Micron memory fab. /Courtesy of Micron

Micron, the world's third-largest memory semiconductor corporation, achieved record revenue for the third quarter of the fiscal year 2025 (March to May) benefiting from strong sales of HBM (High Bandwidth Memory), a key component in AI chips. Micron is the first in the memory semiconductor industry to announce quarterly results, serving as a 'barometer' for market conditions. While both revenue and operating profit for the third quarter exceeded market consensus (average securities estimates), Micron also indicated that its projections for the next quarter surpassed analysts' expectations.

Micron stated on the 25th (local time) that its revenue for the third quarter of the fiscal year increased by 37% compared to the same period last year, reaching $9.3 billion (approximately 12.66 trillion won), while operating profit jumped 165% to $2.49 billion (approximately 3.39 trillion won). This performance exceeded market expectations (revenue of $8.85 billion and operating profit of $2.13 billion). Adjusted earnings per share (EPS) rose 208% year-over-year to $1.91, surpassing the consensus of $1.60. As the sales proportion of high-value products led by HBM increased, the total margin for the third quarter improved by about 11 percentage points to 39% compared to the previous year.

Sales of HBM, which drove Micron's performance, grew nearly 50% compared to the previous quarter. Accordingly, DRAM sales also reached a record high of $7.07 billion (approximately 9.62 trillion won). Micron is supplying HBM3E (5th generation HBM) to both major player NVIDIA, which commands 80% of the AI chip market, and the latecomer AMD.

Sanjay Mehrotra, Micron's chief executive officer, noted that 'thanks to the rapid growth in DRAM and HBM, the performance of the data center institutional sector has more than doubled compared to last year, setting a quarterly record.' He also said, 'We expect record revenue and strong free cash flow for the entire fiscal year 2025,' adding that 'to meet the surge in AI memory demand, we will maintain our technological leadership and continue strategic investments.'

Micron's guidance for the fourth quarter of the fiscal year 2025 (June to August) also exceeded market expectations. On this day, Micron projected fourth quarter revenue of $10.7 billion (approximately 14.56 trillion won), earnings per share of $2.50, and a total margin of 42%. Previously, Wall Street had expected Micron's fourth quarter results to be $9.89 billion (approximately 13.46 trillion won) in revenue and earnings per share of $2.27.

Market analysis indicating that the growth trend of AI data centers will continue has supported Micron's optimistic outlook. Global investment bank Bank of America expects the AI data center market to grow from $265 billion (approximately 360 trillion won) this year to $823 billion (approximately 1,120 trillion won) by 2030, stating that 'all countries will focus on investing in AI.' Loop Capital also predicted that the AI chip market will grow to $2 trillion (approximately 2,720 trillion won) by 2028.