The end of AI is in the storage chip industry.

On February 20, 2024, Micron Technology (MU) reported Q2 results for the 2021 fiscal year. In the wake of the Earnings Reports, the company's share price jumped 14%, and continued to hit new all-time highs for several days thereafter.

Beauty is seen as a trend sign in the Semiconductor Industry, and companies have an important place in their industry. That's why, seeing the achievements of Beautify helps the major Semiconductor Industry.

This article, Beautiful Business, Circularity, Growth, and these three ways help the world to better understand these companies and the investment opportunities that lie ahead.

Why Micron Is Called Semiconductor Wind Benchmark

Micron Technology is a semiconductor chip company that primarily stores chips.

Cosmic Earnings Reports have been called the trend in the Semiconductor Industry. Because many industries require storage chips in semiconductors, the movement of the storage chip industry is a strong guideline for the semiconductor industry.

There are mainly two types of storage chips, DRAM and NAND, which can easily understand the internal rules of storage and hard drives that we have described. End-end applications include computers, Smart Phones and other electronic products. In recent years, data centers have seen a huge demand for chip storage.

Beautifully and not the world's largest storage chip industry market share, there are Samsung and Sea Express ahead of Beautifuls

Looking at the NAND market, the overall Industry Wall is higher, with the top 5 companies accounting for more than 95% of the market share, while the market share for beauty ranks fifth with 13.5%. The top two divisions are Samsung and Mercedes, with gains of 32.3% and 18.6% respectively.

In contrast, DRAM has a higher barrier to entry, with only Samsung, Helix and Mercury three of the mainstream players in the market. Micron ranked third in the market share, accounting for 25.8%.

Periodization of Micron

The storage chip market has a marked cyclicality.

The cyclicality, which is indicated by technological innovation, and the economic environment also contribute to changes in the supply chain of the Industry, reflecting the price of the chip.

In other words, it is the price of Mico's products that will be seriously affected by the demand of the downstream market.

When travel demand is high, the company's products sell well and demand is not in demand, which can lead to higher prices and a “price increase” may occur.

When travel demand is weak, the company's product sales are poor, large inventories are piled up, and the company is forced to start reducing the price of inventories, leading to a “drop in volume”.

Therefore, for the Periodic Industry and Companies, the position of the cyclical sector is extremely important.

From 2022 to today, the chip storage industry has experienced an unprecedented winter. Due to the lack of end-to-end demand and the industry-leading stock market outlook, the global storage chip market model for 2023 is only $89.6 billion, down from $153.8 billion in 2021.

With the footage of the chip cycle, beautiful performance takes a huge hit. In the 2023 fiscal year, beauty revenues were $15.5 billion, down nearly 50% from the same period. Net income is up from $8.687 billion in fiscal 2022 to a loss of $5.833 billion in fiscal 2023.

Heading into FY2024, Migong's performance has recovered and many investors are concerned about whether the cycle's turning point has come?

Investors are allowed to find a line between stocks and price on these two Indicators.

MICRO ANNOUNCES THE STATUS OF ITS INVENTORY AND THE NUMBER OF INVENTORY TURNOVER DAYS EACH QUARTER. Inventory Turnover Days is a measure of a company's inventory management capacity. The fewer turnaround days indicate the faster inventory changes, and indicates product undersupply.

Micron FY24Q2 quarterly inventory turnover is 160 days, keeping pace with the quarter, but the company expects a drop to 120 days by the end of FY2024, with a further decline in FY25, with a side note that product demand is strong.

On the other hand, the Micron Earnings Reports conference will be revealed, and the price of storage chips will rise steadily. Management expects the price of storage chips to rise further in 2024.

Combined with the lackluster stock situation and the company's decline in product prices, the stock chip industry's slump may have ended and is entering a recovery cycle.

The growth of beautiful light

Speaking of periodicity, let's talk about the growth of beauty and beauty.

Depending on the terminal application, the beautiful storage chips are mainly used for the following three terminal applications: PCs, Smartphones, and Data centers.

Smart Phones are a relatively mature market for PCs, so there is no growth. Therefore, the growth momentum of beauty comes more than from the data center market, and HBM is the key to the increase in beauty.

HBM (High Bandwidth Memory) is a new type of CPU/GPU memory chip for high-bandwidth storage. HBM can meet the real demands of high computing power and storage in the big model era, and in all storage chips, HBM is considered to be the most suitable storage chip for AI training and management. Hence, HBM has become a reservoir of revenue growth for Storage Industry companies.

The product in the field of beauty is HBM3E. According to Microsoft Earnings Reports, the HBM3 has been validated by NVIDIA and will be used with the latest series of H200 AI chips.

How much revenue can HBM3 bring to Micron?

In the last quarter, Micron began mass production and confirmed the first revenue of HBM3E, and then entered the mass shipment phase.

The company expects HBM to generate revenues of US$ in fiscal 2024, and HBM revenue is expected to add a decent overall gross margin starting next quarter.

In addition, the company also revealed that HBM is in the undersupply stage, with HBM sold out in 2024 and the vast majority of supplies in 2025 have been distributed.

In other words, the demand for AI will continue to be reflected in the results of the company from the next quarter, becoming the growth engine of the company's revenue.

To summarize

• Micron is a semiconductor chip company that primarily makes storage chips, and its Earnings Reports have been described as a trend in the Semiconductor Industry. BEAUTY IS RANKED 5TH IN NAND MARKET AND 3RD IN DRAM MARKET.

• The healthy stock chip market has a cyclical impact, an industry-led decline in earnings in 2023, stock turnover figures and a rise in forward prices indicate that the industry may have recovered.

• Micron's growth potential comes primarily from the data center market, where HBM is key. HBM3 is expected to generate billions of dollars in revenue for the company in FY 2024 and be a growth engine for the company's revenue.

Risk Disclosure: This content does not constitute research reports and is for reference only and does not serve as a basis for any investment decisions. The information referred to in this article is not a comprehensive description of the securities, markets or developments described. Although the source of information is considered reliable, the accuracy or completeness of the above is not guaranteed. In addition, the accuracy of any statements, opinions or predictions made in this article is not guaranteed.