BOISE, Idaho - Micron Technology, Inc. (NASDAQ:MU) has announced the launch of the Micron 9550 SSD, claimed to be the fastest data center solid-state drive (SSD) currently available, specifically designed to enhance artificial intelligence (AI) workload performance.
The new product integrates Micron's proprietary controller, NAND, DRAM, and firmware, aiming to set a new benchmark in performance, power efficiency, and security for data center operations.
The Micron 9550 SSD boasts sequential read speeds of 14.0 GB/s and sequential write speeds of 10.0 GB/s, which, according to the company, is up to 67% faster than similar SSDs from competitors.
Additionally, it offers random reads of 3,300 KIOPS and random writes of 400 KIOPS, with up to 35% and 33% improvements over competitive offerings, respectively. These specifications are particularly beneficial for AI applications such as large language models and graph neural networks, where speed and efficiency are critical.
Micron's Vice President and General Manager of Data Center Storage, Alvaro Toledo, emphasized the drive's exceptional power efficiency, claiming it consumes up to 43% less power in AI workloads compared to similar SSDs. This efficiency is vital for reducing operational costs and maintaining reliable enterprise operations.
The 9550 SSD is engineered to excel in a range of AI workloads, offering significant reductions in both SSD average power and overall system energy usage across various applications, such as GNN training with Big Accelerator Memory (BaM) and LLM training fine-tuning with Microsoft (NASDAQ:MSFT) DeepSpeed.
In addition to its performance capabilities, the Micron 9550 SSD features a vertically integrated architecture that provides advanced security capabilities, including self-encrypting drive (SED) functions and compliance with Security Protocols and Data Models (SPDM 1.2). It supports NVMe 2.0 and Open Compute Project (OCP) 2.0, with OCP 2.5 telemetry for performance and health monitoring.
In other recent news, Micron Technology's third-quarter revenue surpassed estimates, reporting a robust $6.81 billion. The company's fourth-quarter revenue projection, driven mainly by sales of its high-bandwidth memory chips, also met expectations.
Multiple analyst firms such as Citi, KeyBanc, Wells Fargo (NYSE:WFC), and BofA Securities, maintained their buy ratings on Micron despite potential challenges, including the anticipated qualification of Samsung (KS:005930)'s High Bandwidth (NASDAQ:BAND) Memory with NVIDIA (NASDAQ:NVDA) in Q3 2024.
Micron has also announced plans to increase its capital expenditures, with a significant portion aimed at expanding production capacity through the construction of new fabrication plants. CFRA adjusted its fiscal year 2024 earnings per share (EPS) forecast for Micron to $1.17, up from the previous estimate of $1.04.
Analysts from TD Cowen, Piper Sandler, UBS, and Barclays (LON:BARC) have adjusted their price targets for Micron, citing promising revenue projections and robust capital expenditure plans.
InvestingPro Insights
Micron Technology, Inc. (NASDAQ:MU) is making strides with the launch of its Micron 9550 SSD, enhancing its position as a prominent player in the Semiconductors & Semiconductor Equipment industry. As the company focuses on innovation and performance, it's important to consider the financial health and market sentiment surrounding Micron.
InvestingPro Data indicates that Micron holds a market capitalization of $127.83 billion, reflecting its substantial presence in the industry. The company's revenue growth has been impressive, with a quarterly increase of 81.53% as of the last twelve months ending Q3 2024. This growth is a testament to the company's ability to expand its market share and innovate within its product lines.
Despite recent challenges, with the stock having taken a significant hit over the last week, with a price total return of -9.58%, Micron's long-term performance tells a different story. The company has seen a strong return over the last five years, indicating resilience and potential for recovery. Additionally, Micron's dividend yield stands at 0.4%, and it has raised its dividend for three consecutive years, showcasing a commitment to returning value to shareholders.
Two InvestingPro Tips that are particularly pertinent to the article are:
1. Analysts anticipate sales growth in the current year, aligning with the positive reception of the Micron 9550 SSD and its potential to drive further revenue.
2. The company is expected to be profitable this year, which may bolster investor confidence amidst the launch of innovative products like the 9550 SSD.
For readers looking to delve deeper into Micron's financial metrics and gain additional insights, there are 20 more InvestingPro Tips available at https://www.investing.com/pro/MU. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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