Micron Technology, Inc. (MU) Bundle
A Brief History of Micron Technology, Inc.
Micron Technology, Inc. has undergone significant transformations and developments leading to its current status as of 2024. The company specializes in the production of memory and storage solutions, including DRAM and NAND products.
Financial Performance Overview
For the fiscal year ending August 29, 2024, Micron reported total revenue of $25.11 billion, marking a 62% increase from the previous year’s revenue of $15.54 billion. This recovery was primarily driven by increased sales in both DRAM and NAND products.
| Year | Total Revenue (in billions) | DRAM Revenue (in billions) | NAND Revenue (in billions) |
|---|---|---|---|
| 2024 | $25.11 | $17.60 | $7.23 |
| 2023 | $15.54 | $10.98 | $4.21 |
| 2022 | $30.76 | $22.39 | $7.81 |
Product Developments
In 2024, Micron began volume production of its ninth-generation NAND, known as Micron G9 NAND, which features enhanced storage density and efficiency. The company also introduced its 128GB DDR5 server module, designed to meet the growing demands of AI applications.
Market Segments and Revenue Breakdown
Micron's revenue is categorized into several business units. For 2024, the breakdown was as follows:
| Business Unit | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Compute and Networking Business Unit (CNBU) | $9,513 | 38% |
| Mobile Business Unit (MBU) | $6,354 | 25% |
| Embedded Business Unit (EBU) | $4,614 | 18% |
| Storage Business Unit (SBU) | $4,592 | 18% |
Profitability Metrics
Micron’s consolidated gross margin improved to 22% in 2024, recovering from a negative 9% in 2023. This significant turnaround was attributed to increases in average selling prices and cost reductions in manufacturing.
Cash Flow and Investments
For the fiscal year 2024, Micron generated cash flows from operating activities amounting to $8.51 billion, highlighting a robust operational performance. The company invested $8.39 billion in property, plant, and equipment during the same period.
Stock Repurchases and Dividends
Micron repurchased 3.2 million shares of its common stock for $300 million in 2024. The company also declared dividends of $0.115 per share quarterly throughout 2024.
Geographical Revenue Distribution
The geographical breakdown of Micron's revenue for 2024 indicates significant contributions from various regions:
| Region | Revenue (in millions) |
|---|---|
| United States | $13,168 |
| Taiwan | $4,708 |
| Mainland China | $3,045 |
| Other Asia Pacific | $1,330 |
| Japan | $840 | Europe | $818 |
Micron Technology, Inc. continues to adapt and innovate within the semiconductor industry, focusing on high-performance memory solutions to meet the demands of data-intensive applications, particularly in artificial intelligence and cloud computing sectors.
A Who Owns Micron Technology, Inc. (MU)
Major Shareholders
As of 2024, Micron Technology, Inc. (MU) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders of Micron Technology, Inc.:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 1,098,000,000 | 87.6% |
| Insider Ownership | 35,000,000 | 2.8% |
| Retail Investors | 143,000,000 | 11.6% |
Top Institutional Investors
The following table lists the top institutional investors in Micron Technology, Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 169,000,000 | 13.4% |
| BlackRock, Inc. | 165,000,000 | 13.2% |
| State Street Corporation | 119,000,000 | 9.5% |
| FMR LLC (Fidelity) | 98,000,000 | 7.8% |
| Invesco Ltd. | 65,000,000 | 5.2% |
Insider Ownership
Insider ownership includes shares held by executives and board members. The following table provides details on the top insiders holding shares in Micron Technology, Inc.:
| Name | Position | Shares Held |
|---|---|---|
| Sanjay Mehrotra | President and CEO | 12,000,000 |
| Mark Murphy | Chief Financial Officer | 6,000,000 |
| Manoj Bhatia | Chief Technology Officer | 5,000,000 |
| Board of Directors | Various | 12,000,000 |
Recent Shareholder Changes
As of August 29, 2024, Micron Technology, Inc. has seen significant changes in its shareholder base. The following table summarizes these changes:
| Change Type | Shares Affected | Impact |
|---|---|---|
| Stock Buyback Program | 3,249,449 | Reduced Outstanding Shares |
| New Institutional Investments | 50,000,000 | Increased Institutional Ownership |
| Insider Selling | 1,000,000 | Reduced Insider Ownership |
Market Trends and Ownership Impact
The ownership dynamics of Micron Technology, Inc. are influenced by market trends in the semiconductor industry. In 2024, the company reported:
- Total Revenue: $25.11 billion
- Net Income: $778 million
- DRAM Revenue: $17.60 billion
- NAND Revenue: $7.23 billion
The improved financial performance has attracted more institutional investors, reflecting a bullish sentiment on Micron's growth prospects in the semiconductor market.
