Micron Technology has crossed a major revenue milestone, reporting over $1 billion in high bandwidth memory (HBM) sales during the second quarter of fiscal 2025. This surge stems from increasing demand across artificial intelligence (AI) data centers, high-performance computing (HPC) workloads, and hyperscale cloud environments.

Micron’s latest HBM3E and HBM3E-12H variants are gaining popularity due to their superior power efficiency and higher memory capacity compared to rival offerings. As a result, the company has sold out its HBM inventory for the entire 2025 calendar year.

The total addressable market for HBMs is projected to exceed $35 billion by the end of 2025. Micron is already securing delivery agreements for 2026 to meet anticipated growth. Reinforcing its position, NVIDIA named Micron a key supplier for its RTX 50 Blackwell GPUs. Micron’s HBM3E chips are now integrated into NVIDIA’s GB200 and GB300 systems.

Looking ahead, Micron is advancing to the next generation of memory—HBM4—which promises a 60% increase in bandwidth over HBM3E. Volume production for HBM4 is set to begin in 2026.

Micron’s HBM revenue jumped 50% sequentially in Q2 FY25, reflecting sustained momentum. The company projects third-quarter FY25 revenue of $8.80 billion (±$200 million), aligning closely with the Zacks Consensus Estimate of $8.81 billion, which reflects a 29.33% year-over-year increase.

Competitive Landscape

The HBM sector remains highly consolidated, dominated by a few players—Micron, SK hynix, Samsung, and TSMC. SK hynix and Samsung produce HBM2E, HBM3, and HBM3E chips, while TSMC specializes in packaging, notably using SK hynix’s memory.

In 2024, SK hynix and TSMC partnered to develop HBM4 and next-gen packaging. SK hynix is now using TSMC’s foundry for HBM4 production, which debuted in April 2025.

Despite the limited number of competitors, the expansive growth potential of the HBM market gives Micron a significant runway. Zacks estimates project Micron’s fiscal 2025 earnings to grow 433% year-over-year, while 2026 earnings are expected to increase 55.87%, even after a recent downward revision.

Micron’s strong HBM momentum, strategic partnerships, and next-gen developments solidify its lead in the rapidly expanding memory landscape.

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News Source: Finance.Yahoo.com