The News: Micron Investor Day conference was held recently, allowing company leadership, including President and CEO Sanjay Mehrotra, to share an overarching view of Micron’s strategic direction for the future and a long-term financial outlook. Additional sessions included updates from other top executives on the product portfolio, Micron’s market position, and their business innovation model. View the full Investor Day presentation from Micron here.
Micron Investor Day 2022: A Look into the Future of the Market
Analyst take: Micron Investor Day made one thing clear: the company is dedicated to expanding its share of the memory and storage market with new offerings and business models, while also increasing returns for investors. Given that we are in the midst of a transition. From digitizing how we work to new technologies emerging, we are watching the world change.
Memory and storage are at the center of the trends shaping the tech industry and the world at large. We are seeing greater demand for memory and storage to keep up with these changing trends. By 2030, memory and storage will be a $330B opportunity, more than doubling the current market value. The company anticipates continued revenue growth as the market continues to expand. And of course, we know that the critical relationship between memory and compute, which will only be a more significant driving force in this space.
Micron’s Proven Growth and Competitive Position
At Micron Investor Day, executives offered a quick retrospective on how far the company has come. At the last investor day four years ago, the company made commitments about product leadership. Today, it has products in all of the important end markets including:
- Number one market share in DDR5 and world’s fastest graphics memory (GDDR6X)
- Tech leader in consumer and client QLC SSDs as well as world’s first 176L NVMe data center SSD
- Low power tech leader in LPDDR4, LPDDR5/5X and first to market with LPDDR5/5X
- Number one market share in auto and industrial with world’s first auto qualified UFS 3.1 and LPDDR5
Micron also announced a new pricing model to continue the growth and help customers in their own endeavors. With growing economic concerns, Micron’s Forward Pricing Agreements will aim to stabilize price fluctuations that are common in the industry. Customers would sign an agreement with a price curve to limit the steep peaks and low valleys. Currently Micron has a top-10 customer signed on to the model at more than $500 million per year in revenue for a three-year agreement. I was happy to see this move as it should provide greater confidence to Micron’s key customers and help deal with economic uncertainty as we head into a potential demand slowdown due to macroeconomic policy.
It’s clear that Micron is dedicated to delivering growth, reducing volatility, and boosting profitability. If Micron continues to successfully execute its strategies, its position in the market will only continue to grow. In my opinion, Micron is in an excellent position to capture greater market share due to the innovative nature of its planning, the company culture, and the current industry-leading portfolio it has to build on.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum Research as a whole.
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Image Credit: Micron
Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio