Micron Technology (MU) reported better-than-expected fourth quarter results. Dan Morgan, Synovus Trust senior portfolio manager, joins Market Domination hosts Josh Lipton and Julie Hyman to break down what the report tells investors about the company. Morgan explains, “It does appear that they are beginning to see a real good benefit from HBM, which, of course, is the high bandwidth memory that’s used with the AI chip. So we’re coming out of a down cycle. We’ve had a couple of good quarters. Now we’re getting this AI top over the numbers, and it looks like they did gain from that. Looking across Micron’s segments, Morgan highlights how important memory driven by AI chip demand supported the earnings beat. “Smartphones and PCs aren’t doing that great,” the analyst says. “They’re just starting to get out of the hole, and you have other applications, industrial auto, and so forth. And you’re right. If you look at DRAM pricing in terms of spot pricing, it’s just kind of leveled out…[Micron’s] main markets, which are across the board, there’s flash memory and there’s DRAM chips. Just about everything is still kind of muted, right? It’s still trying to get going. So if you were to take out this AI component, the data server space, we probably wouldn’t be talking about it because it’s just kind of just slowly unthawing.” Morgan says he hopes the company will provide more color about how it expects to gain from Nvidia’s (NVDA) new AI chip, Blackwell, which uses its HBM tech. “It’s all going to be about ‘how much of a positive effect are you getting this?'” The analysts indicates his projections are consistent with reports that Micron expects HBM to be sold out this year into next.
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