Technology
Semiconductors
$113.65B
48K
Micron Technology, Inc. is a leading provider of memory and storage solutions, primarily focusing on DRAM, NAND, and NOR technologies. The company's main revenue streams come from sales to the data center, mobile, embedded, and PC markets, leveraging its technological leadership and manufacturing excellence. Micron's competitive advantages include its global manufacturing network and proprietary technology, enabling it to serve a diverse customer base across various sectors.
Key insights and themes extracted from this filing
Micron reported total revenue of $37,378 million in fiscal 2025, a 49% increase from $25,111 million in 2024. Net income saw a substantial turnaround, reaching $8,539 million in 2025 compared to $778 million in 2024 and a net loss of $(5,833) million in 2023, driven by strong DRAM and NAND sales.
The consolidated gross margin percentage improved significantly to 40% in 2025, up from 22% in 2024 and a negative 9% in 2023. This recovery was primarily due to increases in average selling prices, a higher mix of profitable products like HBM, and manufacturing cost reductions across both DRAM and NAND segments.
Net cash provided by operating activities more than doubled to $17,525 million in 2025, a significant increase from $8,507 million in 2024 and $1,559 million in 2023. This surge in cash flow was primarily attributable to higher net income, favorable changes in receivables and payables, and a decrease in inventory.
CMBU revenue soared by 257% in 2025 to $13,524 million, primarily due to increased DRAM bit shipments and average selling prices, driven by accelerating AI demand in cloud server markets for HBM, high-capacity DIMMs, and low-power server DRAM. This reflects a successful strategic shift of DRAM supply to meet high-value data center demand.
Micron announced plans to invest in leading-edge memory manufacturing fabs in Boise, Idaho, and Clay, New York, with construction for the first Idaho fab beginning in October 2023 and first DRAM wafer output projected for H2 calendar 2027. Total CHIPS Act grants amount to up to $6.4 billion, supporting US manufacturing expansion and modernization projects, including advanced HBM packaging capabilities.
In 2025, the company began shipping the industry’s first 1γ production node (DRAM with EUV lithography) and delivered samples of HBM4 36GB 12-high. New products also include G9 QLC-based NAND in client SSDs with Adaptive Write Technology and automotive LPDDR5X DRAM, signaling a strong focus on advanced solutions for AI, mobile, and automotive markets.
Management successfully navigated challenging industry conditions, transforming a $(5,745) million operating loss in 2023 to a $9,770 million operating income in 2025. This turnaround was achieved through strategic product mix optimization, manufacturing cost reductions, and a pivot to high-growth segments.
Micron maintains a robust cybersecurity program aligned with NIST-CSF, conducting regular risk assessments and implementing safeguards. The Chief Security Officer and Chief Information Officer provide quarterly briefings to the Security Committee, demonstrating active management and board oversight of cybersecurity risks.
The company emphasizes finding and retaining skilled talent in a competitive industry through continuous learning, mentoring, and internal certifications. Investments in AI tools training for employees aim to unlock human potential and labor productivity, supporting innovation and future growth.
The May 2023 CAC decision in China, prohibiting critical information infrastructure operators from purchasing Micron products, continues to impact revenue in mainland China and Hong Kong. Additionally, new US export controls and the April 2025 Section 232 investigation into semiconductor imports highlight the increasing risk of trade barriers and tariffs that could limit sales and increase costs.
The semiconductor memory market is characterized by significant ASP volatility, with DRAM and NAND prices experiencing wide swings in recent years. The risk of industry oversupply, driven by competitors' increased capital expenditures and potential shifts in HBM capacity to conventional DRAM, could lead to future price declines and adversely affect gross margins.
Micron's operations are highly dependent on a limited number of suppliers for critical materials and equipment, leading to potential shortages, increased lead times, and higher costs. Inflationary pressures on materials, supplies, and services, coupled with geopolitical disruptions, continue to pose a material adverse effect on business and results of operations.
Micron's common stock outperformed both the S&P 500 Composite Index and the Philadelphia Semiconductor Index (SOX) in 2025, with its stock price increasing from $216 in 2024 to $268 in 2025, demonstrating strong market confidence and competitive standing.
