Micron Technology, a late-comer to the high-bandwidth memory (HBM) market, has made significant strides in capturing market share and driving revenue growth. The company’s 12-high HBM3E stacks, which consume 20% less power than competitors’ eight-high stacks while delivering 50% higher capacity, have been instrumental in securing major contracts with top-tier customers.
According to Micron CEO Sanjay Wadhwa, the company expects to achieve HBM market share commensurate with its overall DRAM market share by mid-2025. This growth trajectory is expected to drive $4.7 billion in HBM sales this fiscal year and over 1 million accelerators. The incremental revenue addition from HBM will account for approximately 25% of the DRAM business, indicating a promising future for the company.
The company’s Compute and Networking Business Unit, which serves as a proxy for the datacenter market, reported $4.36 billion in sales, up 2.5 times year-over-year and 45.6% sequentially. This unit posted an operating loss in the previous period but achieved a $1.71 billion gain this quarter.
Micron’s HBM ramp is expected to continue, with sequential growth through all of fiscal 2025 anticipated. The company has sold out its HBM capacity for fiscal 2024 and fiscal 2025, providing clear visibility into revenue streams.
With all the HBM already sold for fiscal 2025, Micron’s focus shifts to execution now. Analysts expect the total addressable market (TAM) for HBM to reach $100 billion by 2030, with potential for further growth in the years following. A compelling investment case may emerge if this estimate is surpassed.
As the memory market continues to evolve, Micron’s innovative solutions and strategic partnerships will likely drive its position as a leader in the industry.
Source: https://www.nextplatform.com/2024/12/19/micron-is-fashionably-late-to-the-hbm-party-but-not-too-late