Micron Technology has posted revenue of $4.73 billion for the first quarter of fiscal 2024, concluded on November 30, 2023, surpassing the prior quarter’s $4.01 billion and the $4.09 billion from the same period last year.
Micron Technology has reported net loss of $1.23 billion, equivalent to $1.12 per diluted share.
The company’s capital expenditures were $1.73 billion for the first quarter of 2024. Micron did not reveal additional details on Capex.
Micron Technology made a bullish forecast for quarterly revenue, surpassing market expectations on Wednesday. The optimistic outlook indicates a promising recovery in memory chip demand anticipated in 2024 after facing one of its most substantial downturns in recent years.
The US-based semiconductor giant revealed that the increasing demand for flash storage and dynamic random access memory (DRAM) is projected to continue its upward trajectory in the coming year. Simultaneously, the supply is anticipated to reach historically standard levels, offering a more balanced market landscape, as highlighted by Micron.
Sanjay Mehrotra, Micron’s CEO, expressed confidence during a conference call, foreseeing an improvement in memory prices next year, with further rises anticipated in 2025.
Micron’s second-quarter revenue forecast stands at $5.3 billion. The company anticipates a return to normalcy in chip supply for PCs, mobile devices, and other chipsets by the first half of the upcoming year.
The surge in demand for Micron’s memory chips, essential for training large language models underpinning AI technology, has been fueled by the integration of generative artificial intelligence into diverse products and services.
Sanjay Mehrotra noted the demand for AI servers within data center infrastructures, necessitating a shift in budget allocations from traditional servers to content-rich AI servers.
Furthermore, Micron highlighted its role in supplying high-bandwidth memory chips, particularly for Nvidia’s upcoming Grace Hopper GH200 and H200 platforms, positioning itself in the final stages of qualification for HBM3E chips.
The company anticipates a substantial revenue boost from high-bandwidth memory in fiscal 2024, with a continuation of this growth in 2025.
Sumit Sadana, Micron’s Chief Business Officer, emphasized the technical intricacy and profitability of high-bandwidth memory, labeling it as the most complex product in the DRAM industry.
This forecast from Micron aligns with positive earnings reported by major chipmakers such as Intel and Advanced Micro Devices (AMD), indicating a strengthening recovery in PC demand post the pandemic-related supply glut, Reuters news report said.