NVDA - Micron Fiscal Q2 Quick Takes: Beware Of The Capacity Chokehold
2024-03-21 10:45:29 ET
Summary
- Micron Technology, Inc. stock surged after reporting strong fiscal Q2 earnings, driven by outsized AI-driven HBM demand and progress in consumer end-market recovery.
- The company has already sold out of its HBM capacity for FY 2024, with much of FY 2025's volumes also already accounted for.
- While Micron remains well positioned to benefit from incremental memory demand, there are roadblocks to materialization in the near term that could preclude the stock from further multiple expansions.
Micron Technology, Inc. ( MU ) surged after reporting strong fiscal Q2 2024 results earlier this week. The company faces an outsized demand recovery, underpinned by continued progress in capitalizing on emerging secular AI tailwinds. Micron is currently supply constrained, with limited idle capacity to drive volume growth. This leaves strong pricing power for the company, as it remains one of few suppliers of next-generation HBM3e memory critical to AI developments....
Micron Fiscal Q2 Quick Takes: Beware Of The Capacity Chokehold