Semiconductor Stocks
Micron Q3: “Multiple Billions” In HBM Revenue Next Year
Micron beat and raised in Q3 as strong high-bandwidth memory (HBM) demand and price increases drove revenue growth of 81.5% in the quarter. Management reiterated their forecast for several hundred million in HBM revenue in fiscal 2024, with Q3 generating north of $100 million in HBM revenue in the quarter. Micron also offered its first look at fiscal 2025 for HBM, seeing “multiple billions” of HBM revenue next fiscal year, implying growth may come in more than ten-fold next year for this portion of its DRAM business. CEO Sanjay Mehrotra said that Micron is “gaining share in high-margin products like High Bandwidth Memory, and our data center SSD revenue hit a record high.” He added that Micron is “excited about the expanding AI-driven opportunities ahead, and are well positioned to deliver a substantial revenue record in fiscal 2025.” Micron also mentioned that HBM is sold out for calendar 2025 with pricing already contracted for. There are some drawbacks to this as the market may interpret it as a lack of potential for upside. The pricing is not being disclosed, only that HBM is sold out. This will probably be the situation into the foreseeable future due to low yields from HBM.
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