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Micron's DRAM Revenues Hit $28.6B: Can the Momentum Continue?
ZACKS· 2025-09-26 15:16
Key Takeaways MU posted $28.6B DRAM revenues in FY 2025, up 62% year-over-year.HBM chips drove nearly $2B in Q4 sales, putting MU on an $8B annualized run rate from this product line.Gross margins rose to 41% in FY2025, with Q1 fiscal 2026 revenue guided to about $12.5B.Micron Technology (MU) ended its fiscal 2025 with record sales in the Dynamic Random Access Memory (DRAM) business. For fiscal 2025, Micron delivered DRAM revenues of $28.6 billion, which represents a year-over-year increase of 62%. Moreover ...
AMAT's Etch Business Crosses $1B: Can DRAM Momentum Continue?
ZACKS· 2025-08-27 14:36
Core Insights - Applied Materials (AMAT) is experiencing significant growth in its memory business, particularly driven by strong demand for advanced Dynamic Random Access Memory (DRAM) [1][10] - The etch business of Applied Materials achieved over $1 billion in quarterly revenues for the first time, attributed to increased customer investments in high-performance DRAM for AI workloads [1][10] - The company secured new production positions at major DRAM manufacturers for its advanced chemical vapor deposition system and Pioneer dielectric patterning system, aimed at next-generation memory requirements [2] Future Outlook - Customers are preparing to transition to vertical transistor or 4F2 architectures, expected to begin in 2027-2028, with Applied Materials anticipating an opportunity to gain over five points of incremental market share [3] - For fiscal 2025, Applied Materials expects revenues from leading-edge DRAM customers to increase by approximately 50% [3][4] - The company's DRAM portfolio is currently delivering record results, with AI-driven workloads increasing the demand for high-bandwidth, high-performance memory [4] Competitive Landscape - Competitors like Lam Research and ASML Holding are also experiencing strong momentum as memory makers invest in next-generation technologies [5] - Lam Research secured new application wins at a major DRAM manufacturer and recorded its highest DRAM revenues in fiscal 2025, driven by node upgrades and higher demand for High Bandwidth Memory (HBM) [6] - ASML Holding reported strong customer demand for its products, particularly from DRAM and logic customers ramping leading-edge nodes using its EUV systems [7] Valuation and Performance - Applied Materials shares have gained 1.2% year to date, compared to the Electronics - Semiconductors industry's growth of 16.4% [8] - The company trades at a forward price-to-sales ratio of 4.47X, which is lower than the industry average of 8.65X [12] - The Zacks Consensus Estimate for Applied Materials' fiscal 2025 and 2026 earnings implies year-over-year growth of 8.3% and 1.5%, respectively, with recent downward revisions in estimates [15][16]
Micron Earnings Soar, But Weak PC And Phone Demand Keep It Grounded
Benzinga· 2025-06-26 17:46
Core Viewpoint - Bank of America Securities maintains a Neutral rating on Micron Technology despite strong earnings and positive guidance due to muted demand in the PC and phone markets affecting memory chip pricing [1] Financial Performance - Micron reported third-quarter revenue of $9.3 billion, a 16% increase, surpassing the consensus estimate of $8.87 billion [2] - The company achieved adjusted earnings of $1.91 per share, exceeding analyst expectations of $1.60 per share [2] - For the fourth quarter, Micron expects revenue of $10.7 billion, plus or minus $300 million, compared to estimates of $9.88 billion, and anticipates adjusted earnings of $2.50 per share, plus or minus 15 cents, against estimates of $2.01 per share [3] Market Position and Product Outlook - Micron is the last remaining pure-play U.S.-based memory company and the third-largest supplier of memory chips, including DRAM and NAND [4] - The company supports trends in artificial intelligence, 5G, machine learning, and autonomous vehicles, with an improved outlook for DRAM and a ramp in High Bandwidth Memory (HBM) [4] Gross Margin and Inventory Management - Micron expects a fiscal fourth-quarter gross margin of 42.0%, up from the guided 36.5% in the fiscal third quarter, attributed to a strong pricing environment and better product mix [5] - Management anticipates exiting fiscal 2025 with tight DRAM inventories and significantly reduced NAND inventories, aiming for overall company inventory near the target 120-day level [6] AI and HBM Opportunities - Micron's HBM opportunities are expanding, with shipments of HBM3e 12-high to four customers, and a projected market share of 20-25% in the $35 billion Total Addressable Market for calendar 2025, potentially reaching $2.4-2.5 billion by the end of the fiscal first quarter [7] Future Projections - The analyst raised sales estimates for calendar years 2025-2027 by 4-6% and EPS by 13-23%, but reiterated a Neutral rating due to uncertain NAND pricing and ongoing cost headwinds affecting gross margins into calendar 2026 [8] - Projected fourth-quarter sales are now $10.71 billion (previously $9.83 billion) and adjusted EPS of $2.50 (previously $1.82) [8]
LRCX's Memory Strength: Will DRAM and NAND Fuel Future Gains?
