📊 Micron Technology surprises the market: is it the right time to invest?
Micron Technology $MU, one of the leading memory chip makers, released its Q3 2024 results yesterday , once again beating analysts' expectations.
The stock price is up more than 15%!
Revenues grew by a whopping 93,3 % to $7.75 billion, up 1,4 % more than expected. Even more interestingly, the outlook for Q4 is also optimistic - revenue is expected to grow to $8.7 billion, up 6 % more than the market had anticipated.
💰 Micron's profitability was also a pleasant surprise: Non-GAAP earnings per share were $1.18, up 5,9 % up 5.9 percent from the $1.11 forecast . The Q4 outlook also promises strong growth, with earnings per share estimates of $1.74, again beating market expectations ($1.54).
Memory semiconductors are an essential part of today's global technology infrastructure. Whether it's mobile phones, servers in data centers or devices supporting artificial intelligence, memory chips are at the heart of many technologies. The growing demand for storage and fast data access ensures that memory manufacturers like Micron have a key position in the market.
Days of Outstanding Inventory (DIO) - one of the important indicators for semiconductor companies - have risen to 161 days, an increase from the previous 156 days. This growth indicates increased inventories, which may reflect either strong demand or overproduction, which could affect the company's pricing policy in the future.
Micron Technology's key numbers for Q3 2024:
Cyclical nature of semiconductors:
Micron is in the midst of a cyclical growth period, typical of semiconductor companies, which is supported by global demand for memory chips. The rapid growth of data centers, the computing power of modern devices, and new technologies such as AI and machine learning are pushing demand for advanced memory chips ever higher 🚀💾
Long-term investors should therefore keep a close eye on market developments. Management Micron however, expect continued growth in the coming quarters, confirming their strategic position within the global technology infrastructure. 🔋💡💡
The current period of strong growth may present an interesting opportunity to buy shares of the company, especially for those who believe in the long-term growth of the technology sector. However, it's important to remember that any period of growth in this sector tends to be followed by a downturn, so it's important to diversify your portfolio and be prepared for potential market fluctuations.
Micron Technology is experiencing one of its best periods in recent years, with strong growth in sales, profits and a strong outlook for the period ahead. If you believe in the potential of the semiconductor industry and global technology growth, Micron could be an interesting part of your portfolio.
What do you think of this company?
Co-operation could have made sense two years ago to establish a position :) Now they don't see much "air".