Micron Technology stock trades near recent highs as memory demand supports earnings

Micron Technology stock is trading close to its recent high as the Boise based memory specialist (ISIN US5951121038) benefits from firmer DRAM and NAND pricing and a return to profitability in fiscal 2024 according to company reports for the year ended 30 August 2024.

Revenue up year over year

Micron Technology Inc. reported that net sales for fiscal 2024 reached roughly $25 billion, compared with about $16 billion in fiscal 2023, marking a revenue increase of around 56 percent year over year according to the companys annual filing for the period ended 30 August 2024.

Within that total, revenue from DRAM products accounted for the majority of sales, reflecting stronger bit demand and improved average selling prices compared with fiscal 2023 as described in Microns management discussion for fiscal 2024.

Profitability returns in fiscal 2024

After a loss in the previous year, Micron reported that it returned to profitability in fiscal 2024, with net income of approximately $4 billion for the year ended 30 August 2024, compared with a net loss of around $1.2 billion in fiscal 2023 according to the companys annual report.

This swing in profitability was driven by higher revenue, better factory utilization, and cost reductions that helped improve gross margin compared with the prior year, as management noted in its commentary on fiscal 2024 results.

DRAM and NAND drive growth

Micron highlighted in its fiscal 2024 reporting that DRAM represented around seventy percent of total revenue, with NAND contributing most of the remainder, reflecting a business mix focused on memory and storage solutions for data centers, PCs, mobile devices, and automotive applications.

Average selling prices for DRAM rose compared with fiscal 2023, while NAND prices stabilized, helping overall gross margin improve from a negative level in the prior year to a positive margin in fiscal 2024 according to Microns commentary on segment performance.

Shares trade near recent high

Micron Technology stock has been trading near a recent twelve month high, with the share price around $120 in recent sessions on Nasdaq, compared with a low near $60 earlier in the same twelve month period based on standard market price summaries.

This move places the stock roughly double the level of its twelve month low, reflecting improved investor confidence in the companys earnings recovery and in the broader demand outlook for memory and storage products.

Key products in memory portfolio

Micron Technology offers DRAM and NAND based products for a range of end markets, including server memory modules for data centers, solid state drives for client and enterprise storage, and embedded memory solutions for automotive and industrial applications, as outlined in its corporate overview.

Micron Technology stock price and valuation

As a result of the strong share price performance, Micron Technology stock implies a market capitalization in the tens of billions of dollars at a share price around $120 on Nasdaq, aligning the company with other large US semiconductor names in terms of equity market size.