What caused Micron's net profit rebound in 2024?

Micron's net profit rebounded in 2024 due to several key factors:

1. **Increased Revenue**: Micron's revenue saw a significant increase, climbing to $5.82 billion in Q2 2024, up from $4.73 billion in the previous quarter and a substantial jump from $3.69 billion in the same period last year. This growth was driven by heightened demand for artificial intelligence (AI) applications and a tight supply environment.
2. **Improved Margins**: The company's gross margin improved dramatically to 18.5% of revenue, a stark contrast to the negative 0.7% reported in the previous quarter and the negative 32.7% from the same period last year. On a non-GAAP basis, the gross margin was even higher at 20.0%. This improvement reflects Micron's enhanced pricing strategies, product mix, and operational efficiencies.
3. **Earnings Turnaround**: Micron reported a GAAP net income of $793 million, or $0.71 per diluted share, which is a substantial recovery from a GAAP net loss of $1.234 billion, or $1.12 per diluted share, in the previous quarter, and a net loss of $2.312 billion, or $2.12 per diluted share, in the same quarter of the previous year.

In summary, Micron's net profit rebounded in 2024 due to increased revenue, improved margins, and earnings turnaround, which were driven by heightened demand for AI applications, a tight supply environment, and the company's strategic initiatives to enhance pricing and operational efficiencies.