Micron Technology Inc.
MUBusiness Overview
ticker: MU step: 01 generated: 2026-05-12 source: quick-research
Micron Technology, Inc. (MU) — Business Overview
Business Description
Micron Technology is one of the world's three major memory chip producers (alongside Samsung + SK Hynix), the only US-based DRAM + NAND manufacturer at scale. The company's transformation from a commoditized memory cyclical into an "AI memory" leader has been the defining 2025-2026 story: HBM (high-bandwidth memory) revenue scaled from <$1B in FY24 to $8B annualized run-rate by FQ4 2025 and is approaching the largest single segment. Micron exited the consumer "Crucial" brand in Feb 2026 to focus 100% of capacity on enterprise + AI. CEO Sanjay Mehrotra has been at the helm since 2017.
Revenue Model
- DRAM (~80% of revenue): Traditional DDR4/5 for PC + servers + mobile, HBM3E + HBM4 for AI accelerators, LP-DRAM for mobile + edge
- NAND Flash (~17%): SSDs for enterprise, client, mobile; QLC NAND for data center storage
- Other (~3%): NOR flash, automotive
Products & Services
High-Bandwidth Memory (HBM) — The AI Story
- HBM3E 8-Hi (24GB): Production at scale for Nvidia H100/H200/Blackwell
- HBM3E 12-Hi (36GB): ~30% lower power than competitors; production Q3 2025
- HBM4: Mass production started early 2026 (Micron first to volume); for Nvidia Rubin
- HBM4E: Exploring TSMC process for advanced packaging
- 5-year HBM supply agreement signed (volume + pricing) — structural shift from spot pricing
DRAM
- DDR5: Server + PC memory
- High-capacity DIMMs: Data center memory expansion
- LP-DRAM: Mobile + edge (LPDDR5X for premium smartphones, automotive)
NAND
- G9 NAND: 232-layer TLC for enterprise SSDs
- QLC NAND: High-density data center storage
- Mobile NAND (UFS)
Manufacturing Footprint
- US Fabs: Boise (HBM advanced packaging), Manassas (NOR + legacy DRAM); new Idaho + NY fabs in buildout (~$200B+ commitment with CHIPS Act funding)
- Asia Fabs: Taiwan, Singapore, Japan (Elpida/Inotera legacy)
- CapEx FY2026: $25B+ (nearly 2x FY25) — focused on HBM capacity
Customer Base & Go-to-Market
- Nvidia: Primary HBM customer (H100, H200, Blackwell, Rubin)
- Other AI accelerator makers: AMD, Intel (Gaudi), hyperscaler custom ASICs
- Hyperscalers: Direct DRAM + NAND for AI servers (Cloud Memory revenue surged from $2.95B → $7.75B in 1 year)
- PC + Smartphone OEMs: Apple, Samsung, Dell, HP for DDR + LP-DRAM
- Automotive Tier 1s: Continental, Bosch, etc. for embedded memory
- Geographic mix: ~30% Americas, ~50% APAC ex-China, ~20% China
Competitive Position
Micron is #3 in DRAM (~21% share, behind SK Hynix ~40%, Samsung ~38%) and #3-4 in NAND. Moats: (1) only US-based DRAM at scale, aligned with CHIPS Act + onshore narrative, (2) HBM3E 12-Hi power efficiency lead (30% better than competitors), (3) first to mass HBM4 production, (4) 5-year contracted HBM supply agreement provides revenue visibility uncommon in memory. Bears note Samsung + SK Hynix have lithography process advantages for HBM4E. SK Hynix has 62% HBM market share.
