Micron Technology has reported a dramatic surge in revenue for its final quarter of fiscal year 2024, fueled by soaring demand for memory chips in artificial intelligence (AI) data centers and automotive applications. The company posted quarterly revenues of $7.75 billion, marking a 93% increase year-over-year, and achieved a net profit of $887 million, a significant turnaround from a $1.4 billion loss in the same period last year. For the full fiscal year, Micron’s revenue reached $25.1 billion, up 62% from the previous year, with a net profit of $778 million compared to a $5.83 billion loss in fiscal 2023.
President and CEO Sanjay Mehrotra highlighted that the company achieved record-high revenues in both NAND and its storage business unit, with datacenter SSD sales exceeding $1 billion in quarterly revenue for the first time. DRAM revenues rose 93% year-over-year to $5.33 billion, while NAND revenues increased 96.3% to $2.4 billion. The compute and networking segment led growth, up 152% year-over-year, followed by storage (up 127%), mobile (up 55%), and embedded (up 36%).
Micron attributes this growth primarily to the rapid expansion of generative AI, which is driving increased demand for high-bandwidth memory (HBM) and solid-state drives (SSDs) in data centers. The company expects the total addressable HBM market to grow from approximately $4 billion in 2023 to over $25 billion by 2025. Mehrotra stated that Micron is entering fiscal 2025 with its strongest competitive positioning ever and forecasts record revenue and improved profitability in the coming year.
The company also noted a recovery in traditional compute and storage markets, substantial gains in datacenter SSD market share, and a fiscal year record for automotive revenue, driven by infotainment and advanced driver-assistance systems (ADAS). Micron expects continued growth in PC and smartphone memory demand, particularly as next-generation AI-enabled devices enter the market.
Despite the strong results, some analysts and investors remain cautious about profit margins and ongoing market volatility, as well as the impact of global economic shifts and geopolitical tensions on the semiconductor sector. Nevertheless, Micron’s strategic focus on AI and network technologies positions it well for sustained growth as the AI revolution continues to reshape the industry.
Sources
Internal sources
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