More Good News to Come From Micron?

Third-quarter revenue grew to $5.57 billion, up 20% sequentially, led by a 25% gain in server DRAM sales, a 30%-plus increase in SSD revenue, and record quarterly revenue from the embedded business unit (which features automotive, consumer, and industrial end-markets). DRAM sales rose 20% over the prior quarter to $3.56 billion, with the aforementioned server gains partially offset by declines in PC DRAM. We were pleased to see SSD sales to cloud and enterprise customers exceeding client SSD sales, as the former generally boast higher capacities and ASPs. Gross margins rose to 46.9% from 36.7% last quarter, as Micron enjoyed strong bit growth in NAND, ASP increases in DRAM, and cost per bit reductions in both DRAM and NAND.

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