Skip to main content

Micron Aims for Billions in HBM Sales by 2025, Riding AI Wave

Micron Technology (NASDAQ: MU) is gearing up for a big jump in sales from its high bandwidth memory (HBM). The company expects to go from making hundreds of millions in 2024 to billions in 2025. That's like going from saving pennies in your piggy bank to having stacks of cash in a vault.

Key Points:

  • Big Revenue Jump: Micron is looking at a huge increase in HBM sales, predicting billions in 2025.
  • Main Customer: Nvidia, the big player in AI and graphics, is a major buyer of Micron's HBM3E.
  • New Products: Micron is working on even better HBM models, HBM4 and HBM4E.
  • Supply and Demand: There's going to be less DRAM and NAND memory available in 2024, which means Micron can charge more and make better profits.
  • AI Boom: The rise in AI PCs and smartphones, along with more AI in data centers, is set to drive record revenues. Plus, with Windows 10 support ending, many people will upgrade their PCs in 2025.
  • Government Support: Micron has a preliminary deal for $6.1 billion in federal grants under the CHIPS and Science Act, aimed at building semiconductor plants in Idaho and New York.

What This Means for You:

  1. Revenue Growth: Micron’s expected surge in HBM sales is a big deal and could lead to its stock price rising.
  2. AI Demand: The growing need for AI technology is a huge opportunity for Micron.
  3. Supply Constraints: With less DRAM and NAND memory available, Micron can make more money from what it sells.
  4. Federal Grants: The government’s financial support helps secure Micron’s future growth.

What You Can Do:

  • Keep an Eye on AI: Watch how AI technology develops and how Micron is involved.
  • Understand Supply and Demand: Know that less supply can mean higher prices and better profits for Micron.
  • Follow Micron’s Moves: Pay attention to how Micron uses government grants and its plans for new semiconductor plants.

Micron’s stock dipped a bit after hours on Wednesday, dropping as much as 7%. But with strong growth potential from AI demand and government support, there’s a promising future ahead.

Labels:

Comments

Post a Comment

Popular posts from this blog

Top Glove Bounces Back with Big Profits

Top Glove, the world’s largest glove maker, is back in the profit zone after seven quarters of losses. Thanks to a smart land sale and gains from currency changes, things are looking up. Key Highlights Profit Turnaround:  Top Glove made RM50.67 million in profit for the third quarter ending May 31, 2024. Last year, they had a loss of RM130.59 million in the same quarter. Boost from Sales:  The company sold some property and equipment for RM54.34 million and gained RM22.33 million from favorable currency exchange rates. Revenue Increase:  Their revenue went up by 20% to RM636.88 million, compared to RM530.62 million last year. This is because more people need gloves, and Top Glove could increase prices a bit. Positive Outlook:  Top Glove’s managing director, Lim Cheong Guan, is optimistic. The company sees more opportunities, especially in the US, where new tariffs on Chinese gloves could drive more business their way. Nine-Month Performance:  For the first nine ...
Post a Comment
Read more

5 SGX Stocks with Dividend Yield Higher than 5.4%

5 Singapore Stocks with High Dividend Yields: Get Steady Income! If you enjoy getting a steady stream of extra cash, then dividend stocks are for you! These are companies that pay you part of their profits just for holding their shares. However, not all dividend stocks are created equal. Some offer higher dividend yields, making them more attractive.  Let's take a look at five Singapore stocks that offer attractive dividend yields of 5.4% or more. 1. PropNex Ltd (SGX: OYY) PropNex is a big name in real estate, offering services like real estate brokerage, training, and consultancy. As of February 2024, they had 12,233 sales professionals helping people buy and sell homes. Even though 2023 was tough for PropNex, with revenue falling 18.6% to S$838.1 million and net profit dropping 23.3% to S$47.8 million, they still managed to generate S$57.5 million in free cash flow. They also declared a final dividend of S$0.035, bringing the total dividend for 2023 to S$0.06. This gives PropNex ...
Post a Comment
Read more

Cisco Systems: An Exciting Investment Opportunity

Cisco Systems (NASDAQ: CSCO) was once a tech giant, peaking at $64 per share in 2021. Today, it trades around $45, which could mean it’s undervalued. This might be the perfect time to invest, especially with exciting growth prospects in AI, humanoid robots, and connected devices. Why Cisco Is Attractive Now Strong Financials • Earnings Potential: Analysts predict Cisco will earn $3.70 per share in 2024, dip slightly in 2025, and bounce back to $3.83 in 2026. This suggests solid growth. • Low Valuation: Currently trading at about 12 times its estimated earnings for 2024 and 2026. In contrast, the market trades at over 20 times earnings, making Cisco seem like a bargain. • Solid Balance Sheet: Cisco has $33.21 billion in debt but also holds $19.52 billion in cash. This financial strength allows for increased R&D, higher dividends, or strategic acquisitions, reducing risk for investors. Attractive Dividends • Current Yield: Cisco offers a quarterly dividend of $0.40 pe...
Post a Comment
Read more