tech
Micron's revenue quadrupled as AI memory demand pushes gross margins above 81 percent
Micron Q3 revenue hit $41bn, quadrupling year-over-year on surging AI memory demand, with gross margins above 81 percent and Q4 guidance of $50bn.
TL;DR
- Micron's fiscal third-quarter revenue reached nearly $42 billion, quadrupling year-over-year.
- Demand for high-bandwidth memory (HBM) is the primary driver of this revenue surge.
- Micron's gross margins hit over 81 percent, a significant increase from previous periods.
- The company can only fulfill between 50% and 66% of customer demand for HBM.
- Micron's entire 2026 HBM supply is sold out, with $22 billion in customer cash deposits received.
- Next-generation HBM4 chips are ramping twice as fast as the previous generation, with revenue exceeding $1 billion.
- Micron projected fiscal fourth-quarter revenue of approximately $50 billion, beating analyst estimates.
- The company raised its full-year capital expenditure forecast to over $25 billion to expand production capacity.
- Micron's market capitalization crossed $1 trillion, reflecting the AI-driven memory supercycle.
- The total addressable market for HBM is expected to grow to around $100 billion by 2028.
- Micron plans to return 100% of excess free cash flow to shareholders.