Micron Technology has reported strong financial performance in fiscal Q3-2025 — marked by record revenue of $9.3 billion, up 15 percent sequentially and 37 percent year-over-year — significantly powered by advancements in AI and AI-driven demand across its product lines.
“As AI drives demand for high-performance memory and storage, Micron is exceptionally well positioned to capitalize on this transformative era,” Sanjay Mehrotra Chairman, President and Chief Executive Officer of Micron Technology, said.
Over the next five years, IT spending will focus heavily on integrating AI to enhance user experiences, customer engagement, and core business operations. The initial wave of investment has gone into expanding and upgrading data centers to handle the growing need for high-performance computing essential for AI training and inference.
In 2025, global data center capital expenditure is expected to rise by 25.8 percent to $598 billion, with server investments — growing 33.5 percent — making up 51 percent of that total. Total data center Capex is projected to reach nearly $1 trillion by 2030, underscoring the foundational role of AI in shaping future digital infrastructure, Canalys report said.
How Micron performed?
Micron’s Compute and Networking Business Unit generated $5.1 billion, up 11 percent sequentially.
Micron’s Storage Business Unit posted $1.5 billion in revenue, a 4 percent sequential increase.
Micron’s Mobile Business Unit delivered $1.6 billion, rising 45 percent sequentially.
Micron’s Embedded Business Unit earned $1.2 billion, up 20 percent sequentially.
Spending on artificial intelligence (AI) is a key growth catalyst in several areas of Micron’s business. The Compute and Networking Business Unit, which achieved a record $5.1 billion in revenue, benefited from a nearly 50 percent sequential increase in high-bandwidth memory (HBM) sales. HBM is a critical component for AI workloads, particularly in training and inference for large-scale models. Micron’s strategic focus on HBM positions it as a foundational supplier in the expanding AI ecosystem.
The company also noted strong sequential growth in low-power server DRAM and high-capacity DRAM, both of which are essential for AI-centric data center architectures. Micron remains the sole volume producer of low-power DRAM for data centers, further underlining its leadership role in AI infrastructure.
Micron’s progress on its 1γ (1-gamma) DRAM technology, which uses extreme ultraviolet lithography (EUV), is another AI-driven advancement. This node offers a 30 percent improvement in bit density, more than 20 percent lower power consumption, and up to 15 percent higher performance versus its predecessor, making it highly suitable for AI and high-performance computing (HPC) environments.
In NAND, Micron is also gaining share in AI-related storage markets. It reached a new quarterly market share record in data center SSDs and became the No. 2 brand in this segment, reflecting demand from AI data processing. Micron’s ramp-up of its G9 node and qualification of new QLC-based SSDs show its preparation for AI-fueled storage needs.
Overall, AI is not only driving demand for Micron’s memory and storage solutions across data center, mobile, and embedded markets, but also shaping its technology roadmap and investment strategy. With about $14 billion in capex for fiscal 2025, most of it targeted at HBM, advanced manufacturing, and R&D, Micron is clearly aligning its growth trajectory with the accelerating global adoption of AI.
Rajani Baburajan
