Micron Technology Inc Post Q3 2025 Earnings Analyst Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Curry - UBS - Analyst : Sanjay, I wanted to ask sort of how you see the HBM TAM scaling with the accelerator TAM. One thing that's been clear over the past three months or so is that the accelerated change is definitely upsiding and growing a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 25, 2025 / 10:00PM, MU.OQ - Q3 2025 Micron Technology Inc Post Earnings Analyst Call And it seems if I take their projections and I take your HBM projections, it kind of seems like the HBM market is going to remain 15% to 20% of what the overall accelerator market is. I guess, how do you see the HBM TAM scaling with that market? And then is there some sort of limit or like [asymptote] that we begin to reach in terms of HBM attached to these GPUs in these custom ASICs?

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : I wanted to talk about gross margins. So first, what is driving the upside sequentially? And then is this the new baseline for gross margins? And then what would be kind of the puts and takes as we look at the next few quarters beyond Q4? Thank you.

Question: Vivek Arya - Bofa Merrill Lynch Asset Holdings Inc - Analyst : And anything beyond this mark? Any puts and takes as we look at the next several quarters? Is this kind of the new baseline? Or is it going to be entirely dependent on the direction of pricing?

Question: CJ Muse - Cantor Fitzgerald - Analyst : I was hoping to revisit your comments on HBM. So you're talking 23%, 24% market share. And it sounds like you're now calling not exiting the year but sometime in the second half. So that's coming in better. And so I guess first question is, should we be a thinking that that number is kind of a 22%, 23% depending, I guess, on seasonality of the $35 billion number? And then perhaps more importantly, as you think about HBM growth in calendar '26, how should we be thinking about the contributions to that growth, both from bits as well as higher ASPs as you go to next-generation products? Thanks so much.

Question: CJ Muse - Cantor Fitzgerald - Analyst : Just trying to understand how you talked about getting to your DRAM market share, which I think you said 23%, 24% for the HBM market, and your previous comments were exiting the year. Now you're saying sometime in the second half. So trying to get an idea of kind of what that revenue number looks like.

Question: Thomas O'Malley - Barclays Services Corp - Analyst : Two here. So my first on the HBM side, you're obviously reaching your share target a little bit earlier. Going into next year, are you guys ready to talk about what you think that your normalized share will be? Obviously, there's difficulties with some of your competitors getting qualified. If that continues into next year, do you guys have a view of if you're able to increase capacity? And if you are, what that share may look like? And then two, on the NAND side, where does utilization stand today? And obviously, you're going through some bit transitions right now internally, which has allowed you to kind of keep some things offline. But as you move into next year, what is your plan for utilization? Is that going to be market dependent? Or at some point, do you need to start bringing on utilization just from the fact that there's a gross margin headwind? Thank you.

Question: Harlan Sur - JPMorgan Chase & Co - Analyst : If I rewind back one year ago during your June earnings call, you guys did say back then that you were sold out on your HBM supply through calendar '25 and that majority of that committed supply was locked in from a pricing perspective. One year later, where are you on your negotiations for your calendar '26 HBM supply and pricing discussions, the team's supply outlook for next year fully committed to? Or maybe a better way to frame it, right? Because I know that the HBM3E and HBM4 12-high qualification cycles might be taking a bit longer. But maybe the other way to frame it is, if you look at your customers' calendar '26 forecasted demand for HBM, is it exceeding your forecasted supply capability?

Question: Joseph Moore - Morgan Stanley - Analyst : I wonder if you could talk in terms of your long-term CapEx plans and the sort of 35% of revenue levels? Is that kind of a reasonable guideline to think about for fiscal '26? Or are you thinking because of the opportunity here you need to invest ahead of that? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 25, 2025 / 10:00PM, MU.OQ - Q3 2025 Micron Technology Inc Post Earnings Analyst Call

Question: Krish Sankar - Cowen and Company LLC - Analyst : I had two questions for Sanjay or two-part question. One is, when you look into HBM4, given the double of I/O content through silicon [via], what kind of trade ratio should we expect for HBM4? And also, when you look at, broadly speaking, is there a difference in HBM bits and margin profile between selling to GPU versus ASIC customers? Thank you.

Question: Chris Caso - Wolfe Research LLC - Analyst : Just a clarification on one of the things you said in the prepared remarks, you talked about there may have been some tariff-related pull-ins by certain customers. I think overall, your comments suggest that you -- at least my interpretation is that you think that the customer inventory levels are getting a bit cleaned up here. Could you clarify the remarks a little bit, put it in context of what you expect that means for customer inventory levels and how that kind of affects your view of bit demand in the second half?

Question: Vijay Rakesh - Mizuho Securities Co Ltd - Analyst : Hi, Sanjay. Just a quick question on the HBM4. Just wondering how the qualification is progressing? And if you continue to see that similar power performance leadership that you guys have had on HBM3E, do you see that continuing on the HBM4 side as well? Thanks.

Question: Vijay Rakesh - Mizuho Securities Co Ltd - Analyst : Got it. And on the SSD side, just quickly, with your focus on AI servers, are you seeing an actuated pull-through on the AI server side for SSDs as well? Thanks.