The company is well-positioned with its industry-leading HBM3E technology and HBM4 on schedule for volume production in calendar 2026. This focus on high-bandwidth memory and other advanced solutions like DDR5 and LPDDR5X for AI and data-intensive applications provides a significant competitive advantage.
Micron faces intense competition from major players such as Samsung, SK hynix, and Kioxia, as well as Chinese state-backed entities like CXMT and YMTC, which may benefit from aggressive pricing and government assistance. The CAC decision in China further restricts Micron's ability to compete effectively in a key market.
Micron is continuously enhancing its production processes, increasing bits per wafer, and transitioning to higher density products. In 2025, the company began shipping the industry’s first 1γ production node incorporating EUV lithography and achieved volume production of Micron G9 NAND, driving cost reductions and performance improvements.
NAND gross margins improved in 2025 primarily due to manufacturing cost reductions. This indicates effective management of production expenses, despite increasing complexity of product portfolio and manufacturing processes.
Operations are dependent on a limited number of suppliers for critical materials and advanced semiconductor manufacturing equipment. Difficulties in obtaining these resources, coupled with potential power shortages and disruptions in global manufacturing facilities, could impede production ramps and increase overall costs.
Micron began shipping the industry’s first 1γ production node in 2025, its first DRAM node incorporating EUV lithography, and commenced volume production of Micron G9 NAND in 2024. These advancements are crucial for continuous improvement in performance and cost structure.
The company is well-positioned with its HBM3E technology and is on schedule for HBM4 volume production in calendar 2026. In 2025, Micron delivered samples of HBM4 36GB 12-high to multiple key customers, demonstrating its commitment to powering next-generation AI platforms.
Research and development expenses increased by 11% in 2025 to $3,798 million, reflecting continued investment in new product and process technology development. This includes specific investments in AI capabilities and new machine learning platforms, crucial for maintaining technological leadership.
Expenditures for property, plant, and equipment totaled $15,857 million in 2025, significantly up from $8,386 million in 2024. This includes major investments in new leading-edge memory manufacturing fabs in Idaho and New York, and modernization projects in Manassas, Virginia, supported by government incentives.
Micron received $2,005 million in proceeds from government incentives in 2025, up from $315 million in 2024. These incentives, including up to $6.4 billion in CHIPS Act grants, are critical for funding the company's large-scale US manufacturing expansion and modernization projects, reducing the net capital outlay.
In 2025, the company issued $4,430 million in new debt while repaying $4,619 million, resulting in a net decrease in debt principal. Micron also declared a quarterly dividend of $0.115 per share, indicating a commitment to shareholder returns, though no share repurchases were made in Q4 2025, with $2.81 billion remaining under authorization.
Micron is a member of the Responsible Business Alliance (RBA) and adheres to its Code of Business Conduct and Ethics, demonstrating a commitment to ethical business practices and environmental stewardship throughout its global supply chain. The company's responsible sourcing programs require meeting sustainability and governance criteria.
The company proactively manages environmental compliance, with wafer fabrication facilities conforming to ISO 14001:2015 standards. This includes managing raw materials, chemicals, emissions, and waste, reflecting a commitment to continuous improvement in environmental performance.
Micron invests in continuous learning, mentoring, and internal certifications for its diverse workforce. Comprehensive well-being programs cover physical, mental, social, career, and financial aspects, including free mental health support and on-site fitness centers, fostering a supportive and productive work environment.
The market environment in 2025 was characterized by accelerating AI-driven demand for memory, which outpaced industry supply. This strong demand, particularly for HBM and advanced data center products, led to substantial improvements in DRAM pricing, volumes, and margins.
The May 2023 CAC decision in China, preventing critical information infrastructure operators from purchasing Micron products, continues to adversely affect revenue in China. Ongoing international trade disputes, US export controls, and potential new tariffs from the Section 232 investigation pose significant risks to global sales and operations.
New and evolving laws related to cybersecurity, data privacy, AI, and climate change, alongside the US 'One Big Beautiful Bill Act' (OBBBA) and Singapore's Pillar Two legislation, are expected to bring broad changes to tax codes and regulatory requirements. These changes, effective from 2026, introduce uncertainty regarding future compliance costs and effective tax rates.