Key Facts
- Founded: 1978 (Boise, ID)
- Headquarters: Boise, ID
- Employees: ~48,000
- Exchange: NASDAQ
- Sector / Industry: Technology / Semiconductors (Memory)
- Market Cap: ~$135B (May 2026)
- CEO: Sanjay Mehrotra (since 2017)
- Dividend: $0.46 annual ($0.115 quarterly) — relatively small for the market cap
- FY end: late August
- 2025 CHIPS Act funding: $6.1B+
Financial Snapshot
ticker: MU step: 04 generated: 2026-05-12 source: quick-research
Micron Technology, Inc. (MU) — Financial Snapshot
Note: Micron's fiscal year ends in late August. "FY2025" = fiscal year ended Aug 2025.
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $15.5B | $25.1B | $37.4B | +49% |
| DRAM Revenue | $11.6B | $17.6B | $28.6B | +62% (HBM-driven) |
| NAND Revenue | $3.4B | $6.6B | $7.5B | +14% |
| Non-GAAP Gross Margin | -9% | 35% | 50%+ | massive expansion |
| Non-GAAP Operating Margin | -36% | 23% | 35%+ | |
| Non-GAAP Net Income | -$5.8B | $4.0B | $8.5B | +112% |
| Non-GAAP EPS | -$5.34 | $3.55 | $7.65 | record |
Quarterly Trajectory (FY2026)
| Quarter | Revenue | Gross Margin |
|---|---|---|
| Q1 FY26 (Nov 2025) | $13.6B (+57% YoY) | 56.8% |
| Q2 FY26 (Feb 2026) | $23.9B (record) | 74.9% |
| Q3 FY26 guide | growing | ~81% (guidance) |
HBM + AI Memory Detail
| Metric | Value |
|---|---|
| FY25 HBM Revenue | $8B annualized in FQ4 |
| HBM + High-Cap DIMMs + LP-Server DRAM | $10B (5x growth) |
| Cloud Memory Revenue Q2 FY26 | $7.75B (vs $2.95B FQ2 FY25) |
| Data Center % of Revenue | 56%+ by YE 2025 |
| HBM Market Share | ~20-21% (vs SK Hynix 62%, Samsung remainder) |
2026 Strategic Moves
| Move | Impact |
|---|---|
| Exited "Crucial" consumer brand (Feb 2026) | 100% wafer capacity to enterprise + AI |
| 5-year HBM supply agreement (volume + pricing) | First long-term contracted memory |
| FY26 CapEx | $25B+ (nearly 2x FY25) |
| New US fab buildouts | Idaho + NY (~$200B+ multi-year) |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$14B |
| Capital Expenditures | ~$13.5B |
| Free Cash Flow | ~$0.5B (heavy CapEx) |
| Cash & Investments | ~$10B |
| Total Debt | ~$15B |
| Net Debt/EBITDA | ~0.3x |
Key Ratios (approximate, May 2026)
- P/E (forward): ~10x | EV/Sales: ~3x | Dividend Yield: ~0.4%
- ROIC: ~25% (cycle peak)
- FCF Margin: low — capex absorbing most cash (intentional)
Growth Profile
FY25 revenue +49% to $37.4B. Q1 FY26 +57%, Q2 FY26 $23.9B record. Gross margin trajectory: 35% (FY24) → 50%+ (FY25) → 75% (Q2 FY26) → 81% (Q3 FY26 guide). HBM demand sold out industry-wide through 2026. Crucial divestiture concentrates capacity on AI/enterprise. $25B CapEx investment positions for HBM4 + HBM4E supremacy in 2027-2028.
Forward Estimates
- FY2026E Revenue: ~$95-100B (consensus, +160%+ — extraordinary cycle peak)
- FY2026E EPS: ~$25-30 (consensus, +220-290%)
- FY2027E Revenue: ~$110B+
- FY2027E EPS: ~$32+ (assumes HBM4 ramp continues)
- Memory cycle risk: Always a multi-year cycle — peak likely 2026-27
Capital Return
- Dividend $0.46 annual = small ($500M paid)
- Buybacks moderated for CapEx investment
- $25B CapEx absorbs FCF — investing for next cycle
- Stock up 120% YTD — primary return mechanism
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $MU.