Micron Reports Record Q4 Revenue on HBM Demand
Micron Technology has reported impressive results for the fourth quarter of fiscal 2025, with total revenue reaching $11.3 billion, a 46% increase year over year. The company's strong performance was driven by robust demand for high-bandwidth memory (HBM) and limited supply of standard DRAM in the stock market today.
Micron's revenue growth was primarily due to its DRAM segment, which accounted for approximately 80% of total revenue, including HBM. The company expects its adjusted gross margin to expand to a range of 50.5% to 52.5% in the first quarter of fiscal 2026, reflecting its strong financial performance in the stock market today.
Micron's success can be attributed to its ability to ramp up production of HBM chips and its entry into the AI infrastructure market. Major deals, such as OpenAI's agreement with Oracle and Nvidia's investment, have fueled demand for HBM in the stock market today. Additionally, recent billion-dollar contracts signed by companies like Gorilla Technology Group for AI infrastructure projects in Southeast Asia indicate a growing market for advanced memory technologies in the stock market today. This heightened demand could influence Micron's development of next-generation HBM4 chips.
However, Micron has faced criticism for being slow to enter the HBM market. Despite this, HBM revenue reached nearly $2 billion in the fourth quarter, putting it on an $8 billion annual run rate in the stock market today. The company's adjusted gross margin and adjusted operating margin both saw significant year-over-year increases, reaching 46% and 35% respectively in Q4 FY2025.
Micron's strong quarterly results and expanding gross margins reflect the company's successful navigation of the memory market in the stock market today. Its ability to capitalize on the growing demand for HBM, driven by AI infrastructure investments, has positioned it for continued growth. However, the company must remain vigilant to potential oversupply issues in the HBM market to avoid the brutal down cycles experienced in previous memory chip markets in the stock market today.
