Q2 2025 Micron Technology Inc Earnings Call Transcript
Key Points
- Micron Technology Inc (MU) achieved record revenues in data center DRAM, with HBM revenue growing more than 50% sequentially to over $1 billion.
- The company remains the only one globally to ship low-power DRAM into the data center in high volume, showcasing its pioneering innovation.
- Micron's 1-beta DRAM technology leads the industry, and the launch of the 1-gamma node has shown significant improvements in power, performance, and bit-density.
- The company is making disciplined investments to capitalize on AI-driven growth opportunities, including expanding HBM capacity and constructing new facilities.
- Micron's HBM3E delivers a 30% power reduction compared to competitors, and the company has begun volume production of HBM3E 12 high, focusing on ramping capacity and yield.
- Fiscal Q2 revenue was down 8% sequentially, and the gross margin decreased due to pricing in consumer-oriented segments, especially in NAND.
- NAND revenue decreased 17% sequentially, with prices decreasing in the high-teens percentage range.
- The company faces challenges with NAND underutilization, which continues to weigh on gross margins.
- Operating expenses are projected to increase by over 10% in fiscal 2025 to support high-value products, impacting profitability.
- Micron's inventory days increased to 158 days, up from the prior quarter, indicating potential inefficiencies in inventory management.
Thank you for standing by and welcome to Micron's second quarter 2025 financial call. (Operator Instructions) As a reminder, today's program is being recorded.
And now I'd like to introduce your host for today's program, Satya Kumar, Corporate Vice President, Investor Relations and Treasury. Please go ahead, sir.
Thank you, and welcome to Micron Technology's fiscal second quarter 2025 financial conference call. On the call with me today are Sanjay Mehrotra, our Chairman, President and CEO, and Mark Murphy, our CFO. Todayâs call is being webcast from our Investor Relations site at investors.micron.com, including audio and slides. In addition, the press release detailing our quarterly results has been posted on the website, along with the prepared remarks for this call.
Todayâs discussion of financial results is presented on a non-GAAP financial basis unless otherwise specified. A reconciliation of GAAP to non-GAAP financial measures can be found on
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