00:00what did you make of the report um i i think the the important bogey that people were looking for
00:06was 30 bucks in in eps on the guide and they're they're going to give us a dollar better than
00:14that
00:14so um beyond that you know everything looked good roman uh pricing was up 60 70 percent for
00:22the remnant respectively um i think that's a little bit below what i i thought it might have
00:28been um but also in a world where people are concerned the pricing's moving too much too fast
00:34um with them able to deliver the results without uh you know pricing more than that i think that's
00:41actually ends up being a good bet i am curious when we talk about this idea of sort of how
00:46they
00:46keep this going i mean traditionally i mean you've covered the stock you know traditionally these were
00:50always kind of cyclical names and there's been this idea of this memory fortress that you've
00:55talked about this idea that we've kind of broken that cyclicality certainly in this ai build out
00:59do you get a sense here of just how much further this can go from a time perspective is this
01:05something
01:05that investors can sort of have some confidence in that uh the growth story you know no matter what it
01:11is will will be there uh for more than just another cycle um i i i think at the end
01:18of the day um
01:20the these these stocks will will still be cyclical you just can't get away from the fact that
01:25when you bring on capacity you bring it on large chunks um and at some point you have too much
01:30capacity having said that so micron um in their prepared remarks talks about when some of their new fabs
01:37are coming online and it's late 27 so that that production really fully hits in in 2028 uh up until
01:47that point i mean they're talking about uh their their expectations for for dram bits big growth
01:53being above what they previously anticipated but it's by a couple percent and i think that's that's
01:59the struggle here is there are so much demand yet without these new clean rooms you can only increase
02:05capacity by it by a little bit and as long as that's the case and there's this much demand
02:10um you just see pricing margins remain really really healthy yeah and i do wonder you know you
02:17think about sort of the medium term long term obviously right now it seems like micron and its
02:23peers are the biggest beneficiary of this bottleneck that we're seeing when it comes to memory but you
02:29know you have to think that you know some of the companies that are ponying up a lot of money
02:33spending a
02:33lot of money on memory right now are very much looking for answers on to how to mitigate those costs
02:40i
02:40do wonder you know how you sort of think about those longer term risks yeah i i mean i i
02:48think
02:48that uh the the way that the memory vendors are trying to um at least at least somewhat moderate
02:56that risk through the intermediate term is these longer term contracts um and my belief is that a lot of
03:02large customers have signed three-year four-year five-year contracts um and that the memory vendors
03:09have been willing to give up a bit of future pricing potential uh in order to uh make certain that
03:16they do have a bit of an elongated cycle um i i think that's you know kind of it kind
03:22of ends up
03:23working for for both parties even if customers aren't aren't happy that they're paying for x5x what
03:29they were paying for memory just uh six to nine months ago and so we got the numbers at the
03:34top of
03:34the hour beat and raise across uh many different metrics we're counting down to that earnings call
03:40for micron and matt what will you especially be listening for in light of some of these numbers
03:46um i i i think that they they gave you a lot of it um in their prepared remarks um
03:53so uh sanjay is
03:55going to talk about the fact that over 50 percent of total demand is coming from data centers um i
04:02mean
04:02that tells you how much of this demand is being driven by ai um they told you on capex uh
04:09the
04:09capex is going to go up significantly next year uh in particular construction costs uh will be up by
04:15by 10 billion dollars i'd love to hear a bit more about um kind of how much capacity that can
04:21bring on
04:21if they offer any granularity and then exactly how much more equipment spend uh there'll be because it
04:27it both impacts the equipment makers but also gives us some idea around how quickly some of this
04:32capacity might come on
04:33capacity might come on
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