Micron is the canary in the coal mine with its fiscal quarter ending mid calendar quarter. The quarterly result reveals that the memory boom is not over yet.
The strong quarterly revenue growth is not followed by any COGS growth, indicating that once more the growth is entirely price driven.
The yearly growth is slightly down year over year compared to last quarter but the quarterly revenue growth is still very strong and over 10% for the 6th quarter in a row.
Overall this has a massive impact on Microns operating cash flow and revenue.
An interesting signal in the Micron reporting is that the capital expenditure has increased by 55% quarter over quarter. Although Micron states this is according to the plan the Q4 capital expenditure signals a capacity increase after a few quarters of replacement level Capex spend.
Growth is still driven by the Compute and networking business and predominantly by DRAM to the data center.
Both Microns Flash and DRAM business are now dominated by the data center – in particular the hyperscale and cloud data centers. The gaming area is growing and includes DRAM for bitcoin mining.
You can find the 17-Q4 Micron Factbook here
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