Sector: Information Technology | Focus: Semiconductors
HQ: Boise, Idaho
Financial Risks
Micron faces significant risks from volatile product pricing (DRAM and NAND), fluctuating gross margins due to manufacturing costs, international operations (geopolitical instability, trade restrictions, currency fluctuations), intense competition, and dependence on key customers. Capacity expansions may not yield expected returns, and government incentives are contingent and subject to change. Litigation and legal proceedings, including patent infringement claims, pose substantial financial risks. Economic downturns and supply chain disruptions also threaten profitability.
Financial Upside
Improved pricing and margins in 2024, driven by increased demand (partially due to AI adoption) and industry supply discipline, led to a significant revenue increase. Micron's investments in new DRAM manufacturing facilities in the US, supported by government incentives, offer potential for future capacity and revenue growth. The company also saw increased NAND and DRAM bit shipments and average selling prices.
