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Micron Technology's (NASDAQ: MU) stock surged 13.4% in after-hours trading on 20 March 2024, following a 60% gain in the past year. The surge comes after the company released results for the second quarter of FY24, which ended 29 February 2024 .
Micron is a leading innovator in memory and storage technology, driving advancements in how information is used. Under the Micron and Crucial brands, they offer a wide range of high-performing memory and storage products (DRAM, NAND, and NOR). Their focus on cutting-edge technology supports the data economy, specifically in AI and 5G applications. This translates to benefits across various tech areas, from data centers to mobile devices.
Micron's Q2 2024 financial performance
- Revenue: Up significantly compared to both the previous quarter ($5.82 billion vs $4.73 billion) and the same period last year ($5.82 billion vs $3.69 billion).
- Profitability: GAAP net income of $793 million ($0.71 per diluted share) and Non-GAAP net income of $476 million ($0.42 per diluted share).
- Cash Flow: Operating cash flow remained positive at $1.22 billion, though lower than the prior quarter.
- Investments: The company invested heavily in capital expenditures ($1.25 billion) for future growth.
- Financial Strength: Micron ended the quarter with a healthy cash position of $9.72 billion and declared a dividend of $0.115 per share.
A significant addition to the Board of Directors
Earlier this month, Micron bolstered its board of directors with Robert (Bob) Swan. Swan is a seasoned industry leader with a proven track record in semiconductors, technology, and manufacturing.
Swan brings extensive financial and leadership expertise to Micron. He previously served as CEO and CFO of Intel, managing a large workforce and significant revenue.
His background also includes senior financial positions at eBay and Electronic Data Systems, along with CEO and COO experience at Webvan Group. This well-rounded experience positions him to provide valuable guidance to Micron.
Growth prospects
Micron anticipates continued growth in DRAM and NAND pricing throughout 2024, translating to record revenue and significantly improved profitability in FY25.
The company is excited about the future of HBM4, expecting its trade ratio (indicating value proposition) to surpass even HBM3E due to industry-wide advancements in performance and packaging.
