Description
Micron delivered a mixed set of results for the previous quarter, missing out on the revenue expectations of Wall Street but managing an earnings beat. The overall demand for cloud services is strong, and there is a desire for servers that cannot be met since key server parts are still in quite severe short supply. As a result, demand is being reduced for the other parts of the supply chain, which already have more than enough inventory, because the servers cannot be built. Therefore, although the overall demand for clouds is generally healthy, this is one factor that is having an impact on it. The other factor is that cloud users typically have a high inventory of memory and storage, which needs to be reduced. These are among the key factors influencing Micron’s demand in the foreseeable future. The management believes that cloud demand will continue to outpace other market segments even as the economy develops along the course that most people anticipate. During the quarter, it also announced its plan to build the largest semiconductor fabrication facility in the U.S. We give Micron a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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