Micron Technology, Inc. (MU) Mission Statement
Overview of Mission Statement
Micron Technology, Inc. aims to be a global leader in memory and storage solutions that empower customers to harness the full potential of data. Their mission emphasizes innovation, quality, and collaboration with customers to deliver cutting-edge technology that drives advancements in various industries.
Core Values and Principles
- Innovation: Commitment to continuous improvement and technological advancement in memory and storage products.
- Customer Focus: Building strong relationships with customers to understand and meet their needs.
- Integrity: Upholding ethical standards and transparency in all business dealings.
- Sustainability: Pursuing environmentally responsible practices in manufacturing and product development.
Financial Performance Metrics
As of 2024, Micron Technology's financial performance reflects its mission-driven approach. Below are key financial metrics from the fiscal year ending August 29, 2024:
| Metric | Amount (in millions) |
|---|---|
| Total Revenue | $25,111 |
| Gross Margin | $5,613 |
| Net Income | $778 |
| Earnings Per Share (Basic) | $0.70 |
| Research and Development Expenses | $3,430 |
Market Segments and Business Units
Micron operates through several business units, focusing on different market segments that align with its mission. The following table highlights revenue from each business unit for 2024:
| Business Unit | Revenue (in millions) |
|---|---|
| Compute and Networking Business Unit (CNBU) | $9,513 |
| Mobile Business Unit (MBU) | $6,354 |
| Embedded Business Unit (EBU) | $4,610 |
| Storage Business Unit (SBU) | $4,590 |
Strategic Initiatives
Micron's strategic initiatives focus on advancing memory technology to meet the growing demands of the data-driven world. In 2024, the company launched several key products:
- Volume production of Micron G9 NAND, the industry’s ninth-generation 3D NAND.
- Introduction of the 128GB DDR5 server module, enhancing performance for memory-intensive applications.
- Launch of GDDR7 graphics memory, aimed at improving user experience in high-performance gaming and AI applications.
Global Impact and Sustainability
Micron is committed to sustainable practices, aiming for reduced environmental impact through innovative manufacturing processes. In 2024, the company has undertaken initiatives to:
- Invest in energy-efficient technologies.
- Enhance supply chain sustainability.
- Support local communities through educational and environmental programs.
Challenges and Opportunities
Despite facing challenges such as market volatility and supply chain disruptions, Micron continues to leverage its mission to innovate and adapt. The company remains focused on opportunities in AI, cloud computing, and high-performance computing sectors.
Conclusion
Micron Technology, Inc.'s mission statement reflects its commitment to leading the memory and storage industry through innovation, customer collaboration, and sustainable practices. As the company navigates the complexities of the market, its core values guide its operations and strategic direction.
How Micron Technology, Inc. (MU) Works
Company Overview
Micron Technology, Inc. (MU) is a global leader in memory and storage solutions. The company primarily focuses on the production of DRAM and NAND memory products, essential for a wide range of applications, including data centers, PCs, mobile devices, and embedded systems.
Financial Performance 2024
For the fiscal year ending August 29, 2024, Micron reported a total revenue of $25.11 billion, a significant increase of 62% compared to $15.54 billion in 2023. This revenue growth was driven by substantial increases in both DRAM and NAND product sales.
| Year | Total Revenue (in billions) | DRAM Revenue (in billions) | NAND Revenue (in billions) |
|---|---|---|---|
| 2024 | $25.11 | $17.60 | $7.23 |
| 2023 | $15.54 | $10.98 | $4.21 |
| 2022 | $30.76 | $22.39 | $7.81 |
Revenue Breakdown by Business Unit
The revenue generated from different business units in 2024 showed substantial growth across the board:
| Business Unit | 2024 Revenue (in billions) | 2023 Revenue (in billions) |
|---|---|---|
| Compute and Networking Business Unit (CNBU) | $9.51 | $5.71 |
| Mobile Business Unit (MBU) | $6.35 | $3.63 |
| Embedded Business Unit (EBU) | $4.61 | $3.64 |
| Storage Business Unit (SBU) | $4.59 | $2.55 |
Operating Income and Expenses
Micron's operating income for 2024 was $1.30 billion, a recovery from an operating loss of $5.75 billion in 2023, reflecting improved margins and cost efficiencies.
| Year | Operating Income (in billions) | Research & Development (R&D) Expenses (in billions) | Selling, General & Administrative (SG&A) Expenses (in billions) |
|---|---|---|---|
| 2024 | $1.30 | $3.43 | $1.13 |
| 2023 | $(5.75) | $3.11 | $0.92 |
| 2022 | $9.70 | $3.12 | $1.07 |
Cash Flow Analysis
Micron's cash flows for the year ending August 29, 2024, indicate a net cash provided by operating activities of $8.51 billion.
| Cash Flow Type | 2024 Amount (in billions) |
|---|---|
| Operating Activities | $8.51 |
| Investing Activities | $(8.31) |
| Financing Activities | $(1.84) |
Market Trends and Strategic Initiatives
In 2024, Micron experienced strong demand growth attributed to the deployment of AI technologies and advancements in data center infrastructure. The company has made significant investments in R&D to enhance its product offerings, including the launch of next-generation NAND and DRAM solutions.
