Wedbush’s Matt Bryson reacts to Micron’s quarterly results

ITS LATEST ASTRO MODEL OVER SAFETY CONCERNS. MIKE? >> YEAH, I MEAN, OBVIOUSLY THE PROGRESS IS JUST KEEPS RACING AHEAD. MACKENZIE THANK YOU VERY MUCH. MICRON EARNINGS JUST OUT THE STOCK SLIGHTLY HIGHER AT THE MOMENT AFTER BEATING ON THE TOP. AND THE BOTTOM LINES THE COMPANY SAYING GUIDANCE FOR REVENUE AND EPS BETTER THAN EXPECTED FOR THE COMING QUARTER. BUT GROSS MARGINS FOR THE FIRST QUARTER COULD BE LOWER THAN ANTICIPATED. JOINING ME NOW IS MATT BRYSON FROM WEDBUSH. SO MATT OBVIOUSLY KIND OF A HIGH BAR. YOU KNOW, EVEN AS THE STOCK HAS KIND OF BOUNCED AROUND THE LAST FEW MONTHS, EARNINGS ESTIMATES AND EXPECTATIONS HAVE BEEN STRONG. WHAT'S MOST RELEVANT FROM THAT FROM THE REPORT. >> I WOULD LOOK AT THE GUIDANCE AROUND EARNINGS. SO THEY'RE LOOKING AT NORTH OF $38. I THINK THAT'S ROUGHLY IN LINE WITH WHERE BUY SIDE HAD BEEN. I'VE HEARD ANYWHERE FROM 36 TO TO 40. SO WE'RE RIGHT IN THE MIDDLE OF THAT RANGE. I THINK THAT'S THE THE MOST RELEVANT NUMBER FROM MY PERSPECTIVE. >> JUST THE SLIGHTEST DOWNTICK IN ANTICIPATED GROSS MARGIN FOR THE FOR THE CURRENT QUARTER. I GUESS THAT'S JUST SOMETHING THAT IS GOING TO KEEP IN THE AIR SOME OF THESE QUESTIONS ABOUT EXACTLY HOW LONG THE PRICING POWER, THE SUPPLY CONSTRAINTS, AND THE DEMAND STORY ARE GOING TO CARRY THROUGH. >> YEAH, I MEAN, IT REALLY DEPENDS UPON THE DETAILS THERE. SO FOR INSTANCE, IF THE DOWNTICK IS TIED TO THEM SHIPPING MORE HIGH, HIGH BANDWIDTH MEMORY, SO SUPPORTING AI, I DON'T THINK THAT'S A THAT'S A NEGATIVE. ALL OF MY PRICE CHECKS HAVE SUGGESTED THAT PRICING IS STILL MOVING UP. IT'S A LITTLE BIT SLOWER PACE. SO I THINK THE Y DEPENDS A LOT HERE. >> SURE. AND THEN YOU KNOW, AS MUCH AS THE FORWARD LOOKING EARNINGS EXPECTATIONS KEEP GOING HIGHER. OBVIOUSLY ON THAT BASIS THE STOCK CONTINUES TO LOOK CHEAPER THAN IT HAS BEEN RECENTLY. I GUESS THE QUESTION IS ARE WE INCHING CLOSER TO THE POINT WHEN THE MARKET'S GOING TO BE CONCERNED ABOUT WHATEVER CAPACITY ADDITIONS ARE COMING IN THE OUT YEARS AND WHETHER, IN FACT, WE'RE GOING TO SEE A LITTLE BIT OF A STUTTER STEP IN THE DATA CENTER BUILD OUT. AND THE MACRO DRIVERS OF ALL THIS DEMAND. >> YEAH. SO I THINK THERE ARE CERTAINLY CONCERNS AROUND SUPPLY, RIGHT? SUPPLY IS ALWAYS WITH NC CYCLES. IT'S LATE 2728 THAT WE GET THAT WE GET THAT SUPPLY GOING ON OR COMING ON. THE THING TO REMEMBER THOUGH, IS THAT WE'RE GETTING HUGE ESTIMATES FOR ACCELERATOR BUILDS AND CPU BUILDS. SO WHEN YOU THINK ABOUT BROADCOM, FOR INSTANCE, TALKING ABOUT DEMAND DOUBLING AND THEN DOUBLING AGAIN, AND THE AMOUNT OF MEMORY FOR EACH OF THESE COMPUTE CHIPS OR ACCELERATORS IS THE SAME. AND THAT BIG GROWTH IS NOWHERE CLOSE TO THAT. SO AS LONG AS YOU HAVE THIS STRENGTH IN AI, EVEN IF YOU GET MORE SUPPLY COMING ON, IT'S REALLY UNCLEAR TO ME THAT SUPPLY CATCHES DEMAND. >> AND THEN IN TERMS OF CAPITAL RETURN, I KNOW THAT MAYBE THERE WAS SOME EXPECTATIONS THAT MICRON MIGHT UPDATE HOW MUCH IT'S GOING TO SHARE OF THIS BOUNTY THAT IT'S PULLING IN IN FREE CASH FLOW. >> YEAH. THERE. SO I THINK THE PREFERRED WAY OF RETURNING CAPITAL TO SHAREHOLDERS IS GOING TO BE BUYBACK BUYBACKS. AND THEY'RE THEY'RE LOCKED UP UNTIL DECEMBER 9TH BECAUSE OF THE CHIPS ACT FUNDING THAT THEY GOT. SO I'M NOT SURE THAT WE GET A TON MORE ON THIS CALL,