Micron Q2 Revenue Up 38.3%, HBM 2025 Capacity Sold Out!

On March 20, 2025, Micron Technology, a leading memory chip manufacturer, announced its financial results for the second quarter of fiscal year 2025, which ended on February 27, 2025. The company reported revenue of $8.05 billion, reflecting a 7.6% decline from the previous quarter but a 38.3% increase compared to the same period last year. This performance surpassed analysts' expectations, which had predicted revenue of $7.89 billion.

Micron's GAAP net income for the quarter was $1.58 billion, with earnings per share (EPS) of $1.41. The company's non-GAAP net income stood at $1.78 billion, with an EPS of $1.56, exceeding analysts' projections of $1.42 per share. As a result of these better-than-expected results, Micron's stock price surged over 4.5% in after-hours trading, though it settled at a 0.99% increase by the close of the extended session, reaching $103.99 per share.

Despite a slight decline in revenue from the first quarter, Micron's Q2 results were significantly above market expectations. Additionally, the company's non-GAAP EPS of $1.56 also outperformed the consensus estimate of $1.42 per share, leading to a positive market reaction.

Looking ahead, Micron forecasted third-quarter FY2025 revenue to be approximately $8.8 billion, with a $200 million variance. Although this estimate is slightly lower than the first quarter's performance, it still exceeds the market's expected $7.89 billion. The company also projected third-quarter adjusted EPS to be $1.57, with a $0.10 range of variability.

Sanjay Mehrotra, Micron's President, CEO, and Chairman, attributed the company's strong performance to a twofold increase in data center revenue compared to the previous year. "With the launch of the 1-gamma DRAM node, we are further expanding our technological leadership," Mehrotra stated. He also highlighted the company's optimistic outlook for Q3, with record-breaking seasonal revenue driven by growing demand for DRAM and NAND products from data centers and consumer markets. Micron is poised to achieve record revenue and significantly improved profitability in fiscal year 2025.

The surge in global demand for artificial intelligence (AI) has also spurred a rise in demand for Micron's High Bandwidth Memory (HBM) chips. Sumit Sadana, Micron's Chief Business Officer, emphasized, "As we continue to expand our HBM production capacity and market share, we expect consistent growth throughout 2025." He further added that all of Micron's HBM chips for the 2025 calendar year have already been sold out.

Micron also addressed the potential impact of new tariffs proposed by former U.S. President Donald Trump. While the company did not include the uncertainty surrounding these tariffs in its forecast due to the unpredictability of timing, type, and implementation, it intends to pass on the associated costs to customers.