A：Micron views AI as a significant growth driver in the semiconductor industry and expects to deliver record revenue and significantly improved profitability in fiscal 2026, with AI being a major beneficiary.

A：Micron has achieved record time mature yields of one gamma DRAM 50% faster than the prior generation and plans to leverage this technology across its entire DRAM portfolio. G9 NAND production ramp is progressing well, and the company has qualified G9 QLC NAND for enterprise storage. Future plans include utilizing one gamma across all DRAM products and continuing the production ramp of G9 NAND.

A：Micron received a chips grant disbursement for a new high-volume manufacturing fab in Idaho with the first wafer output expected in the second half of calendar 2027. Design work has started for a second Idaho fab for additional capacity. An EUV tool was installed in Micron's Japan fab to enable 1 gamma capability, demonstrating the company's technology leadership and commitment to advanced memory technology production.

A：Micron's data center business reached a record 50% of total company revenue in fiscal Q4 with gross margins of 54%. The HBM business experienced strong growth, with HBM revenue reaching nearly $2 billion. Data centers continue to require high-value products, which is aligning with Micron's strategy and driving product mix and profitability enhancements.

A：Micron has been the sole supplier of LPDDR5 for Nvidia's GPUs since their launch and has achieved over 50% sequential growth in revenue in the quarter, evidencing a strong partnership that drives the adoption of Micron's LPDDR5.

A：Micron introduced the industry's first G9 NAND data center products, including Pcie Gen 6 SSDs, and successfully qualified its first 96-layer NAND SSDs with both performance and mainstream categories for PCs.

A：Micron is gaining share in the mobile DRAM market with their customer-focused technology leadership and vertical integration. They plan to continue supporting existing mobile DRAM products while focusing future mobile DRAM development on higher ROI opportunities.

A：Micron is seeing an increase in industrial and automotive demand, particularly from ADAS and AI trends which are driving higher memory and storage content. They have also seen improved profitability with stronger pricing and an increased mix of advanced technology nodes.

A：Micron expects industry DRAM demand growth in calendar 2025 to be in the high teens percentage range, higher than the previous outlook. Calendar 2025 industry NAND bit demand growth is now expected to be in the low to mid-teens percentage range.

A：Micron invested $13.8 billion in CapEx in fiscal 2025 and expects higher capital spending in fiscal 2026, driven by continued technology node migration to 1-gigabit nodes for DRAM and for HBM growth, and 96-layer nodes for NAND.

A：Micron delivered strong financial results, achieving record revenue of $37.4 billion (up 49% year over year), gross margins expanded to 41% (a 17 percentage point improvement), and EPS reached $8.29 (reflecting a 538% increase). The company also set a quarterly revenue record of $11.3 billion in Q4.

A：The cloud memory business unit had revenue of $4.5 billion, representing 4% of total company revenue, with a sequential increase of 34%. HBM revenues reached a new quarterly record.

A：The mobile client business unit had revenue of $3.8 billion, representing 33% of total company revenue, with a sequential increase driven by higher DRAM shipments and improved pricing.

A：The consolidated gross margin for fiscal Q4 was 45.7% of script basis points, sequentially improved by favorable product mix, better DRAM pricing, and strong execution on cost reductions.

A：The capital expenditures for fiscal Q4 were $4.900 million, resulting in free cash flows of $803 million. For the full year fiscal 2025, the free cash flow was $3.7 billion, representing 10% of revenue.

A：Ending inventory for fiscal Q4 was $8.4 billion, or 124 days. Sequentially, inventory was down $372 million, and inventory days were down 15 days, driven by strong sequential bit shipment growth in DRAM.

A：Micron expects price, cost, and mix to all contribute to strengthening gross margins in the first fiscal quarter. Operating expenses are projected to be approximately $1.34 billion, with the sequential increase driven by RD related to data center product innovation and development.

A：For fiscal Q1, Micron expects revenue to be a record $12.5 billion plus or minus $300 million, with a gross margin in the range of 51.5% plus or minus 100 basis points, and operating expenses to be approximately $1.34 billion plus or minus $20 million based on a share count of approximately 1.2 billion shares. The expected EPS is a record $3.75 per share plus or minus 15 cents.

A：The current AI trends are strong, with growth seen in both training and inference. The broadening of AI applications is increasing demand for AI servers and edge devices like smartphones. This has driven a strong growth trend for the industry, with a focus on AI in data centers and smartphones. AI servers have driven strong demand for high-density DRAM modules, and traditional server demand is also present. In smartphones, recent launches of AI-enabled smartphones with higher content of DRAM are contributing to the demand. Additionally, AI PCs are a tailwind for DRAM content, supported by the end of Windows 10, leading to strong demand across the industry.

A：The supply situation is currently tight, with factors contributing to it as discussed in the prepared remarks. Tight supply is attributed to various factors which affect the availability of micro DRAM, making it very tight. The company looks forward to a healthy demand-supply balance in calendar year 26 with customer inventories and supplier inventories in good positions. Specifically, micro DRAM supply is very constrained.

A：The details on CapEx spending have not been laid out in full, but it has been mentioned that the spend in 2023 will predominantly be for DRAM, including construction and facilities, and some tools for node transitions in new greenfield installations. The net CapEx was guided to be around $13 billion, which is the gross CapEx offset by proceeds from government incentives. For the previous year, the net CapEx was $13.8 billion, with a gross spend of $15.8 billion, supported by $2 billion in government incentives. Government incentives in 2023 are expected to come mainly from the US, Singapore, and Japan.

A：It is expected that inventory levels, particularly for DRAM, will remain at or better than the fourth-quarter levels, with inventory remaining very tight as discussed throughout the year. This will likely result in inventory levels below targets. The company is working closely with customers, who understand the strong demand and tight supply in the DRAM market. The supply outlook is focused on supporting demand with new ramps for DRAM and HBM products, as well as maintaining production efficiencies and leveraging existing clean room space for technology transitions. This is expected to contribute to continued supply tightness into calendar year 2026. The team's confidence in continued tightness is based on the strong demand environment and the ongoing supply constraints.

A：The team did not need to redesign the base logic die to achieve a 40% performance increase over the JEDEC standard. The performance increase was made possible through a combination of innovative design, advanced memory architecture, and advanced CMOS technology for both the DRAM and base dies, all manufactured by Micron, which provides a competitive advantage. The higher performance HBM4 skew is not pushing out customer calls and is still on track with the original plan. Furthermore, the power consumption for the higher speeds is still superior to competitive solutions.

A：Pricing agreements for HBM3e are done with the majority of HBM3e suppliers, and volume is fixed with most customers. Agreements on HBM for supply and 2026 HPM supply are expected to be concluded in the next few months.

A：Micron's Hpm 4 product specifications are industry leading and outperform the rest. The company is well positioned with these specifications.

A：Micron will manage the product mix post-reaching Hpm's share in CQ3 to align with the industry DRAM share, ensuring healthy margins while keeping an eye on ROI on the portfolio and staying disciplined with total investments.

A：HBM 4 will be offered with both in-house base die and customized TSMC logic die. Micron expects to provide both standard and customized products with HBM 4e using its own base die and HBM 4e using TSMC's process. The value proposition increases with HBM 4, and customization is expected to provide higher gross margins. Micron's HBM uses its own logic die, providing unique advantages due to ownership of the CMOS and embedded DRAM architecture, which gives them a unique advantage in performance.