DELL - Micron Technology Is Positioned For AI Factory Growth
2024-06-17 05:50:09 ET
Summary
- Micron Technology is set to report earnings on June 26, 2024, with 26 positive and 1 negative EPS revision by analysts.
- MU is ramping up production of HBM3E and expects to see an increase in sales in e2h24 with strong tailwinds in eFY25.
- The Company should realize strong tailwinds driven by AI servers and the next refresh cycle for general compute servers with the release of HBM4E.
Micron Technology ( MU ) will be reporting earnings on June 26, 2024, with lofty expectations for both top-line growth and some margin expansion as the firm enters the next cyclical upswing as customers have been destocking inventories for the last few quarters. Management denoted that customers are still rightsizing inventories as a result of the supply shortage followed by the surplus following the C19 supply chain lockup. As firms moved away from a bloated inventory level and back to a more normalized level, management anticipates buying to experience a strong upswing going into e2h24 followed by strong tailwinds throughout eFY25 driven by AI factory buildouts. Analyst EPS estimates have been revised up 26x and 1x down in the last 90 days, suggesting that analysts are relatively optimistic about the growth trajectory of MU and that earnings may have bottomed. I maintain my STRONG BUY recommendation with an increased price target of $35/share at 13.24x eFY25 EV/aEBITDA....
Micron Technology Is Positioned For AI Factory Growth