What is Micron Technology's current financial performance?

Micron Technology, a leading U.S. memory semiconductor producer, reported a 37% year-over-year increase in revenue for Q3 FY25, reaching $9.3 billion, and a gross margin of 39%.

How is Micron's high-bandwidth memory (HBM) business performing?

Micron's HBM business, which is critical for AI workloads, has seen its HBM3E/4 products lead in power and capacity, with 2025 output already sold out. The company expects its HBM market share to reach 20-25% by the end of this year.

Is Micron Technology's stock undervalued?

Micron's valuation remains attractive, trading at around 10 times its projected FY26 earnings, with a PEG ratio of approximately 0.4x, suggesting its current stock price may not fully reflect its long-term growth potential.

Home / Business and Economy / Micron's Rebound: Surging Profits and AI-Driven Growth

Micron's Rebound: Surging Profits and AI-Driven Growth

24 Jul

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Summary

Micron's Q3 FY25 revenue grew 37% YoY to $9.3B, with gross margin hitting 39%
Micron's high-bandwidth memory (HBM) business is critical for AI workloads, with 2025 output sold out
Micron's valuation remains attractive at ~10x FY26 earnings, with a PEG of ~0.4x

Micron's Rebound: Surging Profits and AI-Driven Growth

Micron Technology, a leading U.S.-based memory semiconductor producer, is experiencing a strong rebound. In its most recent quarter, Q3 FY25, the company reported a 37% year-over-year increase in revenue, reaching $9.3 billion, and a gross margin of 39%.

Micron's fastest-growing business is its high-bandwidth memory (HBM) segment, which is critical for AI workloads. The company's HBM3E/4 products are leading in power and capacity, with 2025 output already sold out. Micron expects its HBM market share to reach 20-25% by the end of this year.

Despite the cyclical nature of the memory semiconductor industry, Micron's valuation remains attractive. The company is trading at around 10 times its projected FY26 earnings, with a PEG ratio of approximately 0.4x. This suggests that Micron's current stock price may not fully reflect its long-term growth potential, particularly in the AI and data center markets.

Overall, Micron's recent financial performance, technological leadership in HBM, and compelling valuation make it an intriguing investment opportunity for investors with a longer-term horizon.

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