Micron Technology, Inc. (MU) J.P. Morgan's 52nd Annual Global Technology, Media and Communications Conference (Transcript)

Micron Technology, Inc. Conference Call Summary Company Overview - Company: Micron Technology, Inc. (NASDAQ: MU) - Event: J.P. Morgan's 52nd Annual Global Technology, Media and Communications Results Conference - Date: May 21, 2024 Key Industry Insights - Industry Context: The semiconductor industry is experiencing tight supply and demand dynamics, with expectations for continued strong pricing improvements and record revenue outlook for FY '25 [4][5][6] - Growth Drivers: Significant growth is anticipated in data centers, driven by AI applications, particularly for high-bandwidth memory (HBM) and data center SSDs [4][5][6] Financial Performance and Projections - CapEx Guidance: FY '24 CapEx is projected to increase to approximately $8 billion, up from a previous estimate of $7.5 billion to $8 billion [5] - Revenue Outlook: Micron expects record revenue in FY '25 and significantly improved profitability year-over-year [6] - Free Cash Flow: Positive free cash flow is anticipated for both the May and August quarters [6] Impact of External Events - Taiwan Earthquake: The earthquake in Taiwan resulted in a mid-single-digit percentage loss of quarterly DRAM output, but recovery efforts were effective, and operations are back to normal [7][9] Market Dynamics - Data Center Inventory: Data center inventories are normalizing as expected, with growth anticipated in the second half of the year [11] - DRAM and NAND Demand: DRAM bit demand is projected to grow in the mid-teens percentage range, while NAND bit demand is expected to grow in the low 20% range [12][13] High-Bandwidth Memory (HBM) Insights - HBM Production: Micron has begun shipping production bits of its 8 high HBM3E solution, with expectations of several hundred million dollars in revenue for FY '24 and a multibillion-dollar business in FY '25 [17][19] - Market Share Growth: HBM is expected to grow significantly, with Micron projecting over 50% CAGR for HBM bits in the near term [25][26] Product Development and Technology - 12 High HBM: Micron is sampling its 12 high HBM product, which offers 50% more DRAM content, expected to drive significant demand growth in 2025 [28] - EUV Technology: Micron is on track to introduce EUV technology in its 1 gamma DRAM process in 2025, with confidence in manufacturability and cost-down capabilities [50][52] Competitive Positioning - Enterprise SSD Market: Micron has become the third-largest global enterprise SSD supplier, with significant share growth in both SATA and PCIe-based data center SSDs [43][45] - AI-Driven Demand: The demand for SSDs is increasingly driven by AI applications, with new data centers heavily utilizing SSDs [49] Conclusion - Market Outlook: Micron is well-positioned to capitalize on the growth opportunities presented by AI and data center demands, with a strong focus on advanced technology and product development [54][55]