Micron's Booming Quarter, Dividend Boost, and AI Chip Shortage
Durham News Today | 2 Min News | The Daily News Now! · The Daily News Now!
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Micron Technologys Q2 results showcased a remarkable performance, with revenue surging to $23.86 billion, nearly triple last years figure, and gross margins projected to reach 80% next quarter. Despite these impressive numbers, the stock has dropped by 17% since the report. However, the companys dividend boost to $0.15 per share, a 30% increase from last year, offers a small yield with a low payout ratio and strong free cash flow, leaving room for future dividend growth. Wall Street is bullish on Micron, with 26 out of 28 analysts rating it a buy and an average price target of $536.55, implying a 40% upside. The companys heavy spending on expansions, now totaling over $25 billion, positions it well amid the memory chip shortage driven by AI servers and data centers, providing both short-term pricing power and long-term growth opportunities.
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