Micron (MU) says improved supply and demand environment in current quarter gives the co. additional confidence in the trajectory of their business

• Intends to stay very disciplined with supply and capacity investments as pricing is still far from levels associated with necessary ROI.


• Expect co. pricing to continue to strengthen through the course of 2024.


• Inventories for memory and storage are at or near normal levels for customers across PC, mobile, automotive and industrial end markets.


• FY24 CapEx expected to be between USD 7.5-8.0bln (exp. 7.57bln), primarily to support the HBM3E production ramp.


• In pcs, MU forecasts unit volumes to grow by a low to mid-single-digit percentage in calendar 2024


• Fiscal 2024 front-end cost reductions to track in line with long-term expectations of mid-to-high single digits in DRAM.


• Demand for AI servers has been strong as data centre infrastructure operators shift budgets from traditional servers to AI servers


• Sees fiscal 2024 front-end cost reductions to track in line with long-term expectations of low teens in NAND.


• MU expects PC OEMS to start ramping AI-on-device pcs in the H224.


• On track for volume production in 1-gamma DRAM using extreme ultraviolet lithography (euv) in calendar year 2025


• On track to begin their HBM3E volume production ramp in early 2024


• On track to generate several hundred millions of dollars of HBM revenue in FY2024.


• MU forecast smartphone unit shipments to grow modestly in calendar year 2024.


• Continue to work with US government, chips grants are assumed in our capex plans for fiscal 2024.


• Expect supply-demand balance to tighten in both DRAM and NAND throughout 2024.


• Expect customer inventory to approach normal levels in PC, mobile, autos, industrial end markets sometime in H1 calendar 2024.


• Expects to decrease days of inventory in FY24.

20 Dec 2023 - 21:13- EquitiesImportant- Source: Newswires