Micron's Earnings and Reddit's IPO | Bloomberg Technology

Micron's Earnings and Reddit's IPO | Bloomberg Technology

Micron Technology

  • Micron boosted its outlook due to increased demand for AI-related products, particularly HBM3E memory used in AI training.
  • The company expects 2025 to be a record year for revenue and profitability, driven by strong demand and profitability in the data center market.
  • Micron is ramping up production of HBM3E and targeting a 23% share of the high-bandwidth memory (HBM) market.
  • The company is making progress with the CHIPS program office for its leading-edge memory manufacturing in the US, aiming to increase its share of world's leading-edge memory production in the US from 2% to over 10% in the next decade.

Apple Lawsuits

  • The US Department of Justice (DOJ) filed a lawsuit against Apple, alleging monopolization of the smartphone market through exclusionary behavior, leading to higher prices and less choice for consumers.
  • The lawsuit seeks to break up Apple's monopoly and restore competition.
  • Apple's shares fell in response to the news, and the company is facing additional antitrust scrutiny from the European Union under the Digital Markets Act.
  • A separate lawsuit filed by the DOJ and 16 attorneys general alleges that Apple exerts its monopoly power to block alternative payment products and services for iPhone users, impacting its services business and overall growth.

Reddit IPO

  • Reddit's IPO was highly anticipated, with shares trading below $70 after a 72% jump on day one.
  • The company is expected to open between $42 and $46 a share, indicating a premium on its $34 IPO pricing.
  • Reddit's unique user data is seen as valuable for companies building large language models, and the company is looking to grow its data licensing business.
  • The transition from an advertising-based model to one that licenses user data and fosters a user economy is viewed positively.

Artificial Intelligence

  • Sequoia Capital Partner Konstantine Buhler emphasized the importance of patience and a long-term perspective in the AI industry, which is still in its early stages.
  • The trend of AI systems working together in networks, with different models collaborating and competing, was highlighted.
  • OpenAI is considered less open now, sparking discussions within the AI community about the level of openness for models.
  • Reddit's successful IPO is attributed to its online community and data advantage, attracting partnerships for AI product training.

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