Micron Technology ((MU)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Micron Technology’s recent earnings call painted a picture of optimism and strong performance, with the company achieving record-breaking revenues and significant growth in its data center segment. The sentiment was overwhelmingly positive, highlighting strategic investments that position Micron well for future growth, despite some challenges in NAND pricing and tariff-related concerns.
Record-Breaking Revenue and Growth
Micron Technology reported a remarkable fiscal Q3 2025, delivering record revenue of $9.3 billion. This figure represents a 15% sequential increase and a 37% year-over-year growth, underscoring the company’s robust financial health and market positioning.
Data Center Segment Surge
The data center segment experienced a substantial surge, with revenue more than doubling year-over-year. This growth was driven by strong performance in high-bandwidth memory (HBM) and high-capacity DIMMs, as well as low-power server DRAM products, marking a record level for the segment.
Strong Financial Performance
Micron’s financial metrics showed impressive gains, with a gross margin reaching 39%, up 110 basis points sequentially. The non-GAAP EPS was $1.91, reflecting a 22% sequential growth and an over 200% increase year-over-year, highlighting the company’s strong profitability.
Strategic Investment Plans
Micron announced ambitious investment plans, committing approximately $200 billion in the U.S. over the next 20-plus years. This includes $150 billion in manufacturing and $50 billion in research and development, underscoring the company’s commitment to innovation and growth.
HBM and DRAM Technology Advancements
The company made significant advancements in its 1-gamma DRAM technology node, achieving a 30% improvement in bit density, over 20% lower power consumption, and up to 15% higher performance compared to previous technologies, positioning it at the forefront of memory technology.
Record DRAM Revenue
Micron’s DRAM revenue reached a record $7.1 billion, up 51% year-over-year, driven by a nearly 50% sequential increase in HBM revenue, showcasing the strength of its DRAM product offerings.
NAND Revenue Challenges
Despite overall positive performance, Micron faced challenges in its NAND segment, with revenue at $2.2 billion and prices decreasing in the high single-digit percentage range. However, bit shipments increased in the mid-20s percentage range, indicating underlying demand strength.
Customer Inventory and Tariff Concerns
The earnings call also highlighted some concerns regarding customer inventory and tariffs, with certain customers pulling in orders due to tariff-related issues, suggesting potential challenges in managing demand and inventory levels.
Forward-Looking Guidance
Looking ahead, Micron anticipates a robust demand environment, projecting a 15% sequential revenue increase to a record $10.7 billion for fiscal Q4. The company is also investing heavily in U.S. manufacturing and R&D to support AI-driven innovation, with plans to expand its facilities in Idaho and Virginia, signaling confidence in future growth.
In summary, Micron Technology’s earnings call reflected a strong, positive sentiment, with record revenues and strategic investments setting the stage for continued growth. Despite some challenges in the NAND segment and tariff-related concerns, the company’s forward-looking guidance and investment plans highlight its commitment to maintaining its leadership position in the semiconductor industry.