Micron Technology(US:MU)2025-09-23 21:32Financial Data and Key Metrics Changes - Micron Technology 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][22] - Fiscal Q4 revenue was $11.3 billion, up 22% sequentially and 46% year-over-year, marking a quarterly record [22] - Earnings per share (EPS) reached $8.29, reflecting a 538% increase compared to the prior year [22] Business Line Data and Key Metrics Changes - DRAM revenue in fiscal Q4 was a record $9 billion, up 69% year-over-year, representing 79% of total revenue [22] - NAND revenue for fiscal Q4 was $2.3 billion, down 5% year-over-year but up 5% sequentially [23] - The Cloud Memory Business Unit (CMBU) generated $4.5 billion, accounting for 40% of total revenue, with gross margins of 59% [24] Market Data and Key Metrics Changes - Data center business reached a record 56% of total company revenue in fiscal 2025, with gross margins of 52% [11] - The total server units in the data center market are expected to grow approximately 10% in calendar 2025, up from previous expectations of mid-single-digit growth [10] - Smartphone unit shipment expectations remain unchanged at low single-digit percentage growth in calendar 2025, with an increasing mix of AI-ready smartphones [17] Company Strategy and Development Direction - Micron is positioned to benefit significantly from AI-driven demand, with a focus on advanced technologies such as HBM, 1-gamma DRAM, and G9 NAND [5][10] - The company plans to continue investing in its production capabilities in Japan and Singapore to meet future memory technology requirements [9][10] - Micron aims to leverage its leadership in advanced technologies to maximize ROI and enhance its product portfolio [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for DRAM and NAND products, driven by AI applications and traditional server growth [35][54] - The company anticipates continued tightness in the DRAM supply environment into calendar 2026, contributing to favorable pricing conditions [20][21] - Management highlighted the importance of AI in driving productivity and competitive positioning, with expectations of significant investments in memory related to AI [7][31] Other Important Information - Micron invested $13.8 billion in capital expenditures in fiscal 2025, with expectations for higher spending in fiscal 2026 [21] - The company received a CHIPS Act grant disbursement for its new manufacturing fab in Idaho, with the first wafer output expected in the second half of calendar 2027 [9] - Micron's 1-gamma DRAM node achieved mature yields 50% faster than the previous generation, demonstrating its technological leadership [8] Q&A Session Summary Question: Guidance on revenue split between DRAM and NAND - Micron expects a heavier DRAM mix in the first quarter, with a projected sequential gross margin increase of 580 basis points driven by pricing and strong execution [34][36] Question: Update on HBM total addressable market (TAM) - Management reiterated the expectation for HBM TAM to reach $100 billion by 2030, with HBM bit CAGR expected to outpace overall DRAM CAGR [38][39] Question: Transition from HBM3E to HBM4 - HBM4 production is set to ramp in line with customer demand, with expectations for increased market share in 2026 [44][45] Question: Gross margin outlook - Management anticipates sequential gross margin improvement in the first half of fiscal 2026, supported by tight DRAM supply and favorable pricing [46][48] Question: DRAM demand sustainability - Strong demand for AI applications is broadening the demand vector for DRAM across various markets, including data centers and smartphones [53][54] Question: CapEx breakdown for fiscal 2026 - Micron's fiscal 2026 CapEx will primarily focus on DRAM, with ongoing investments in construction and facilities [57][59]