (HBM): Achieved an increase in market share, driving the performance of high-margin products.

• Data center SSD: Revenue reached a record high, demonstrating strength in the field of artificial intelligence in the DRAM and NAND product portfolio.

• DRAM revenue: Up 13% from the previous quarter to $4.7 billion, in line with market expectations.

• NAND revenue: Seasonally increased 32% to $2.1 billion, higher than market expectations of $1.9 billion.

Management comments:

• President and CEO Sanjay Mehrotra (Sanjay Mehrotra) said: “Strong demand for artificial intelligence and superior execution drove Micron to achieve 17% quarterly revenue growth in the third quarter of the fiscal year, exceeding our revenue range. We have achieved share growth in high-margin products such as high-bandwidth memory (HBM), and our data center SSD revenue reached a record high, fully demonstrating the strength of our DRAM and NAND product portfolio in the field of artificial intelligence. We are excited about the growing opportunities based on artificial intelligence in the future and are well positioned to achieve a substantial revenue record in fiscal year 2025.”

• Chief Commercial Officer Sumit Sadana (Sumit Sadana) emphasized the company's growth potential in the field of artificial intelligence, saying the company is likely to invest more in this field than any other semiconductor company.

Future prospects:

• Fourth quarter revenue forecast: $7.6 billion, plus or minus $2 million, in line with market expectations.

• Fourth-quarter adjusted earnings per share forecast: between $1 and $1.16, with market expectations of $1.05.

• Quarterly dividend: A dividend of $0.115 per share will be paid on July 23 to shareholders holding shares as of July 8.

• 2024 and 2025 HBM chips: “sold out”, these chips are widely used in AI processors designed by Nvidia.

Industry impact: Micron's performance is generally regarded as a weather vane for the chip industry's profits, as it reflects the demand situation in various chip and terminal markets. Although the market reacted cautiously to the company's investment in artificial intelligence, management is confident of future growth, particularly strong performance in high-bandwidth memory and data center SSDs.