From Nasdaq: 2025-06-10 10:24:00

Micron Technology’s high bandwidth memory (HBM) chips have surpassed $1 billion in revenues in the second quarter of fiscal 2025, driven by strong demand from high-performance computing and artificial intelligence data centers. Micron’s HBM3E variants offer power reduction and higher memory capacity, leading to full supply sell-out for calendar 2025.

With a total addressable market estimate of over $35 billion in 2025, Micron is focusing on HBM delivery agreements for 2026. NVIDIA has solidified Micron’s position by using their HBM3E chips in their GeForce RTX GPUs. Micron is also developing HBM4, which will increase bandwidth by over 60% compared to HBM3E, ramping up production in 2026.

Competitors like SK hynix, TSMC, and Samsung exist in the HBM market, with SK hynix collaborating with TSMC to develop HBM4 and next-generation packaging technology. Micron’s strong growth potential in the HBM space is bolstered by limited competition and immense growth opportunities.

Micron’s shares have gained 31.8% year-to-date, outperforming the Computer-Integrated Systems industry’s growth. Trading at a lower forward price-to-sales ratio than the industry average, Micron’s fiscal 2025 earnings estimates suggest significant growth. Despite a Zacks Rank #3 (Hold), Micron’s upward revised earnings estimates indicate positive momentum.

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