Micron’s Bold Bet On AI Memory

Summary:

• Micron’s data center revenue surged 4X YoY and 40% sequentially in Q1-FY25, contributing 55% of consolidated revenue.
• High Bandwidth Memory (HBM) revenue doubled sequentially, with a TAM projection growing from $16B in CY24 to $30B in CY25.
• Q1-FY25 DRAM revenue reached $6.4B (73% of total), increasing 87% YoY and 20% sequentially.
• NAND revenue dropped 5% sequentially, pressuring gross margins, with market improvements delayed into Q3-FY25 or later.
• FY25 revenue projected at $35.05B (39.58% YoY growth); P/S ratio below 5Y average suggests potential upside.

Investment Thesis

Since the last coverage, Micron Technology (NASDAQ:MU) has underperformed the broader market, with the analysis covering MU’s business performance in Q3-FY24 and DRAM and NAND investments. Today the update focuses on the results of those investments, segment

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