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Strong End Market Demand to Drive Micron's (MU) Q4 Earnings

Micron Technology Inc. 's MU fourth-quarter fiscal 2018 results, scheduled to be reported on Sep 20, are expected to benefit from strong demand across its business and product segments.

Expansion of the company's product portfolio to include high-value solutions is expected to drive profits and strengthen relationships with customers.

Click here to see how the company's overall Q4 performance is likely to be.

Solid Product Portfolio to Aid Growth

Micron is likely to witness solid results in the soon-to-be-reported quarter on the back of its strong product mix.

We note that the company has been the key beneficiary of the upswing in DRAM prices and strong demand that was triggered in the second half of calendar-year 2016.

The higher mix of GDDR6 memory, which the company is supplying to NVIDIA NVDA for the GeForce RTX 20-Series cards, is a tailwind for Micron's DRAM pricing in the quarter under review.

The company's cloud server and graphics memory product sales are leading to robust improvement in its computing and networking business unit (CNBU).

The Zacks Consensus Estimate for CNBU revenues for fiscal fourth-quarter 2018 is pegged at $4.27 billion, 49.8% higher than the figure reported in the year-ago period.

The company's mobile solutions continue to be driven by strong demand owing to the rise in memory and storage content per phone. In the last reported quarter, high-value mobile NAND revenues nearly doubled sequentially, backed by solid ramp up of eMMC and eMCP products to multiple smartphone original equipment manufacturers (OEMs).

The Zacks Consensus Estimate for Mobile Business Unit revenues for the fiscal fourth quarter is pegged at $1.47 billion, indicating a year-over-year increase of 24.4%.

Micron continues to bring in new SSD solutions based on lower-cost, next-generation technologies. The company's shipments of 64-layer 3D NAND enterprise SATA SSD and world's first QLC-based SSD are expected to make up for the declining NAND prices.

The Zacks Consensus Estimate for Storage Business Unit revenues is pegged at $1.63 billion, reflecting an increase of 25% from the figure reported in the year-ago quarter.

Micron Technology, Inc. Revenue (TTM)

Micron Technology, Inc. Revenue (TTM) | Micron Technology, Inc. Quote

Zacks Rank and Stocks to Consider

Currently, Micron has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Computer and Technology sector are Radware RDWR and Vishay Intertechnology VSH , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Long-term earnings growth for Radware and Vishay is projected to be 19% and 9%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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