ZACKS· 2025-06-24 15:36
Core Insights - Lam Research's memory segment, which includes both DRAM and NVM divisions, is experiencing significant growth, with revenues increasing nearly 24% year over year to $1.31 billion in Q3 FY25 [1][10]. Memory Segment Performance - The NVM division is seeing strong demand due to technology transitions to 256-layer NAND devices, with revenues growing approximately 21% year over year in the third quarter [2]. - The DRAM division's growth is driven by a shift towards high-bandwidth memory (HBM) and increased adoption of DDR5, resulting in a revenue increase of 26.7% year over year in Q3 [3][10]. Innovations and Future Outlook - Lam Research is investing in new technologies, including atomic layer deposition (ALD) innovations and upgrades for DDR5, LPDDR5, and HBM processes, which are gaining traction among customers [4]. - Despite trade restrictions with China, the company maintains consistent revenue growth, with Korea and Taiwan contributing 48% of revenues in Q3, while China accounted for 31% [5]. Competitive Landscape - Lam Research competes directly with Applied Materials and ASML Holdings in critical wafer fabrication stages, with both competitors also experiencing increased demand for their DRAM technologies [6][8]. - ASML's strong product demand is driven by its EUV systems, which are essential for leading-edge nodes, presenting stiff competition for Lam Research as it moves towards EUV lithography [7]. Financial Performance and Valuation - Lam Research's shares have gained 26.8% year to date, outperforming the Zacks Electronics – Semiconductors industry's growth of 6.5% [9]. - The company's forward price-to-earnings ratio stands at 22.99, below the industry's average of 26.82, indicating potential undervaluation [11]. - The Zacks Consensus Estimate for fiscal 2025 earnings has been revised upward by 7.2% to $4 per share, suggesting a year-over-year growth of 33.78% [12].
Is Micron Technology Stock Going to $163? 1 Wall Street Analyst Thinks So.
The Motley Fool· 2025-03-27 13:22
Core Viewpoint - Micron Technology is experiencing strong demand for its memory products, leading to an optimistic outlook and a significant price target increase from analysts [1][2]. Financial Performance - Micron reported revenue of $8.05 billion in the most recent quarter, reflecting a 38% year-over-year increase, primarily driven by high demand for high-bandwidth memory in the data center market [2]. - The company has seen higher selling prices for its Dynamic Random Access Memory (DRAM) and NAND flash memory over the past year [2]. - Despite a sequential decline in NAND product selling prices last quarter, which resulted in a 17% revenue drop quarter over quarter, the overall demand remains strong [4]. Market Position and Future Outlook - Micron is well-positioned to capitalize on the growing demand for advanced memory technology, particularly for artificial intelligence workloads [3]. - Management anticipates record revenue in the fiscal third quarter and is expanding high-bandwidth memory capacity to meet increasing data center demand [5]. - The stock is currently trading at 13 times this year's earnings estimate, below its historical average price-to-earnings ratio of 19.9, suggesting potential for growth [6]. Analyst Ratings and Price Target - Baird analyst Tristan Gerra has maintained an outperform (buy) rating on Micron shares, raising the price target from $130 to $163, indicating a 77% upside from the current share price of $92.13 [1].