The Six Five team discusses Micron Tech Q2 FY24 Earnings.
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Transcript:
Daniel Newman: I shared a chart. I’m going to keep this one pretty simple and easy, because I want to make sure we get to Synopsys, which was just chuck-full of good stuff, but Micron crushed it. They absolutely crushed it, and nobody saw this coming, but maybe, I don’t know, maybe a couple of analysts that said, hey, at some point with all this AI silicon, you’re going to need some high bandwidth memory in order to do this stuff. You’re hearing rumors about high bandwidth memory advancements coming from SK, from Samsung. Well, Micron’s had a whole bunch of innovation with its 232-layer NAND HBM upgrades, and they’re starting to see the momentum. They went from a billion plus dollar loss last quarter to nearly a billion dollar profit in one quarter. The stock jumped to its highest price since I think it was like 2000, Pat. It literally saw a jump.
It looked a little bit like Dell after the earnings when everyone’s like, holy crap, this company has a play. Yes, people, if you are seeing growth in XPUs and GPUs and CPUs doing advanced AI stuff, we’re going to need a whole bunch of high bandwidth memory to get that done. Micron’s got a play, it’s got a big play. It saw its margin grow, it saw its revenue grow, it’s seeing cashflow being generated, Pat. And in a single candle, and I showed that in my tweet. You saw the difference of people finally understanding that Micron is part of the AI story. So, I’m going to keep it fast so we can get to Synopsys, but I’ll pass this one over to you.
Patrick Moorhead: January 2nd, 2024 from Colorado, USA, Patrick Moorhead tweets, the memory boom is back. I put up P&Ls from Micron, SK Hynix, and threw at least the semiconductor P&L in there from Samsung, called it. This one’s easy dude. I spent 10 years in infrastructure, 11 years at AMD and it’s like, it’s boom and bust. There is no in-between, and we are now going into a boom. Everybody’s going to be complaining about lack of availability and all three of these companies are going to be printing-
Daniel Newman: Margin expansion, pricing power.
Patrick Moorhead: Totally. And then, what’s going to be really interesting is with the new storage and memory requirements from AI, smartphones and PCs, how’s that going to work out? But, in the end, this insatiable need, I like to call it the quadrangle between the processing, storage, memory, networking, and here we are. This one is going to have some interesting impacts on pricing. But, listen, these companies put billions of investment and they should be rewarded.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
