NVDA - Micron Q3 Preview: AI Is Moving To Smartphones

2024-06-21 17:58:50 ET

Summary

• Micron Technology, Inc. is benefiting from the AI enterprise wave, with revenue forecasts for 3Q 2024 higher than originally anticipated.
• Micron's HBM3E products cater to high-bandwidth memory market demand, allowing for higher profit margins.
• Micron's partnership with Nvidia and focus on AI-driven products positions them for strong growth in the memory market.
• The AI smartphone market is set to grow at 83% per year, offering a strong growth opportunity.

Investment Thesis

We already know memory chip manufacturer Micron Technology, Inc. ( MU ) is benefiting from the AI enterprise wave. With more enterprises increasingly deploying AI in their operations and services, the company is taking advantage of the growing need for high-performance memory technology. Their latest financial forecasts reflect a significant uptick in demand, with revenue projections for the financial 3Q 2024 marked between $6.4 billion and $6.8 billion, higher than the anticipated $5.99 billion??....

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