Micron Technology, Inc. (MU) Wolfe Research Auto, Auto Tech and Semiconductor Conference Transcript

Micron Technology, Inc. (NASDAQ:MU) Wolfe Research Auto, Auto Tech and Semiconductor Conference February 12, 2025 8:50 AM ET

Company Participants

Mark Murphy - Chief Financial Officer

Conference Call Participants

Chris Caso - Wolfe Research, LLC

Operator

You have joined the meeting as an attendee and will be muted throughout the meeting.

Chris Caso

To speak with us, Mark Murphy, the CFO; and Satya Kumar from Investor Relations. So, gentlemen, thanks both for attending today. We’ve got a lot to talk about. Mark, maybe I’ll turn it over to you for your safe harbor and some opening comments. We can get ready for Q&A.

Mark Murphy

Sure. So, great to be here, Chris, and thank you everybody for joining us today. So, starting with safe harbor, I’ll be making forward-looking statements. Those statements have risks and uncertainties associated with them. I refer you to the risk factors disclosed in our public filings.

So, some opening comments. We have no change to or no update to our second quarter guidance. On the fiscal third quarter, we do expect revenue growth. We now see fiscal third quarter gross margins to be lower by a few 100 basis points sequentially. This is primarily due to a higher mix of consumer-related or consumer-oriented mix in fiscal Q3, lower CQ1 consumer-oriented pricing, and overall or broader NAND industry conditions. Now, as a reminder, our underutilization in NAND will weigh on fiscal third quarter margins as well.

Yeah, we do expect industry conditions to support improve margins beyond fiscal Q3. Yeah, as it relates to the industry, we are seeing improvements in client and smartphone inventory levels. And we expect them to be healthy by the spring. We see in calendar 2025 continued content growth in PC and smartphone, of course, as you can see from recent announcements, we expect continued growth in data center. And then