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Micron Technology, Inc.
CEO : Mr. Sanjay Mehrotra

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2025 Q1	84.3% YoY	-292.7%	-250.0%	2024-12-18

Manish Bhatia says,

8-High Ramp Progress and Scalability

• The company is pleased with the progress of the 8-high ramp, which has exceeded expectations in the last quarter.
• The process choices have proven scalable, allowing for a transition to the 12-high ramp.
• This transition is expected to become increasingly important through calendar year 2025.
• The scalable process is a positive indicator for future capacity expansion.

Capacity Expansion Plans

• The company is gradually increasing capacity by installing and qualifying new equipment.
• This expansion is a multi-dimensional process, aiming for consistent week-over-week capacity growth.
• Starting from a low point in HBM3 and limited HBM2E production, capacity is gradually increasing into the next year.
• Capacity expansion is crucial for achieving long-term goals and sustaining growth.

12-High Transition and Revenue Growth

• The transition to 12-high is expected to comprise a larger portion of the product mix through the year.
• Solid revenue growth is anticipated as the transition progresses quarter-over-quarter through fiscal 2025.
• Expectations are set for continued growth through calendar year 2025.
• Revenue growth is closely tied to the successful transition to 12-high production.

Production and Product Mix

• Initially, there was no product in HBM3 and limited production in HBM2E, indicating a significant ramp-up opportunity.
• The product mix is expected to evolve with the 12-high taking on a larger role.
• This evolution is part of the strategic plan to enhance product offerings and meet market demand.
• Diversifying and ramping up product offerings is key to maintaining competitive advantage.

Sumit Sadana says,

Data Center Revenue Trajectory

• The data center revenue trajectory remains robust, despite experiencing some near-term moderation in SSD growth.
• This robust trajectory is expected to underpin performance through fiscal and calendar 2025.
• Continued growth in data center revenue is a significant positive factor for the company’s financial outlook.

HBM and DRAM Growth

• The High Bandwidth Memory (HBM) growth continues on a positive trajectory, contributing to the company’s strong performance.
• Overall DRAM results remain robust, providing stability to margin expectations.
• The mix improvement and robust DRAM results are essential in maintaining stable margins despite market challenges.

Market Challenges and Headwinds

• Near-term market environment issues and seasonality are presenting challenges.
• NAND-related challenges are identified as specific headwinds affecting the company.
• Despite these challenges, the company is managing to maintain stable margins with only a 100 basis point delta from the previous quarter.

Pricing Guidance and Strategy

• The company does not provide specific guidance on pricing due to competitive reasons.
• Management believes that provided data points are sufficient for modeling purposes.
• The focus remains on trajectory and strategic improvement in product mix rather than specific pricing forecasts.

The combination of robust data center and DRAM growth, alongside effective management of challenges and headwinds, positions the company well for future performance throughout fiscal and calendar 2025.

Q & A sessions,

Data Center Innovations and Growth

• Micron is pioneering the use of LP in data centers, currently leading in its deployment worldwide.
• Micron has achieved significant innovations in memory solutions for data centers, particularly in RAS environments.
• The introduction of high-capacity DIMMs, such as mono die-based 128 GB DIMMs, positions Micron advantageously in the market.
• The data center market, particularly in LP and high-capacity DIMMs, is projected to generate multi-billion dollar revenue.
• Data center revenue now accounts for more than 50% of Micron’s total revenue, with 40% sequential growth and 400% YoY growth in F Q1.

PC Market Outlook and Impact

• The PC refresh cycle anticipated for 2024 has been delayed to 2025, affecting unit shipment forecasts.
• PC shipments in 2024 are now expected to be flat year-over-year, impacting the near-term outlook.
• Despite modest unit growth, enhanced memory content in future PCs is expected to be a positive driver in 2025.
• Inventory levels at end customers are expected to improve by spring 2024, leading to resumed shipment growth.

Inventory and Supply Chain Dynamics

• Customer inventories are consuming DRAM and NAND faster than purchasing from Micron and the industry.
• NAND supply is highlighted as a key issue, with measures underway to align supply with demand.
• By spring 2024, inventory levels are expected to be healthier, improving shipment growth in the fiscal year’s second half.
• HBM supply remains tight, affecting non-HBM availability, but demand trajectory in data centers remains robust.

Consumer-Oriented Segment Challenges

• Most impacts are confined to consumer-oriented segments, with a temporary moderation in data center SSD demand.
• Data center SSD demand is expected to recover in the following months after a temporary slump.
• Overall demand trajectory for the data center remains strong, with ongoing robust growth projections through fiscal and calendar 2025.

Financial Projections and Guidance

Segment	Revenue Outlook	Growth Rate
Data Center	Multi-Billions USD	40% Sequential, 400% YoY in F Q1
PC Shipments (2024)	Flat YoY	Delayed to 2025