Micron Technology reported strong quarterly growth driven by surging AI demand, particularly in data centers where high bandwidth memory (HBM) sales doubled year-over-year and are expected to exceed $6 billion annually by 2026. The company’s advanced HBM4 technology and strategic focus on AI across data centers, edge devices, and consumer electronics position it for sustained growth despite market cycles.
Micron Technology delivered an exceptional quarter with $9.3 billion in revenue, marking a 15% sequential growth largely driven by artificial intelligence (AI) demand. The company’s data center revenue doubled year-over-year, fueled by strong sales of high bandwidth memory (HBM), a critical component for AI systems. HBM sales grew 50% sequentially and are on track to reach an annualized run rate exceeding $6 billion, with expectations for continued growth into fiscal year 2026. Additionally, consumer demand showed strong sequential growth, reflecting Micron’s successful execution in technology, product development, and manufacturing.
HBM plays a central role in enabling AI advancements, particularly for generative AI models that require high performance and low power consumption. Micron showcased its next-generation HBM4 product, which features up to 12 layers of stacked memory chips integrated with a logic chip, representing a significant technical achievement. This product is currently in the qualification phase and is expected to begin shipping next year as customers prepare their systems. Micron’s ability to ramp up manufacturing of this complex memory technology positions it as a key player in the AI data revolution.
Demand for HBM is so strong that Micron is already sold out for calendar year 2025 and is actively collaborating with customers on plans for 2026. This robust demand underscores the critical importance of memory in AI applications, as AI systems require increasingly large amounts of data storage and processing power. Micron’s leadership in this space is supported by its advanced technology and manufacturing capabilities, enabling it to meet the growing needs of data centers and edge computing environments.
Micron has transformed from a historically cyclical business into one experiencing secular growth, driven by AI adoption across multiple markets including data centers, smartphones, PCs, and emerging edge devices like automobiles and robotaxis. The company has achieved this by maintaining technology leadership, improving manufacturing excellence, and shifting its product portfolio toward higher-value solutions. While market cycles will continue, Micron’s agility and adaptive strategies position it to sustain growth through these fluctuations.
Regarding AI-enabled PCs and smartphones, adoption has been slower than initially expected, but Micron remains optimistic about growth prospects. The upcoming Windows 11 upgrade cycle and new smartphone releases are expected to drive increased penetration of AI capabilities in these devices. Although unit growth for PCs and smartphones is projected to be in the low single digits for 2025, the memory content per device is increasing significantly, contributing to mid-teens percentage growth in memory demand year-over-year. This trend highlights the expanding role of AI across consumer electronics, further supporting Micron’s growth trajectory.