Micron Technology, Inc. is a top semiconductor company in Boise, Idaho. They make memory and storage products like DRAM, NAND flash, and HBM chips, used in computers, phones, servers, and AI systems. Recently, their revenue grew a lot due to high demand, especially from data centers and AI.
Micron got a big federal grant to support U.S. semiconductor manufacturing, which will help them expand their factories and create jobs. Despite some challenges in the DRAM market and lower demand for PCs and smartphones, their focus on data centers and AI sets them up for future success.
Micron Fiscal Q1 2025
Micron Technology (MU) revenue for Q1 2025 was $8.71 billion, slightly below the estimated $8.72 billion. However, their EPS (Earnings Per Share) of $1.79 exceeded the estimated $1.76.
Earning’s Key Highlights:
- Revenue: $8.71 billion, up from $7.75 billion in the previous quarter and $4.73 billion in the same period last year.
- GAAP Net Income: $1.87 billion, or $1.67 per diluted share.
- Non-GAAP Net Income: $2.04 billion, or $1.79 per diluted share.
- Operating Cash Flow: $3.24 billion.
- Data Center Revenue: Surpassed 50% of total revenue for the first time.
- Dividend: The Board of Directors declared a quarterly dividend of $0.115 per share, payable on January 15, 2025
Q2 Guidance
Micron Technology provided its Q2 2025 guidance on December 18, 2024.
- Revenue: Expected to be $7.9 billion, plus or minus $200 million.
- Earnings Per Share (EPS): Forecasted to be $1.33 to $1.53 per share, which is below consensus estimate of $1.97.
- Gross Margin: Expected to be 38.5%, plus or minus 100 basis points.
The company noted that consumer-oriented markets are weaker, which has impacted their guidance. However, they remain optimistic about growth in the second half of the fiscal year, especially in high-margin areas like data centers and AI-driven solutions
Board’s Statement
Micron Technology’s CEO, Sanjay Mehrotra: He highlighted the strong revenue growth driven by robust demand in the data center and AI markets. However, he also acknowledged the weaker consumer-oriented markets, which have impacted their Q2 guidance.
Mehrotra expressed optimism for the second half of the fiscal year, expecting a rebound in consumer demand and continued growth in high-margin areas. The company remains focused on leveraging AI-driven opportunities and expanding its manufacturing capabilities with the support of the federal grant.
Impact of Earning on Stock
Following the release of Micron Technology’s Q1 2025 earnings report, the company’s stock experienced a sharp decline. The stock fell by 16% to around $87 due to the weaker-than-expected Q2 guidance. Investors were particularly concerned about the weaker consumer-oriented markets and the slower PC upgrade cycle.
