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Micron Technology (NASDAQ:MU) expects the sale of high bandwidth memory, or HBM, to expand from $100s of millions in revenue in fiscal year 2024 to billions in revenue by fiscal year 2025.
“We expect to achieve HBM market share commensurate with our overall DRAM market share sometime in CY25,” said Micron CEO Sanjay Mehrotra, in Wednesday afternoon’s third-quarter fiscal 2024 financial results conference call. “Our HBM is sold out for CY24 and CY25 with pricing already contracted for the overwhelming majority of our 2025 supply.”
Nvidia (NVDA) is a primary customer for Micron’s HBM3E.
Micron is currently working on its HBM4 and HBM4E models.
“As we look ahead to 2025, demand for AI PC and AI smartphones and continued AI demand in data center will drive record revenue,” Mehrotra said.
The introduction of AI PCs combined with the end of life for support of Microsoft (MSFT) Windows 10 should drive the PC replacement cycle during CY2025, he added.
Micron also expects supply for DRAM and NAND memory will both be below industry demand for CY2024.
“This tight supply will help drive the considerable improvements in profitability and ROI that are needed to enable the investment required to support future growth,” Mehrotra said.
Micron indicated it had signed a non-binding preliminary memorandum of terms to receive $6.1B in grants from the U.S. federal government through the CHIPS and Science Act. This will go to semiconductor fabrication plants in Idaho and New York.
“We are in the early innings of a multi-year race to enable artificial general intelligence, or AGI, which will revolutionize all aspects of life,” Mehrotra added.
Micron shares initially tumbled nearly 5% during post-market trading on Wednesday.