Micron Shortens Its Product Cadence To Align With Grace Blackwell (Rating Upgrade)

Michael Del Monte
4.99K Followers
(10min)

Summary

  • Micron is turning production to HBM3E 12-high chips for Nvidia's GB300 GPU in 2h25 and anticipating significant revenue growth on a per-chip basis.
  • Q2'25 saw substantial growth in HBM and DRAM modules while NAND lagged due to customer inventory digestion.
  • Management is taking steps to work down inventory by curtailing NAND utilization in Q3'25. This may create an uplift in free cash flow in the coming quarters.
  • Micron is positioned for durable growth, supported by enterprise AI adoption, AI-enabled robotics, and autonomous vehicle market prospects.
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Micron (NASDAQ:MU) is positioning itself for the next growth cycle as management focuses assets on higher-yield chips, particularly in transitioning from HBM3E 8-high to HBM3E 12-high as part of the next generation Nvidia GB300 GPU. As part of its partnership with

This article was written by

4.99K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Investment recommendations are built upon the entirety of the investment ecosystem rather than considering a company independently.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MU, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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