Micron Triples Server Revenue Thanks to HBM Demand

The memory market trends are such that those suppliers that have the ability to supply Nvidia with HBM3E chips demonstrate good dynamics of financial indicators. Since Micron Technology is among them, its quarterly revenue in the server segment has grown threefold compared to the same period last year.

Image source: Micron Technologu

Micron’s total revenue for the last fiscal quarter grew by 38% to $8.05 billion, beating analysts’ expectations, largely due to strong demand for memory chips in the server segment. Earnings per share reached $1.56 versus the expected $1.42. Net income nearly doubled to $1.58 billion. HBM sales brought the company more than $1 billion in revenue last quarter. It will continue to grow throughout calendar 2025, and the company has already sold out all of its HBM production quotas in advance this year.

In its guidance for the current quarter, Micron mentions revenue of $8.8 billion, which is higher than analysts expected ($8.5 billion). Micron expects to close the current fiscal year, which ends in the fall, with record revenue and a significantly higher profit margin. Such optimism from management even caused the company’s stock to rise by 6% in after-hours trading, but by the end of the additional trading session, the gain had shrunk to less than 1%.

However, there are some weak points in Micron’s reporting. For example, the profit margin in the last quarter did not exceed 37.9% and was lower than market expectations, and in the current quarter it will be limited to 36.5%, which is also worse than third-party forecasts. Management expects the profitability situation to improve due to rising prices for memory chips only by the fourth fiscal quarter, which has not yet arrived.