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Micron Technology Inc MU

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Micron Maintains its Rosy Memory Outlook for the Rest of 2021; Raising FVE to $90

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

Micron reported strong fiscal third-quarter results, with revenue exceeding the high-end of guidance. CEO Sanjay Mehrotra noted the firm’s expectations for 2021 DRAM and NAND bit growth have increased relative to the prior quarter, due to the macroeconomic recovery from the pandemic as well as secular drivers such as AI and 5G. Furthermore, end market strength is driving unmet demand for both DRAM and NAND, with non-memory component shortages also impacting Micron’s customers’ demand. We expect the industry shortages to alleviate in the back half of 2021, but memory demand should remain robust into 2022 as chip customers are likely to raise their normalized inventory levels. Management also expects memory pricing to continue to increase during Micron’s fiscal fourth quarter (ending August 2021).

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Company Profile

Business Description

Micron historically focused on designing and manufacturing DRAM for PCs and servers. The firm then expanded into the NAND flash memory market. It increased its DRAM scale with the purchase of Elpida (completed in mid-2013) and Inotera (completed in December 2016). The firm's DRAM and NAND products tailored to PCs, data centers, smartphones, game consoles, automotives, and other computing devices.

Contact
8000 South Federal Way, P.O. Box 6
Boise, ID, 83716-9632
T +1 208 368-4000
Sector Technology
Industry Semiconductors
Most Recent Earnings May 31, 2021
Fiscal Year End Sep 3, 2021
Stock Type Cyclical
Employees 40,000

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