Source URL: https://www.theregister.com/2024/09/26/micron_q4_2024/
Source: The Register
Title: Memory-maker Micron predicts new wave of server consolidation
Feedly Summary: AI boosted revenue last year, demand for more RAM in devices to help in 2025
Micron has told investors it expects a new round of server consolidation to add to its already strong growth.…
AI Summary and Description: Yes
Summary: Micron’s recent announcement highlights a significant increase in revenue driven by the demand for memory in AI servers and traditional datacenter consolidation. The company’s forward-looking strategies and investments in manufacturing are set to capitalize on this trend, indicating strong growth in the AI and cloud sectors.
Detailed Description:
Micron Technologies has reported impressive financial results and future expectations that underscore its pivotal role in the AI and cloud computing markets. Here are the key points from their announcement:
– **Financial Performance**:
– Q4 FY 2024 revenue reached $7.75 billion, marking a 93% year-over-year increase.
– Full-year revenue totaled $25.1 billion, up from $15.6 billion the previous year.
– Net income significantly improved from a loss of $5.9 billion last year to a profit of $778 million.
– **AI Server Demand**:
– CEO Sanjay Mehrotra noted that the sales spike is largely attributed to the growing demand for memory-hungry AI servers.
– Micron has already sold its full production capacity of high-bandwidth memory (HBM) for the next two years, positioning itself strongly to meet future demand.
– **Datacenter Consolidation**:
– Anticipated greater demand for next-gen datacenter CPUs from Intel and AMD is expected to trigger further server consolidation, enhancing datacenter efficiency and performance.
– Traditional servers are predicted to benefit from this refresh cycle, as more advanced servers will replace multiple older models.
– **AI PCs and Smartphones**:
– There is an increasing trend in AI-enabled PCs and smartphones requiring higher memory capacities, with manufacturers starting to stock up on necessary memory components.
– Ongoing innovations include AI PCs with a minimum of 16GB of DRAM, up from the 12GB average last year.
– **Manufacturing Innovations**:
– Micron’s new 10nm manufacturing processes (1-gamma) is set to commence in 2025, with current advancements on 1-beta DRAM and G8/G9 NAND nodes increasing production volumes.
– The G8 node produces 232-layer NAND, contributing to higher DRAM and NAND contents in both AI and traditional servers.
– **Global Expansion**:
– Despite challenges in China, Micron’s international operations are expanding, with construction progress reported for a factory in Xi’an, India, and a new facility in Idaho.
– The company is also moving ahead in securing permits for a facility in New York state.
These insights into Micron’s operations and strategic outlook emphasize their critical position in the evolving landscape of AI and datacenter technology, signaling opportunities for professionals focused on security and compliance in this rapidly advancing sector.