Micron Technology, Inc.(NASDAQ: MU) stock enhanced over 4.5% on December 20th, 2017 post their first quarter of 2018 update (as of 9:40AM EST; Source: Google finance). The stock more than doubled this year, which achieved over 110% in this year to date.
The group continued to improve their cost competitiveness during the quarter, delivering a yield maturity on both 1X DRAM as well as a 64-layer 3D NAND. They enhanced their mix of high value solutions, delivering a solid SSD revenues and increasing their SSD shares. Micron started shipping their first 64-layer NAND consumer SSD while launched a fastest high-density 32GB NVDIMMN, which combines Micron’s DRAM and NAND to deliver a persistent memory solution that addresses intense data analytics workloads.
The Compute and Networking Business Unit delivered a FQ1 revenue rise of 13% yoy to $3.2 billion, driven by more than double year-ago levels. Rising server memory content, also enhanced sales to enterprise customers along with strong demand for graphics processing. DRAM bit shipments to both cloud as well as enterprise customers surged more than 50% on a year-over-year.
The group is strengthening their offerings and continue to diversify their portfolio of LPDRAM, MCP, and discrete managed storage solutions to meet the rising needs of their customers. They are also enhancing their portfolio of low-power solutions with the release of new products like their 1X LPDRAM designs. They also shipped initial samples of their 64-layer NAND discrete UFS solution to chipset partners and customers.
The group’s graphics market showed a solid performance driven by the growing popularity of gaming and eSports, which enabled them to deliver a solid graphics revenue, which rose more than 75% year-over-year.
The group forecasts a bit output crossover on 64-layer NAND during the second half of FY2018 and forecasts to achieve a bit output crossover on 1X DRAM by the end of calendar 2018. The group continued to make solid progress with their 3D XPoint technology. Micron’s efforts on 3D XPoint was focused on technology development and early manufacturing ramp, along with focusing on high-value product solutions.