The following is a summary of the Micron Technology, Inc. (MU) Post Earnings Q1 2025 Earnings Call Transcript:
Financial Performance:
Micron Technology reported a 100 basis point decline in gross margin, primarily due to NAND-related issues such as mixed pricing and lower shipments.
DRAM pricing remains stable with positive mix impacts from high-value memory (HVM) and server DRAM, although offset by weak commodity pricing.
Expectations are set for sequential reacceleration in data center SSD in fiscal Q3, driven by robust AI demand.
Business Progress:
Micron has made significant advancements in its enterprise and data center SSD market share, growing from 3-5% to approximately 14%.
The company introduced the world's first PCIe Gen5 60 terabyte SSD and the 9550, the fastest SSD, contributing to several quarters of record-setting revenue and market share performance.
Opportunities:
The data center segment, especially data center SSDs, is anticipated to see continued growth supported by strong customer capital expenditures into 2025.
Growth opportunities are also seen in high-capacity DRAM DIMMs and leading-edge memory products like LPDDR5x.
Risks:
The near-term moderation in data center SSD, seasonal fluctuations, and continued high inventory levels in customer channels pose risks for fiscal Q2.
NAND market conditions are expected to remain challenging into the fiscal third quarter, impacting gross margins.
More details: Micron Technology IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
