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Micron is likely to have recorded yet another strong financial performance this time around, driven by an improving demand-supply environment for memory chips and rising investments in artificial intelligence (AI). Micron, with its advanced product portfolio, is likely to have capitalized on the demand for high-performance memory and storage solutions.
Click here to know how MU’s overall fiscal fourth-quarter results are likely to be.
Micron’s Q4 Results to be Aided by Rising AI Investment
The rapid expansion of the global AI market resulted in a surge in investment, driving demand for advanced technologies and infrastructure. AI applications, known for their data-intensive nature, require immense computational power and lightning-fast data processing. As a result, memory and storage solutions — like those produced by Micron — have become critical components in powering AI systems.
Micron’s core products, such as DRAM and NAND flash memory, are pivotal in enabling the speed and capacity needed for these cutting-edge AI tasks. The demand for these components has translated into substantial growth for the company, with the Zacks Consensus Estimate projecting fourth-quarter DRAM revenues at $5.26 billion — a staggering 91% increase year over year. Similarly, NAND revenues are expected to surge 91.5% to $2.31 billion. This explosive growth highlights the crucial role Micron is playing in the AI revolution.
A key factor likely to have driven Micron's growth is its strong partnerships with industry leaders like NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , two companies at the forefront of AI innovation. As these giants expand their AI capabilities, they rely heavily on Micron’s memory solutions to power their latest advancements. This has resulted in a surge of orders for Micron, fueling its top-line growth.
NVIDIA, a dominant player in AI and GPU development, depends on Micron's high-performance memory solutions to enhance the capabilities of its AI chips. In February 2024, Micron began mass production of its HBM3E high-bandwidth memory for NVIDIA’s newest AI chip. This memory technology is expected to be a game-changer for NVIDIA’s forthcoming H200 GPUs, which will eventually replace the popular H100 chips.
Micron’s partnership with AMD has also proved to be highly beneficial. Advanced Micro Devices in a bid to solidify its position in the AI and data center markets, requires robust memory solutions to unlock the full potential of its high-performance processors and GPUs. Micron’s cutting-edge memory technologies have been essential in supporting AMD’s AI workloads, leading to more orders and higher revenues. Notably, in June 2024, Micron announced that AMD would be testing samples of its GDDR7 graphic memory in upcoming devices, further strengthening this collaboration.
Overall, rising AI investments and Micron’s strategic partnerships with tech giants have positioned the company for continued success. These factors are likely to have aided MU’s overall performance in the to-be-reported quarter.
The Zacks Consensus Estimate for AudioEye’s 2024 earnings has been revised upward by 10 cents to 47 cents per share in the past 60 days, implying an increase of 327.3% on a year-over-year basis. The company has an estimated long-term earnings growth rate of 25%.
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Increasing Investments in AI to Boost Micron's Q4 Earnings
Micron Technology, Inc. (MU - Free Report) is scheduled to report fourth-quarter fiscal 2024 results after market close on Sept. 25.
Micron is likely to have recorded yet another strong financial performance this time around, driven by an improving demand-supply environment for memory chips and rising investments in artificial intelligence (AI). Micron, with its advanced product portfolio, is likely to have capitalized on the demand for high-performance memory and storage solutions.
Click here to know how MU’s overall fiscal fourth-quarter results are likely to be.
Micron’s Q4 Results to be Aided by Rising AI Investment
The rapid expansion of the global AI market resulted in a surge in investment, driving demand for advanced technologies and infrastructure. AI applications, known for their data-intensive nature, require immense computational power and lightning-fast data processing. As a result, memory and storage solutions — like those produced by Micron — have become critical components in powering AI systems.
Micron’s core products, such as DRAM and NAND flash memory, are pivotal in enabling the speed and capacity needed for these cutting-edge AI tasks. The demand for these components has translated into substantial growth for the company, with the Zacks Consensus Estimate projecting fourth-quarter DRAM revenues at $5.26 billion — a staggering 91% increase year over year. Similarly, NAND revenues are expected to surge 91.5% to $2.31 billion. This explosive growth highlights the crucial role Micron is playing in the AI revolution.
Micron Technology, Inc. Price and EPS Surprise
Micron Technology, Inc. price-eps-surprise | Micron Technology, Inc. Quote
A key factor likely to have driven Micron's growth is its strong partnerships with industry leaders like NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , two companies at the forefront of AI innovation. As these giants expand their AI capabilities, they rely heavily on Micron’s memory solutions to power their latest advancements. This has resulted in a surge of orders for Micron, fueling its top-line growth.
NVIDIA, a dominant player in AI and GPU development, depends on Micron's high-performance memory solutions to enhance the capabilities of its AI chips. In February 2024, Micron began mass production of its HBM3E high-bandwidth memory for NVIDIA’s newest AI chip. This memory technology is expected to be a game-changer for NVIDIA’s forthcoming H200 GPUs, which will eventually replace the popular H100 chips.
Micron’s partnership with AMD has also proved to be highly beneficial. Advanced Micro Devices in a bid to solidify its position in the AI and data center markets, requires robust memory solutions to unlock the full potential of its high-performance processors and GPUs. Micron’s cutting-edge memory technologies have been essential in supporting AMD’s AI workloads, leading to more orders and higher revenues. Notably, in June 2024, Micron announced that AMD would be testing samples of its GDDR7 graphic memory in upcoming devices, further strengthening this collaboration.
Overall, rising AI investments and Micron’s strategic partnerships with tech giants have positioned the company for continued success. These factors are likely to have aided MU’s overall performance in the to-be-reported quarter.
Micron’s Zacks Rank & Stock to Consider
Currently, Micron carries a Zacks Rank #3 (Hold).
A top-ranked stock in the broader technology sector is AudioEye (AEYE - Free Report) which sports 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 AudioEye’s 2024 earnings has been revised upward by 10 cents to 47 cents per share in the past 60 days, implying an increase of 327.3% on a year-over-year basis. The company has an estimated long-term earnings growth rate of 25%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.