Micron's Quarterly Beat Backs Up Our Views on These Tech Holdings
We're not in MU, but we like what its earnings results imply for Nvidia, Marvell, Qualcomm, Apple and other Portfolio holdings.
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Last night Micron MU delivered better-than-expected quarterly results, thanks to rising demand for artificial intelligence -- and the results provide much insight into many of the Pro Portfolio's tech holdings.
Notable call outs from Micron included the strength in data center and server markets, both during the reported quarter in guidance for the current quarter. Revenue for the coming up November-ending quarter is expected to land between $8.5 billion -$8.9 billion compared to $7.75 billion for its August quarter and the $8.3 billion market forecast.
While we don't own any MU shares, the quarterly results and outlook support our positions in Nvidia NVDA and Marvell MRVL. Micron said it is “making investments to support artificial intelligence (AI)-driven demand” and that bodes well for our position in Applied Materials AMAT.
Micron on PC and Smartphone Markets
Micron's views on the PC -end market also supports our view on Qualcomm’s QCOM AI on PC opportunity.
“PC unit volumes remain on track to grow in the low-single-digit range for calendar 2024. We expect unit growth to continue in 2025 and accelerate into the second half of calendar 2025, as the PC replacement cycle gathers momentum with the rollout of next-gen-AI PCs, end of support for Windows 10, and the launch of Windows 12,” according to MU.
Based on what it sees in the memory market, Micron expects 2024 smartphone unit volumes to grow in the low- to mid-single-digit with unit growth continuing in 2025. That syncs up with other data points we’ve collected in recent weeks. That also speaks to our shares of Universal Display OLED and Apple AAPL.
Next Up: TSM's September Revenue Report
Now, we're getting ready for the soon-to-be-published September revenue report from Taiwan Semi TSM. The report and what it signals about AI, data center, PC, and smartphone end markets should bring credence to Micron’s end market outlook, making it another positive for the holdings we’ve discussed above.
Our Apple Plan
Apple’s iPhone 16 models got mixed reviews, but we continue to see an extended upgrade cycle playing out as Apple slowly roles out Apple Intelligence capabilities with upcoming iOS software releases. We see the same course for its other hardware products as those software platforms receive the same treatment.
At the time of publication, Pro Portfolio was long AAPL, MRVL, QCOM, NVDA, AMAT and OLED.
