Core Insights - Micron reported a revenue of $37.4 billion for fiscal year 2025, marking a 49% increase from $25.11 billion in the previous year, with Q4 revenue of $11.32 billion exceeding analyst expectations [1] - The company achieved adjusted earnings per share of $3.03, surpassing estimates of $2.77 by over 9%, and gross margins expanded to 59% in Q4 from 49% in Q4 2024, indicating improved pricing power [1] Financial Performance - Operating cash flows reached $5.73 billion in Q4, showcasing strong cash generation capabilities [2] - Analysts project quarterly DRAM contract price increases of 45% to 55%, with bit demand growth expected in the high teens percentage range for calendar year 2025, driven by data center expansion and AI infrastructure [2] Technological Advancements - Micron is advancing its 1-gamma DRAM technology using extreme ultraviolet lithography, which offers a 30% improvement in bit density and over 20% reduction in power consumption compared to the previous generation [4] - Management indicated that yield improvements on 1-gamma are progressing faster than those achieved on 1-beta, while also developing next-generation NAND technologies to increase capacities and reduce manufacturing costs [4] Strategic Investments - Micron announced a $200 billion investment plan in the U.S. over the next 20 years, including $150 billion for manufacturing and $50 billion for research and development, with the first Idaho fab expected to begin DRAM wafer production in the second half of 2027 [5] - The company is also expanding internationally with a $7 billion HBM fab in Singapore and a facility in Hiroshima, Japan, both targeted to open in 2026 [5] Strategic Decisions - Micron plans to exit the Crucial consumer memory business by February 2026 to focus on the more lucrative AI server chip market, reflecting management's confidence in the AI-driven memory boom [6] - The company will cease supplying server chips to Chinese data centers following a government ban, reallocating resources to regions with lower political risk, demonstrating disciplined capital allocation [7]

Core Viewpoint - Micron Technology shares increased over 4.5% to $196.32 in premarket trading following an upgrade from Morgan Stanley, which changed its rating from "equal-weight" to "overweight" and raised the price target from $160 to $220 [1] Company Summary - Micron Technology's stock performance reflects positive market sentiment after the upgrade by Morgan Stanley [1] - The price target adjustment indicates increased confidence in Micron's future performance and growth potential [1]