01—Abstract
Summary
Summary of the 10-K filed October 4, 2024. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. has reported a significant rebound in fiscal year 2024, marking a substantial recovery from the challenging conditions experienced in 2023.
The company saw a 62%a increase in total revenue compared to the previous year, driven by strong performance in both DRAM and NAND product sales, which benefited from improved average selling prices and increased bit shipments. This turnaround is attributed to a more balanced industry supply and demand environment, coupled with Micron's strategic focus on product innovation and operational efficiency. The company is also strategically investing in future growth, particularly in advanced memory technologies crucial for AI and other compute-intensive applications.
Significant capital expenditures are planned for expanding production capacity, especially in the United States, supported by government incentives like the CHIPS Act. Micron's portfolio is well-positioned to capitalize on the growing demand for high-performance memory solutions, particularly in the data center and AI markets. Despite ongoing competitive pressures and industry cyclicality, Micron's financial recovery and strategic investments signal a positive outlook for future performance.
02—Key points
Key Highlights
- Total revenue increased by 62% in fiscal year 2024 compared to 2023, driven by a strong recovery in DRAM and NAND sales.
- DRAM sales increased by 60% due to a mid-40% rise in bit shipments and a low-teen percentage increase in average selling prices.
- NAND sales increased by 72% driven by a low-30% increase in bit shipments and a low-30% increase in average selling prices.
- The company is investing heavily in advanced memory technologies like HBM3E and DDR5 to meet the growing demand from AI and data-centric applications.
- Micron is expanding its manufacturing capacity, with significant investments planned in new fabs in the United States, supported by government incentives.
- The company reported improved gross margins of 22% in 2024, a significant improvement from negative 9% in 2023, indicating a healthier market and operational environment.
- Micron's R&D expenses increased by 10% in 2024, reflecting continued investment in next-generation products and process technologies.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Micron Technology Inc kept $0.03.
- Revenue$25.11B100.0%
- Cost of revenue−$19.50B77.6%
- Gross profit$5.61B22.4%
- Operating costs−$4.31B17.2%
- Operating income$1.30B5.2%
- Interest, other & tax−$526.0M2.1%
- Net income$778.0M3.1%
Where FY2024 revenue went
$25.11B- Cost of revenue: $19.50B, 78% of revenue
- R&D: $3.43B, 14% of revenue
- Net income: $778.0M, 3.1% of revenue
- SG&A: $1.13B, 4.5% of revenue
- Interest, other & tax: $526.0M, 2.1% of revenue
Kept 3.1% as net incomeNet income $778.0M · 3.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed October 4, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $25.11B$15.54B | +61.6% |
| Cost of Revenue | $19.50B$16.96B | +15.0% |
| Gross Profit | $5.61B-$1.42B | +496.4% |
| R&D Expenses | $3.43B$3.11B | +10.1% |
| SG&A Expenses | $1.13B$920.00M | +22.7% |
| Operating Income | $1.30B-$5.75B | +122.7% |
| Net Income | $778.00M-$5.83B | +113.3% |
| EPS (Basic) | $0.70$-5.34 | +113.1% |
| EPS (Diluted) | $0.70$-5.34 | +113.1% |
| Shares Outstanding (Basic) | 1.10B1.09B | +1.1% |
| Shares Outstanding (Diluted) | 1.12B1.09B | +2.3% |
05—Questions
Frequently Asked Questions
What drove Micron's revenue recovery in fiscal year 2024?
Micron's revenue recovery in fiscal year 2024 was primarily driven by a significant improvement in the memory market's supply and demand balance. This led to higher average selling prices and increased bit shipments for both DRAM and NAND products. The company also benefited from its strategic focus on advanced technologies, particularly those supporting AI and data-intensive workloads.
How is Micron positioning itself for future growth, especially related to AI?
Micron is investing in advanced memory technologies like High-Bandwidth Memory (HBM3E) and DDR5, which are critical for the performance of AI and data-centric applications. The company is also expanding its manufacturing capacity, including new leading-edge fabs in the United States, to meet the anticipated demand for these high-performance memory solutions.
What is Micron's outlook on industry conditions and their financial performance?
Micron experienced substantial improvements in pricing and margins throughout fiscal year 2024, a significant turnaround from the weak demand and pricing seen in 2023. The company exited the year with strong momentum and anticipates these positive trends to continue, supported by increasing demand driven by AI deployments and disciplined industry supply.
What are the key risks or challenges facing Micron?
Micron faces several risks, including the inherent volatility in average selling prices of its products, intense competition within the semiconductor industry, and the capital-intensive nature of its operations. Geopolitical factors, supply chain disruptions, and the rapid pace of technological change also pose challenges. The company also faces risks related to intellectual property, legal proceedings, and government regulations.
06—Continue