BOISE, Idaho - Micron Technology, Inc. (NASDAQ:MU) has started shipping its ninth-generation (G9) triple-level cell (TLC) NAND solid-state drives (SSDs), claiming the industry's highest transfer speed of 3.6 GB/s. The company announced on Tuesday that its Micron 2650 NVMe SSD, which incorporates G9 NAND, is now in volume shipment, marking a first for the industry.
Micron's latest technology also boasts up to 99% higher write bandwidth and 88% better read bandwidth per die over current market alternatives, potentially translating into greater performance and energy efficiency for SSDs and embedded NAND solutions. The G9 NAND maintains a small footprint, using 28% less space than competitors, while still offering high-density storage.
The Micron 2650 NVMe SSD, specifically, has shown to outperform competing SSDs in PCMark® 10 benchmark testing, according to vice president and general manager of Client Storage at Micron, Prasad Alluri. The drive reportedly achieves up to 38% higher scores than its competitors.
Jeff Janukowicz, research vice president at IDC, emphasized the growing demand for high-performance storage to keep pace with the data generated by advancements in AI. He noted that SSDs like the Micron 2650, which leverage the latest generation of NAND innovations, will be crucial for a wide range of users.
The Micron 2650 NVMe SSD features accelerated caching for faster write performance and provides near-theoretical saturation performance for PCIe Gen4, with up to 7,000 MB/s sequential read. It is currently available for client OEMs and is also in qualification with customers in component form, as well as in a consumer-based Crucial SSD.
Micron Technology reported a robust Q3 revenue of $6.81 billion, surpassing estimates. The company's fourth-quarter revenue projection, driven primarily by sales of its high-bandwidth memory chips, also met expectations.
Analyst firms, including Citi, KeyBanc, Wells Fargo, and BofA Securities, maintained their buy ratings on Micron. Notably, KeyBanc increased Micron's price target to $165, maintaining an Overweight rating due to potential market share gains in the HBM3e segment amid competitor Samsung (KS:005930)'s difficulties.
Micron also launched the Micron 9550 SSD, claimed to be the fastest data center solid-state drive currently available, specifically designed to enhance artificial intelligence workload performance. This product integrates Micron's proprietary controller, NAND, DRAM, and firmware, aiming to set a new benchmark in performance, power efficiency, and security for data center operations.
Lastly, the company has established a memorandum of terms with the U.S. Department of Commerce, which could result in up to $6.1 billion in direct funding from the CHIPS Act for the development of its facilities in Idaho and the first two fabrication plants in New York.
InvestingPro Insights
As Micron Technology, Inc. (NASDAQ:MU) propels forward with its latest NAND technology, the company's financial health and market performance provide a broader context for its innovative strides. Micron has raised its dividend for three consecutive years, reflecting a commitment to returning value to shareholders amidst its technological advancements. This strategic financial management aligns with the company's position as a prominent player in the Semiconductors & Semiconductor Equipment industry.
InvestingPro data underscores the company's growth trajectory, with a notable revenue growth of 17.6% in the last twelve months as of Q3 2024. This financial vigor is further highlighted by a significant quarterly revenue growth of 81.53% in Q3 2024, signaling robust sales performance. Despite facing challenges with gross profit margins, which stood at 11.42% for the same period, analysts remain optimistic about Micron's future. They predict the company will be profitable this year, a sentiment bolstered by 19 analysts revising their earnings upwards for the upcoming period—an InvestingPro Tip that suggests confidence in Micron's financial prospects.
Investors interested in deeper insights can find additional InvestingPro Tips for Micron, which provide a comprehensive analysis of the company's financial health and market potential. For those looking to leverage these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
It is also worth noting that Micron operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, indicating a solid financial foundation to support its ongoing and future initiatives. With the market cap standing at $119.59 billion USD and stock performance showing a high return over the last year, Micron's fiscal strategy seems to be well-aligned with its ambitious technological pursuits in the storage and memory sector.
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