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Does Micron Technology's (MU) Strong Portfolio Make It a Buy?
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Micron Technology (MU - Free Report) shares have risen 48.4% year to date compared with the Zacks Computer & Technology sector's rise of 16.2%. The uptick can be attributed to Micron’s back-to-back quarters of impressive financial performance and sustained focus on launching successful and innovative products.
So far in 2024, MU has achieved multiple milestones on the back of innovations. It launched the world’s first quad-port SSD, Micron 4150AT SSD, which can connect with four systems on chips. The company launched the world’s most compact Universal Flash Storage (UFS) 4.0 to improve the capability of smartphones worldwide.
MU also achieved a qualification sample milestone for its CZ120 memory expansion modules using Compute Express Link, becoming the first in the industry to do so.
Recently, Micron crossed another milestone by launching the next-generation GDDR7 graphics memory that features the highest bit density in the industry. The newly launched graphics memory features 1.5 TB/s of system bandwidth, quad-channel and increased throughput compared to its predecessors.
Companies including Advanced Micro Devices (AMD - Free Report) and Cadence Design Systems (CDNS - Free Report) are going to test the samples of Micron’s GDDR7 in their devices as it promises lower processing time, improved power efficiency, enhanced thermals and longer battery life.
AMD will leverage GDDR7 graphics memory to build more responsive and realistic games. Cadence will continue to stick to its long history of building IPs with MU. This time, CDNS will use GDDR7 to test and validate GDDR7 PHY IP.
Micron has been collaborating with multiple industry leaders in the realm of chip manufacturing. In February 2024, Micron began mass-producing high-bandwidth memory, namely HBM3E, for NVIDIA's (NVDA - Free Report) latest AI chip.
NVIDIA is expected to leverage the HBM3E to develop its H200 graphic processing units that will replace NVDA’s existing H100 chip.
Moreover, in early 2024, Micron announced that its automotive-grade memory and storage qualified for Qualcomm’s Snapdragon Digital Chassis in intelligent automotive services.
The portfolio of solutions to be used in Qualcomm’s Snapdragon Cockpit Platform, Ride Platform and QCOM Ride Flex SoC includes Micron LPDDR5X, UFS 3.1 storage, Xccela flash and Quad SPI-NOR flash memory.
Micron’s products and collaborations have been contributing to its Compute and Networking, Mobile and Embedded Business Units, thus aiding its top line and overall performance.
Strong Growth Prospects
Micron Technology has been on a recovery path from the financial difficulties experienced in late 2022 and early 2023. This improvement is evident from the company's financial results in the last few quarters.
The company’s non-GAAP earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 69.6%. In its last-reported second-quarter 2024 earnings, Micron beat the consensus mark on both counts and witnessed significant year-over-year improvement.
The Zacks Consensus Estimate for fiscal 2024 is pegged at $24.6 billion, and for 2025, it is $37 billion, indicating year-over-year growth of more than 50% in each of these years.
The consensus estimate for earnings is pegged at 85 cents per share for fiscal 2024, indicating year-over-year growth of 119%. The consensus estimates for fiscal 2025 is pegged at $7.49, indicating a sixfold increase.
Conclusion
We believe Micron presents a good investment opportunity due to its diversified portfolio, its presence across multiple industries, a strong client base and consistent financial success.
Additionally, MU has a Zacks Rank #2 (Buy) and a Growth Score of B at present. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a Growth Score of A or B offer solid investment opportunities.
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Does Micron Technology's (MU) Strong Portfolio Make It a Buy?
Micron Technology (MU - Free Report) shares have risen 48.4% year to date compared with the Zacks Computer & Technology sector's rise of 16.2%. The uptick can be attributed to Micron’s back-to-back quarters of impressive financial performance and sustained focus on launching successful and innovative products.
So far in 2024, MU has achieved multiple milestones on the back of innovations. It launched the world’s first quad-port SSD, Micron 4150AT SSD, which can connect with four systems on chips. The company launched the world’s most compact Universal Flash Storage (UFS) 4.0 to improve the capability of smartphones worldwide.
MU also achieved a qualification sample milestone for its CZ120 memory expansion modules using Compute Express Link, becoming the first in the industry to do so.
Recently, Micron crossed another milestone by launching the next-generation GDDR7 graphics memory that features the highest bit density in the industry. The newly launched graphics memory features 1.5 TB/s of system bandwidth, quad-channel and increased throughput compared to its predecessors.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
Micron Soars on Strong Products and Big Clients
Companies including Advanced Micro Devices (AMD - Free Report) and Cadence Design Systems (CDNS - Free Report) are going to test the samples of Micron’s GDDR7 in their devices as it promises lower processing time, improved power efficiency, enhanced thermals and longer battery life.
AMD will leverage GDDR7 graphics memory to build more responsive and realistic games. Cadence will continue to stick to its long history of building IPs with MU. This time, CDNS will use GDDR7 to test and validate GDDR7 PHY IP.
Micron has been collaborating with multiple industry leaders in the realm of chip manufacturing. In February 2024, Micron began mass-producing high-bandwidth memory, namely HBM3E, for NVIDIA's (NVDA - Free Report) latest AI chip.
NVIDIA is expected to leverage the HBM3E to develop its H200 graphic processing units that will replace NVDA’s existing H100 chip.
Moreover, in early 2024, Micron announced that its automotive-grade memory and storage qualified for Qualcomm’s Snapdragon Digital Chassis in intelligent automotive services.
The portfolio of solutions to be used in Qualcomm’s Snapdragon Cockpit Platform, Ride Platform and QCOM Ride Flex SoC includes Micron LPDDR5X, UFS 3.1 storage, Xccela flash and Quad SPI-NOR flash memory.
Micron’s products and collaborations have been contributing to its Compute and Networking, Mobile and Embedded Business Units, thus aiding its top line and overall performance.
Strong Growth Prospects
Micron Technology has been on a recovery path from the financial difficulties experienced in late 2022 and early 2023. This improvement is evident from the company's financial results in the last few quarters.
The company’s non-GAAP earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 69.6%. In its last-reported second-quarter 2024 earnings, Micron beat the consensus mark on both counts and witnessed significant year-over-year improvement.
The Zacks Consensus Estimate for fiscal 2024 is pegged at $24.6 billion, and for 2025, it is $37 billion, indicating year-over-year growth of more than 50% in each of these years.
The consensus estimate for earnings is pegged at 85 cents per share for fiscal 2024, indicating year-over-year growth of 119%. The consensus estimates for fiscal 2025 is pegged at $7.49, indicating a sixfold increase.
Conclusion
We believe Micron presents a good investment opportunity due to its diversified portfolio, its presence across multiple industries, a strong client base and consistent financial success.
Additionally, MU has a Zacks Rank #2 (Buy) and a Growth Score of B at present. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a Growth Score of A or B offer solid investment opportunities.
You can see the complete list of today's Zacks #1 Rank stocks here.