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nvestors especially when you consider the company's latest third quarter performance in terms of Revenue and profitability also the company made great progress in terms of technology and operations and the companies benefiting from investments from the US government on manufacturing expansion on semiconductors so I'll go a little bit deeper on each of those three categories aform mentioned and why that's get into n the company's fiscal third quarter they delivered growth in Revenue gross profit margin and earnings per share all above the high end of their guidance now the management team gave investors a forecast of what they thought they were going to deliver in terms of Revenue gross profit earnings per share for the third quarter and across all those critical metrics the company did better than expected they beat the higher end of their expectations in the quarter now usually management teams will tell you a range of where they think these critical metrics will fall in the quarters so they have a range and what Micron did is if you look at their low to high end of the range they beat even the higher end of their range so things came much better than they thought were the best case scenarios in the quarter so that was great news for micron investors partly driving that was the robust price increases and Supply demand conditions in the market so because demand increased by way more than Supply increased Micron was able to increase prices on its products and customers purchased at these higher prices and that drove better profitability better profit margin for micron in the quarter one of the areas of great growth for micron was in data centers now the company said in data center rapidly growing AI demand enabled us to grow Revenue by over 50% on a sequential basis so Micron joins the list of several companies including super micro computer Dell of course the obious Nvidia Etc that are benefiting from the growth in data center investment Amazon Microsoft orgo Facebook meta platforms are all investing in growth of data centers to support growth in their own business and that's requiring investments in memory in CPUs and gpus and so all of that supply chain associated with the data center are really thriving now and Micon now joins that list of companies that are thriving as a result of investments in data centers they continued to say that their mix of data center revenues on track to reach record levels in 2024 and to grow significantly from there in 2025 robust AI driven demand for data center products is causing tightness on our Leading Edge nodes and they expect price increases to continue throughout 2024 despite only steady near-term demand for PCs and smartphones so their bigger categories are PCS and smartphones but the data center is on track to grow by so much that it's going to offset the flat ish demand for PCs and smartphones in 2024 further the company expects this growth in data center not only for just 2024 but in 2025 as well and that's going to offset the tightness in PCS and smartphones now PCS are also expected to grow in 2025 so the company given those factors says that they can deliver substantial Revenue records in 2025 with significantly improved profitability underpinned by their portfolio shift to higher margin products so not only is revenue going to expand in 2025 record Revenue but also stronger profitability in 2025 that's great news for micron stock investors which I'll remind everyone I have Micron rated as a buy and I have Micron on my list of top stocks to buy right now in 2024 and Beyond and this is partly why I feel that's the case supply and demand in the market is working in micron's favor and the company is improving operations lowering Prof lowering costs while increasing prices that's a great combination and I like those for micron stock investors now moving on to technology and operations the company's latest one y one gamma dram pilot produ uction which uses extreme ultra violet lithography is progressing well and they are on track for volume production in calendar year 2025 remember Micron is one of the few companies that employ asml euv technology and that's what you're seeing here this is The Cutting Edge right this is the best of the best technology you can employ for production and they're expanding here in 20 2025 so they now expect their fiscal 2024 dram front end cost reductions excluding the latest hbm to be in the high single digigit percentage range and they expect 2024 nand which is storage right dam is memory nand is storage front end cost reductions to be in the low double digit percentage range so big cost reductions High single digit digits for Dam and low double digits for storage and as I highlighted earlier those improvements in costs are leading to better profitability for micron so not only is demand increasing but simultaneously they're working in cost reductions isn't that what you'd love to hear as an investor demand is increasing driven by several factors including artificial intelligence simultaneously they're improving operations and cutting costs and that factor is leading to Big increases in profitability and that certainly is great news for micron stock investors and you can more understand why I rid Micron so highly on my list of stocks to buy and lastly Micron is benefiting from the US government's investment to train onshore semiconductors the US government provided Micron 6.1 billion dollars in Grants under the chips and science act this will help support their Leading Edge memory manufacturing expansions in Idaho and New York and even though you might think that Manufacturing in the US would be more expensive for micron the company saying that they expect to achieve cost competitive Leading Edge Manufacturing in the US when these projects reach efficient manufacturing scale so even though they're going to be in the US and not in Taiwan that's still going to be able to be cost competitive for micron when at scale so they're getting support from the government to build Manufacturing in the US that's great news they're getting $6.1 billion but also this helps reduce geopolitical risk from manufacturing concentration in Taiwan so great news here for Micron stock investors on several fronts revenue is expanding profits are expanding because of cost cutting simultaneously they're able to invest in their future diversify away from their manufacturing concentration and get $6 billion to help facilitate that diversification so really great news for Myron stock
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