Micron's Q4 Revenue Surges 46% on AI Demand, HBM Sales Soar

Micron Technology, a leading global provider of memory and storage solutions, has reported a substantial increase in its fourth-quarter revenue, driven by the surging demand for artificial intelligence (AI) technologies. The company's adjusted revenue for the quarter ending August 28, 2025, reached 113.2 billion dollars, reflecting a 46% year-over-year growth. This figure exceeded the estimated 111.5 billion dollars, underscoring the company's robust performance in the market.

The adjusted earnings per share (EPS) for the quarter stood at 3.03 dollars, a significant increase from the 1.18 dollars reported in the same period last year. This result also surpassed the estimated 2.84 dollars, further highlighting the company's financial strength. The strong performance was largely driven by the cloud and data center segment, which saw a more than twofold increase in sales to 45.4 billion dollars. This segment's success is a testament to the growing demand for high-performance memory and storage solutions in data centers, fueled by the AI boom.

However, the company's core data center business segment experienced a 22% year-over-year decline in sales, totaling 15.7 billion dollars. Other segments, such as the mobile and client business, generated 37.6 billion dollars in revenue, while the automotive and embedded business contributed a smaller amount. In terms of product categories, DRAM (dynamic random-access memory) revenue reached 90 billion dollars, accounting for approximately 79% of total revenue, with a 27% sequential growth. NAND (flash memory) revenue stood at 23 billion dollars, representing about 20% of total revenue, with a 5% sequential increase.

Looking ahead, Micron has provided a bullish outlook for the current fiscal quarter. The company expects revenue to range between 122 billion dollars and 128 billion dollars, surpassing the average analyst estimate of 119.4 billion dollars. Additionally, Micron anticipates an adjusted gross margin of 50.5% to 52.5% for the first fiscal quarter of 2026, significantly higher than the expected 45.9%. This optimistic forecast is underpinned by the company's strategic focus on high-bandwidth memory (HBM) chips, which are in high demand due to the intensifying AI competition.

Micron Technology is one of the world's top three memory chip manufacturers, competing with SK Hynix and Samsung Electronics. The company has been a significant beneficiary of the AI trend, as high-end AI chips, such as those produced by NVIDIA, require an increasing number of HBM chips. HBM is a type of dynamic random-access memory that involves vertically stacking chips to reduce power consumption, making it highly valuable for processing large amounts of data in AI development. The company's CEO highlighted that HBM revenue reached nearly 20 billion dollars in the fourth quarter, indicating an annualized revenue of approximately 80 billion dollars for this product line.

The CEO also noted that Micron expects to finalize deals for the sale of all HBM chips for 2026 in the coming months. The pricing agreement for the HBM3E chips has been largely settled, while discussions regarding the more advanced HBM4 chips are still ongoing. This strategic positioning in the HBM market underscores Micron's commitment to capitalizing on the growing demand for AI technologies and its role as a key supplier of high-performance memory solutions.