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Micron (MU) Offers Industry-First UFS 4.0 Mobile Solution

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Micron Technology (MU - Free Report) recently revealed that it is currently delivering qualification samples of its Universal Flash Storage (“UFS”) 4.0 mobile solution to selective smartphone manufacturers and chipset vendors globally. The mobile flash storage offers the industry’s fastest performance for flagship smartphones with fast bootup, app launches and video downloads.

Developed on Micron’s 232-layer triple-level cell NAND, the UFS solution is the world’s first UFS 4.0 solution to use six-plane NAND architecture. The solution offers up to 4300 megabytes per second (MBps) sequential read and 4000 MBps sequential write speed which enables faster social media application launches among its user base. It is optimized for artificial intelligence-powered and fifth generation data-intensive flagship smartphones and designed for mobile, automotive and computing systems that require low power consumption, high performance and consistent reliability. MU is shipping samples of the solution in capacities of 256 gigabytes (GB), 512GB and 1 tera byte at present.

Micron’s UFS solution is 25% more power-efficient and provides 10% write latency improvement compared with its competitive solutions available in the market. This helps its user base to save time and enjoy data-intensive apps longer than usual with superior performance, avoiding frequent charging hassles. Further, the users can download two hours of 4K streaming content in less than 15 seconds which is twice as fast as the prior generation. The company is planning for high-volume production of the storage solution in the second half of 2023.

Micron’s 232-layer NAND technology offers 100% higher write bandwidth and more than 75% higher read bandwidth per die than previous generation solid state drives. Its six-plane architecture delivers best-in-class data transfers in many configurations which ensures fewer collisions between write and read commands and drives system-level quality-of-service improvements. The NAND technology provides high-performance storage necessary to support advanced solutions and real-time services required in data center and automotive applications, as well as responsive and immersive experiences on mobile devices, consumer electronics and personal computers.

Last week, Micron promised to invest 4.3 billion yuan ($603 million) over the next few years in its chip packaging plant in China. Per the plan, the semiconductor company will be adding assembly lines at its existing chip packaging facility in the Chinese city of Xian. The investment will also include acquisition of packaging equipment from a Xian-based subsidiary of Taiwan's Powertech Technology.

Micron stated that the investment plan in China would create an additional 500 jobs, which will bring the company’s total workforce to more than 4,500 in the country.

The company reported weaker-than-expected financial results in the second quarter of fiscal 2023. Micron posted a non-GAAP loss of $1.91 per share, which was significantly higher than the Zacks Consensus Estimate of a loss of 67 cents. The bottom line compared unfavorably with the prior-year quarter’s earnings of $2.14 per share.

The quarterly revenues of MU plunged 53% year over year to $3.69 billion, which missed the consensus mark of $3.76 billion. The rapidly weakening consumer demand and substantial customer inventory adjustments across end markets amid macroeconomic uncertainty were the main reasons behind the dismal quarterly performance.

Zacks Rank & Stocks to Consider

Currently, Micron carries a Zacks Rank #3 (Hold). Shares of MU have gained 16.7% over the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Meta Platforms (META - Free Report) , ServiceNow (NOW - Free Report) and Dropbox (DBX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta Platforms' second-quarter 2023 earnings has been revised downward by 5 cents to $2.82 per share over the past 30 days. For 2023, earnings estimates have moved north by a penny to $11.94 in the past seven days.

META’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing twice, the average surprise being 15.5%. Shares of the company have soared 80.7% in the past year.

The Zacks Consensus Estimate for ServiceNow’s second-quarter 2023 earnings has been revised northward by 6.2% to $2.05 per share over the past 60 days. For 2023, earnings estimates have moved up by 43 cents to $9.59 in the past 60 days.

NOW's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have inched up 19.2% in the past year.

The Zacks Consensus Estimate for Dropbox’s second-quarter 2023 earnings has been revised southward from 41 cents to 45 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 10.1% to $1.85 in the past 60 days.

DBX's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 10.4%. Shares of the company have jumped 21.1% in the past year.


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