Micron's latest quarterly financial report of major storage manufacturer Micron has given new hope to the chip market at the end of the year.
On December 21, Micron, a major memory chip manufacturer, announced last quarter's financial report and this quarter's financial forecast were better than analysts' expectations, CEO Merotta believes that next year's product ** will rebound, the rally will continue to 2025, and Micron will return to the road of operating a new high in 2025.
Micron's financial report is bright
According to Micron's financial report data, in the latest fiscal quarter, Micron's revenue reached 47$300 million, stronger than the previous quarter's 40$100 million and $40 million in the same period last year$900 million.
In its outlook for the next fiscal quarter, Micron expects revenue to be in the range of $5.1 billion to $5.5 billion, stronger than analysts' expectations of 49$900 million. The company also expects the loss per share to narrow to 0$21 to $0$35, also higher than Wall Street expected at $0$62 optimistic.
In terms of market share, Micron is the world's third-largest memory chip giant, second only to South Korea's Samsung and SK hynix. From the perspective of product line, Micron is the world's second largest memory manufacturer and the fifth largest flash memory manufacturer, and its performance is representative.
Memory chips rise to 2025?
Micron CEO Sanjay Mehrotra said that strong execution and pricing strategy made the Q1 earnings results better than expected. At the same time, he also believes that memory chips will rebound next year and further in 2025. In his statement, he reiterated that 2024 will be the year of the memory industry's prosperity, and Micron will return to the road of operating a new high in 2025. Merota also expects Micron's fundamentals to improve in 2024 and is ready to take advantage of the huge opportunities presented by AI to boost the entire market.
Micron has made all** high-bandwidth memory (HBM) in fiscal 2024, which is primarily the fast chip used to help computers create AI software, Merota noted.
HBM is one of Micron's most profitable products right now, in part because of its technical complexity. Micron's chief marketing officer once said that HBM is the most complex product the DRAM industry has ever designed to design.
Micron is also trying to recover from the smartphone and PC markets, which have been experiencing cuts over the past year. Due to the high inventory level of the customer's previous inventory, the previous ** decline was larger. However, the number of PCs is expected to grow slowly in 2024 as a low- to mid-single-digit percentage after the past two years**. Although there are also signs of recovery in smartphone demand, growth will be moderate in 2024.
Looking at the entire storage industry, the storage market is gradually picking up, driven by upstream manufacturers' production cuts, capital expenditures and continuous demand recovery.
According to TrendForce, the average price of Mobile DRAM and NandFlash (EMMC UFS) will increase by 18-23% in the first quarter of 2024. Observing that the production plan of smartphone OEMs in the first quarter of 2024 is still stable, due to the clear increase in memory**, buyers are actively expanding purchase demand to build a safe and relatively low inventory level.
According to Gartner data, the global semiconductor market size is expected to grow by 16% year-on-year in 20248% to $624 billion, with the largest growth driver coming from memory chips (expected to grow by 66.** in 2024.).3%）。According to Yole Intelligence's latest memory chip market monitoring data report, the memory chip market is expected to begin to recover in Q4 this year.