Micron Technology(US:MU) Xin Lang Cai Jing·2025-09-24 11:15Core Insights - Micron Technology reported record revenue of $11.32 billion for FY25Q4, a 46% year-over-year increase and a 22% quarter-over-quarter increase, with expectations of $12.5 billion in revenue for FY26Q1, representing a 44% year-over-year growth and an 11% quarter-over-quarter growth [3][19] - The company achieved a GAAP gross margin of 44.7%, up 7 percentage points quarter-over-quarter, and anticipates a gross margin of 50.5% for FY26Q1, a 5.8 percentage point increase [3][21] - GAAP net income reached $3.2 billion, a 70% quarter-over-quarter increase, with expectations of $4.02 billion for FY26Q1 [3][19] Business Segments - DRAM revenue was $9 billion, a 69% year-over-year increase and a 27% quarter-over-quarter increase, accounting for 79% of total revenue [5] - NAND revenue was $2.3 billion, a 5% year-over-year decline, ending a streak of seven consecutive quarters of growth, with a revenue share of 20% [7] - CMBU business, representing cloud computing DRAM and overall data center HBM, generated $4.54 billion in revenue, a 214% year-over-year increase [12] - CDBU business, representing OEM data center DRAM and NAND, saw revenue of $1.58 billion, a 23% year-over-year decline [12] - MCBU business, representing mobile/PC DRAM and NAND, generated $3.76 billion, a 25% year-over-year increase [12] - AEBU business, representing automotive/industrial/consumer DRAM and NAND, achieved $1.44 billion in revenue, a 17% year-over-year increase [12] Market Outlook - The company expects DRAM bit demand to grow in the high-teens percentage for 2025, while NAND bit demand is projected to grow in the low to mid-teens percentage [14][21] - Server shipments are expected to increase by 10% year-over-year in 2025, driven by AI training and inference demand [15] - The automotive and industrial demand has exceeded expectations, with ongoing supply constraints for D4/LP4 products [16] Product Developments - HBM3E supply is largely locked in for 2026, while negotiations for HBM4 are ongoing, with initial samples sent to customers [14] - The company plans to focus on high-margin products, with expectations of continued gross margin improvement [20][21] - The first 1-gamma D5 product has entered mass production, and SSD revenue has reached new highs [16] Valuation Insights - The estimated total addressable market (TAM) for HBM in 2025 is projected at $35 billion, with Micron's market share expected to be around 25%, translating to approximately $8.8 billion in revenue [19] - Micron's current price-to-book (PB) ratio is 3.4x, significantly above its historical average of 1.8x, indicating a shift in valuation from a cyclical to a growth stock [20]