Micron continues to invest in capacity expansion, with estimated capital expenditures of approximately $14 billion in 2025. The company is receiving up to $6.1 billion in direct funding pursuant to the CHIPS Act for planned fabs in Idaho and New York.

Micron broke ground on an HBM advanced packaging facility in Singapore in January 2025, to expand total advanced packaging capacity beginning in calendar 2027. This investment will help meet the growing demand for HBM products.

The company continues to prudently manage its NAND supply, including levels of capital investment, pace of ramp of new technology node, and fab utilization consistent with demand growth. This indicates a focus on balancing supply and demand in the NAND market.

Research and development expenses increased 8% YoY to $898 million for the quarter, indicating a continued investment in innovation and technology leadership. The company is focused on developing new products and process technologies.

Stock-based compensation expense increased YoY, indicating increased employee compensation. This could be a result of increased hiring and/or increased stock option grants.

CNBU revenue increased 4% QoQ, primarily due to higher sales of HBM products, which increased more than 50%. This demonstrates management's ability to capitalize on growing demand for high-performance memory solutions.

The May 2023 decision by the Cyberspace Administration of China (CAC) is impacting revenue from companies headquartered in mainland China and Hong Kong. This poses a risk to Micron's operations and revenue.

Micron is involved in several ongoing legal proceedings, including patent infringement lawsuits. These lawsuits could result in significant costs and the diversion of management time and resources.

Micron's operations are dependent on key suppliers, and potential supply chain disruptions could limit the company's ability to manufacture products. This is a recurring risk factor for the company.

Micron faces intense competition from a number of companies, including Kioxia, Samsung, and SK hynix. This competition could lead to aggressive pricing and reduced profitability.

Micron and its competitors are increasing supply to address growing market demands, which could result in significant increases in worldwide supply and downward pressure on prices. This poses a risk to Micron's profitability.

Rapid technological change in the markets Micron serves could contribute to shortened product life cycles and a decline in average selling prices of its products. This requires continuous innovation and investment in R&D.

Improvements in consolidated gross margins for the second quarter and first six months of 2025 as compared to corresponding periods of 2024, were primarily due to manufacturing cost reductions for NAND.

A significant portion of Micron's manufacturing costs are fixed and do not vary proportionally with changes in production output. As a result, lower utilization, lower wafer output, and corresponding increases in per gigabit manufacturing costs could result in higher inventory carrying costs.

Micron's operations are dependent on a reliable and uninterrupted supply of electrical power, gas, and water to its manufacturing facilities. Any power shortages, capacity constraints, prolonged outages, or significant or unexpected increases in the cost of power could have a material adverse effect on our business.

Micron is developing new products, including system-level memory and storage products and solutions, which complement its traditional products or leverage their underlying design or process technology. This requires continuous investment in R&D.

Micron's key semiconductor memory and storage technologies face technological barriers to continue to meet long-term customer needs. These barriers include achieving acceptable yields and quality for HBM products with their multiple chip layers.

Micron's operations are dependent on its ability to procure advanced semiconductor manufacturing equipment that enables the transition to lower cost manufacturing processes. For certain key types of equipment, including photolithography tools, Micron is sometimes dependent on a single supplier.

Micron estimates capital expenditures in 2025 for property, plant, and equipment, net of proceeds from government incentives, to be approximately $14 billion. This represents a significant investment in future growth.

Our Board of Directors has authorized the discretionary repurchase of up to $10 billion of our outstanding common stock. As of February 27, 2025, $2.81 billion of the authorization remained available for the repurchase of our common stock.

Micron has adopted a dividend policy pursuant to which it currently pays a cash dividend on its common shares on a quarterly basis. The declaration and payment of any dividend is subject to the approval of our Board of Directors and our dividend may be discontinued or reduced at any time.

Micron and many of its customers have adopted responsible sourcing programs that require Micron to meet certain sustainability, governance, or other criteria, and to periodically report on its performance against these requirements.

There has been an increased focus from stakeholders on sustainability and governance matters, including greenhouse gas emissions and climate-related risks, carbon-free electricity, water stewardship, waste management, inclusion, responsible sourcing and supply chain, and human rights.

Micron has entered into several virtual power purchase agreements to obtain renewable energy credits at a cost that will vary based on future prices for electrical power.

DRAM revenue declined slightly from the prior quarter primarily due to customer actions in consumer-oriented markets to reduce inventories, which was partially offset by continued strength in data center markets, particularly for HBM products.

NAND revenue declined due to lower storage growth by data center customers after several quarters of strong investments and pricing pressure in consumer-oriented markets as customers worked to reduce inventories to align with demand in their end markets.

Following the May 2023 decision of its cybersecurity review of our products sold in China, the CAC determined that critical information infrastructure operators in China may not purchase Micron products, impacting our revenue with companies headquartered in mainland China and Hong Kong.