This Is the Single Most Important Number from Micron's Monster Earnings Report
Key takeaways
- MU NVDA Last week, the artificial intelligence (AI) community held its breath ahead of Micron Technology's (NASDAQ: MU) fiscal third-quarter earnings call.
- What most investors are overlooking is how Micron is reshaping its customer relationships.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
MU NVDA Last week, the artificial intelligence (AI) community held its breath ahead of Micron Technology's (NASDAQ: MU) fiscal third-quarter earnings call. Both revenue and earnings per share (EPS) absolutely blew Wall Street's expectations out of the water. But interestingly enough, sales and profits weren't the most important takeaway from the report.
What most investors are overlooking is how Micron is reshaping its customer relationships. The company has implemented strategic customer agreements (SCAs) at a time when AI is driving unprecedented demand for memory and storage. These multiyear contracts provide committed volumes of DRAM and NAND while bringing higher revenue visibility and margin stability than traditional arrangements during prior boom cycles.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »