Micron Technology
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Write up tomorrow. 9.3b and 1.91. The guide was high in the extreme. 2.35-2.60 and 11b. This is quarter to quarter remember. Brilliant result well ahead of the highest expectations. Bodes very well for the related sectors.
They blew it away and guided ‘off the charts’
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Here are Microns results plus highlights from their post earnings conference call. Top line growth , EPS growth driven by margin expansion. Could not have asked for a better report card!
Record Q3 revenue of USD 9.3 billion, up 37% YoY and 15% QoQ, driven by robust demand for DRAM and NAND products.
Earnings per share (EPS) of USD 1.91, surpassing analyst expectations of USD 1.59 (20.13% surprise), up 200% YoY and 22% QoQ.
Gross margin improved to 39%, up 110 basis points QoQ, reflecting optimised pricing and cost management.
Free cash flow reached over USD 1.9 billion, the highest in six years, indicating robust financial health.
Data centre revenue more than doubled YoY, reaching a record level, fuelled by AI-driven demand.
High-bandwidth memory (HBM) revenue grew nearly 50% QoQ, exceeding USD 1 billion, with HBM sold out for calendar 2025.
Technology and Product Leadership:
Record DRAM revenue with the 1-gamma DRAM node (using EUV) offering 20% lower power, 15% better performance, and over 30% improvement in bit density compared to 1-beta DRAM.Gen9 NAND node is the industry’s fastest TLC-based NAND, with disciplined ramp-up to balance supply and demand.
HBM3E offers 20% lower power consumption than competitors’ 8-high solutions, with 50% higher memory capacity and industry-leading performance. HBM4 is expected to ramp in 2026 with over 60% bandwidth increase.
Leadership in low-power (LP) memory for data centres, reducing memory power consumption by over two-thirds compared to D5, with a transition to SOCAMM form factor planned.
Strategic Positioning and Investments:
Well-positioned for AI-driven demand, with CEO Sanjay Mehrotra emphasising Micron’s role in the “transformative era” of AI.Significant investments in U.S. manufacturing and R&D, including a new HBM advanced packaging facility in Singapore, to support future growth.
Achieving share gains in high-margin product categories, strengthening customer relationships.
Key Financial Metrics (Q3 2025) with YoY and QoQ Changes, Plus Q4 2025 Guidance
Revenue: USD 9.3 billion
YoY: +37% (from USD 6.8 billion in Q3 2024)QoQ: +15% (from USD 8.1 billion in Q2 2025)
Earnings Per Share (EPS): USD 1.91
YoY: +200% (from USD 0.64 in Q3 2024)QoQ: +22% (from USD 1.57 in Q2 2025)
Gross Margin: 39%
YoY: Not explicitly stated, but significantly improved from negative or low margins in Q3 2024 due to market recoveryQoQ: +110 basis points (from 37.9% in Q2 2025)
Free Cash Flow: USD 1.9 billion
YoY: Highest in six years, specific YoY change not providedQoQ: Significant increase, specific QoQ change not provided
Q4 2025 Guidance:
Revenue: USD 10.7 billion (±USD 200 million)Gross Margin: 42% (±50 basis points)
EPS: USD 2.51 (±USD 0.10)
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Talking heads don't know what they are talking about.:) The stock is at its multi month high-most likely derivatives out of the money calls-option writers don't need the hedge(the shares) so sell them. No concerns here. It's a cyclical business yes but this cycle is going to last a very long time so I would say it's secular plus other memory segments which have been depressed due to consumer electronics being flat can only get better. The fed PE is about 11X which is dirt cheap imo.
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I see we had another “expert” making noises yesterday that the second half business will be poor for Micron
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every quarter will be better than the last. Micron will double revenue and earnings over the next 4-5 years.
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Today Micron updated the market on its current quarters guidance and the stock is up in pre market trading.
Micron has today revised its projections for revenue, gross margin, operating expenses, and earnings per share (EPS) for the fourth quarter of fiscal 2025, concluding on 28 August 2025. Previously, the Company forecasted revenue of $10.7 billion ± $300 million, non-GAAP gross margins of 42.0% ± 1.0%, and non-GAAP EPS of $2.50 ± $0.15 for the fiscal fourth quarter.The Company has now updated its outlook for the fourth quarter of fiscal 2025, projecting revenue of $11.2 billion ± $100 million, non-GAAP gross margins of 44.5% ± 0.5%, and non-GAAP EPS of $2.85 ± $0.07.
This revised forecast reflects improved pricing, particularly for DRAM, and robust operational performance. Basically HBM sales are surging significantly. And I think they are still being conservative, $3 EPS? Maybe
Curiously it popped on Friday so someone knew this was coming. If todays pre market pop holds this would amount to a 15% gain in the last week.
The market has been wrong about MU consistently -thinking Samsung would dominate, however Samsung has struggled to obtain certification from Nvidia due to heat management and following that issue through the news over time, one could deduce that other players would gain share. That's exactly what happened.
Historical Q revenue. Now > $11B and its PE is actually about 10- Looks good value particularly given the growth rates.
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Great news ….i wonder what that expert will be writing about this week after his views from a few weeks ago ….
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Further, yesterday Micron's Chief Business Officer said the following. Basically they are 'sold out' until Dec 26.
What companies like Micron do is the bulk of the product will now be under contract. Micron will reserve some inventory to also sell on the spot market at potentially, much higher prices and of course they will likely increase yield through efficiency.
HBM4 is a key component in Rubin architecture (Blackwell-Next)
