Micron CEO on AI Driving Record Growth and Future of Memory

Record Quarter Driven by AI

• 🚀 Micron achieved a record quarter with $9.3 billion in revenue, marking a 15% sequential growth.
• 💡 This growth was primarily fueled by AI, with data center revenue doubling year-over-year.
• 💰 High Bandwidth Memory (HBM), a critical enabler for AI systems, saw a 50% sequential growth and is at an annualized run rate of over $6 billion.
• 📈 Micron provided guidance for a massive 15% increase in the current fiscal fourth quarter, targeting $10.7 billion in revenue.

The Role of High Bandwidth Memory (HBM)

• 🧠 HBM is described as the heart of the data revolution powering AI, enabling next-generation memory like HBM4.
• ⚡ HBM4 is designed to address larger and more complex generative AI models, meeting performance and low-power requirements for inference and large language models.
• 🛠️ Micron is already sampling HBM4, with shipments expected to begin next year, and is actively working with customers on their 2026 plans.
• 📊 The company has successfully ramped up manufacturing of this complex memory product, achieving billions of dollars in annual revenue.
• 🔒 Micron is sold out of HBM for calendar year 2025, actively planning with customers for 2026.

Transforming Micron: Beyond Boom and Bust

• 🌱 Micron has transformed from a cyclical business to one of secular growth by executing on its technology roadmap and manufacturing excellence.
• 🌐 AI is driving growth across end markets, including data centers, smartphones, PCs, and automobiles.
• 📱 In smartphones, AI is enabling features like super intelligent assistants, with memory content increasing to 12 GB of DRAM in the latest generations.
• 💻 AI PCs are also contributing to growth, with an expected increase in memory content.

Confidence in AI Adoption

• ⚠️ While AI PCs and smartphones have seen slower penetration than expected, Micron is confident in future growth.
• 🔄 The upcoming Windows 11 upgrade cycle and smartphone refreshes are expected to drive more AI-enabled devices into the market.
• 📈 Micron anticipates significant growth in 2026 with innovation in compelling AI applications.
• 📊 The company projects low single-digit percentage growth for PC sales units and smartphones in calendar year 2025, with a continued mid-teen percentage growth in DRAM bit requirements year-over-year.