Micron Aims for Billions in HBM Sales by 2025, Riding AI Wave

Micron Technology (NASDAQ: MU) is gearing up for a big jump in sales from its high bandwidth memory (HBM). The company expects to go from making hundreds of millions in 2024 to billions in 2025. That's like going from saving pennies in your piggy bank to having stacks of cash in a vault.

Key Points:

• Big Revenue Jump: Micron is looking at a huge increase in HBM sales, predicting billions in 2025.
• Main Customer: Nvidia, the big player in AI and graphics, is a major buyer of Micron's HBM3E.
• New Products: Micron is working on even better HBM models, HBM4 and HBM4E.
• Supply and Demand: There's going to be less DRAM and NAND memory available in 2024, which means Micron can charge more and make better profits.
• AI Boom: The rise in AI PCs and smartphones, along with more AI in data centers, is set to drive record revenues. Plus, with Windows 10 support ending, many people will upgrade their PCs in 2025.
• Government Support: Micron has a preliminary deal for $6.1 billion in federal grants under the CHIPS and Science Act, aimed at building semiconductor plants in Idaho and New York.

What This Means for You:

1. Revenue Growth: Micron’s expected surge in HBM sales is a big deal and could lead to its stock price rising.
2. AI Demand: The growing need for AI technology is a huge opportunity for Micron.
3. Supply Constraints: With less DRAM and NAND memory available, Micron can make more money from what it sells.
4. Federal Grants: The government’s financial support helps secure Micron’s future growth.

What You Can Do:

• Keep an Eye on AI: Watch how AI technology develops and how Micron is involved.
• Understand Supply and Demand: Know that less supply can mean higher prices and better profits for Micron.
• Follow Micron’s Moves: Pay attention to how Micron uses government grants and its plans for new semiconductor plants.

Micron’s stock dipped a bit after hours on Wednesday, dropping as much as 7%. But with strong growth potential from AI demand and government support, there’s a promising future ahead.