The semiconductor outfit reported fiscal Q1 2025 revenue of $8.71 billion, up 84 per cent year on year and ahead of guidance, pleasing the cocaine nose jobs of Wall Street. Gross margin climbed to 39.5 per cent, up 300 basis points sequentially, while diluted earnings per share hit $1.79.
Micron shares are up 176 per cent so far in 2025, making it the fifth-best performer in the S&P 500 as investors pile into anything with credible AI exposure.
Data centre demand did the most work, with revenue from the segment jumping more than 400 per cent year on year to a record level. For the first time, data centre sales accounted for more than half of Micron’s revenue.
DRAM revenue rose 87 per cent year on year to $6.4 billion, while NAND climbed 82 per cent to $2.2 billion. The compute and networking business alone generated $4.4 billion, also a quarterly record.
The shift marks a sharp turn away from Micron’s historically volatile consumer markets. By 2025, the company exceeded its 2022 Investor Day target of 62 per cent revenue from high-growth, less seasonal segments.
High-bandwidth memory revenue more than doubled sequentially, beating internal expectations and cementing Micron’s role as a key supplier for AI accelerators.
Micron CEO Sanjay Mehrotra confirmed that HBM3E eight-high is designed into Nvidia’s Blackwell B200 and GB200 platforms. The company has begun high-volume shipments to a second major HBM customer and will add a third during the current quarter.
HBM is already sold out for calendar 2025, with pricing locked in through the year. Micron expects to reach HBM market share in line with its overall DRAM share in the second half of 2025.
Micron lifted its 2025 HBM total addressable market forecast to more than $30 billion, up from $25 billion previously. By 2030, the HBM market is expected to exceed $100 billion, outgrowing the entire DRAM industry of 2024.
Elsewhere, data centre SSD revenue hit record levels as enterprise customers gear up for AI infrastructure rollouts. Micron expects to generate several billion dollars from data centre SSDs during fiscal 2025.
Management-guided fiscal Q2 revenue fell to $7.9 billion as consumer customers work through excess inventory, though the company expects conditions to normalise by spring 2025.
The back half of fiscal 2025 is expected to be much stronger, driven by additional HBM customers and a tight supply of leading-edge data centre DRAM. PC and smartphone markets should also lift DRAM content as AI features spread.
Mehrotra said: “Micron is in the strongest competitive position in its history.” He added that the company continues to gain share in high-margin products while holding stable overall bit share in DRAM and NAND.
The transformation away from commodity consumer memory and toward AI infrastructure is now advanced, with visibility locked in and little sign of demand easing.