Micron Technology(US:MU)2025-09-23 21:32Financial Data and Key Metrics Changes - Micron achieved record revenue of $37.4 billion in fiscal 2025, a nearly 50% increase year-over-year, with gross margins expanding by 17 percentage points to 41% [4][19] - Fiscal Q4 revenue was $11.3 billion, up 22% sequentially and 46% year-over-year, with DRAM revenue reaching a record $9 billion, up 69% year-over-year [19][20] - EPS for fiscal 2025 reached $8.29, reflecting a 538% increase compared to the prior year [19] Business Line Data and Key Metrics Changes - The combined revenue from HBM, high-capacity DIMMs, and LP server DRAM reached $10 billion, more than a five-fold increase compared to the prior fiscal year [5] - Cloud Memory Business Unit revenue was $4.5 billion, representing 40% of total company revenue, with gross margins of 59% [21] - Mobile Client Business Unit revenue was $3.8 billion, representing 33% of total company revenue, with gross margins of 36% [22] Market Data and Key Metrics Changes - Data center business accounted for a record 56% of total company revenue, with gross margins of 52% [10] - The calendar 2025 total server units are expected to grow approximately 10%, up from prior expectations of mid-single-digit growth [9] - Smartphone unit shipment expectations remain unchanged at low single-digit percentage range in calendar 2025, with an increasing mix of AI-ready smartphones [15] Company Strategy and Development Direction - Micron is positioned to benefit significantly from AI-driven demand, with a focus on advanced technologies like HBM and 1-gamma DRAM [5][6] - The company plans to continue investing in its Japan production capability and is making progress on its Singapore HBM assembly and test facility [9][8] - Micron aims to leverage its leadership in advanced technologies to maximize ROI and enhance product mix and profitability [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for DRAM and NAND, driven by data center growth and AI applications [10][50] - The company anticipates further DRAM supply tightness in the industry and continued strengthening in NAND market conditions [18] - Management expects fiscal Q1 revenue to be a record $12.5 billion, with gross margins projected at 51.5% [27] Other Important Information - Micron invested $13.8 billion in CapEx in fiscal 2025, with expectations for higher CapEx in fiscal 2026 [18] - The company received a CHIPS Act grant disbursement for its new high-volume manufacturing fab in Idaho, with the first wafer output expected in the second half of calendar 2027 [8] - Micron's inventory levels improved, with ending inventory for fiscal Q4 at $8.4 billion, down $372 million sequentially [24][25] Q&A Session Summary Question: Guidance on revenue split between DRAM and NAND - Micron expects a heavier DRAM mix than NAND in the first quarter, with a projected sequential gross margin increase of 580 basis points [31] Question: Update on HBM total addressable market (TAM) - Micron anticipates the HBM TAM to reach $100 billion by 2030, with HBM bit CAGR expected to outgrow overall DRAM CAGR [34] Question: Transition from HBM3E to HBM4 - HBM4 production is expected to ramp in line with customer demand, with first shipments anticipated in the second quarter of 2026 [40] Question: Gross margin outlook - Micron expects gross margins to improve sequentially, driven by tight DRAM supply and improving NAND business [42] Question: DRAM inventory levels and customer orders - Micron expects DRAM inventories to remain tight, with healthy customer inventory levels and increased lead times for orders [58]