Debt and Equity Structure
As of August 29, 2024, Micron reported total liabilities of $24.29 billion and total equity of $45.13 billion, indicating a strong balance sheet position.
| Financial Metric | Amount (in billions) |
|---|---|
| Total Liabilities | $24.29 |
| Total Equity | $45.13 |
Outlook
Micron's outlook for 2025 remains optimistic, with anticipated continued improvements in memory demand driven by AI applications and the ongoing evolution of data center technologies.
How Micron Technology, Inc. (MU) Makes Money
Revenue Streams
Micron Technology, Inc. generates revenue primarily through its semiconductor memory and storage products, which are categorized into four main business units: Compute and Networking Business Unit (CNBU), Mobile Business Unit (MBU), Embedded Business Unit (EBU), and Storage Business Unit (SBU). For the fiscal year 2024, the total revenue was reported at $25.11 billion, reflecting a significant increase of 62% compared to $15.54 billion in 2023.
| Business Unit | 2024 Revenue (in billions) | 2023 Revenue (in billions) | 2022 Revenue (in billions) |
|---|---|---|---|
| CNBU | $9.51 | $5.71 | $13.69 |
| MBU | $6.35 | $3.63 | $7.26 |
| EBU | $4.61 | $3.64 | $5.24 |
| SBU | $4.59 | $2.55 | $4.55 |
Product Categories
Micron's product offerings include various types of memory technologies such as DRAM, NAND, and NOR. In 2024, Micron reported DRAM revenue of $17.60 billion, while NAND revenue was $7.23 billion. The company also reported other revenue, primarily from NOR products, at $0.28 billion.
| Product Type | 2024 Revenue (in billions) | 2023 Revenue (in billions) | 2022 Revenue (in billions) |
|---|---|---|---|
| DRAM | $17.60 | $10.98 | $22.39 |
| NAND | $7.23 | $4.21 | $7.81 |
| Other (primarily NOR) | $0.28 | $0.36 | $0.56 |
Key Markets
Micron serves various markets including:
- Data Centers
- Client PCs
- Mobile Devices
- Automotive Applications
- Consumer Electronics
Sales Performance by Business Unit
The sales performance across different business units showed significant growth in 2024:
- CNBU: Revenue increased by 67% driven by higher bit shipments and average selling prices.
- MBU: Revenue surged by 75% due to increases in mobile DRAM and NAND.
- EBU: Revenue rose by 27% mainly from higher bit shipments.
- SBU: Revenue improved by 80% attributed to increases in average selling prices and bit shipments.
Cost of Goods Sold and Gross Margin
Micron's cost of goods sold (COGS) for 2024 was reported at $19.50 billion, resulting in a gross margin of $5.61 billion, or 22% of total revenue. This marks a recovery from the previous year's negative gross margin of 9%.
| Year | Revenue (in billions) | COGS (in billions) | Gross Margin (in billions) | Gross Margin Percentage |
|---|---|---|---|---|
| 2024 | $25.11 | $19.50 | $5.61 | 22% |
| 2023 | $15.54 | $16.96 | ($1.42) | (9%) |
| 2022 | $30.76 | $16.86 | $13.90 | 45% |
Research and Development Expenses
Research and development (R&D) expenses for 2024 increased to $3.43 billion, accounting for 14% of total revenue. This increase was attributed to higher employee compensation and increased volumes of development wafers.
Operating Income
The operating income for Micron in 2024 was reported at $1.30 billion, representing 5% of total revenue, a significant recovery from an operating loss of $5.75 billion in 2023.
| Year | Operating Income (in billions) | Operating Margin Percentage |
|---|---|---|
| 2024 | $1.30 | 5% |
| 2023 | ($5.75) | (37%) |
| 2022 | $9.70 | 32% |
Net Income
Micron's net income for 2024 was reported at $778 million, compared to a net loss of $5.83 billion in 2023.
| Year | Net Income (in millions) |
|---|---|
| 2024 | $778 |
| 2023 | ($5,833) |
| 2022 | $8,687 |
Market Dynamics and Competitive Landscape
Micron operates in a highly competitive environment, with demand driven by trends in AI, cloud computing, and mobile technology. The company is focused on innovation in its product lines to maintain a competitive edge, particularly in DRAM and NAND technologies.
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