AI Chip Demand Fuels Micron’s $37.38B Sales and Tightens AMD GPU Supply
Surging AI demand lifted Micron’s FY25 sales to $37.38B and FY26 EPS forecasts by 300%, tightening HBM and DDR5 supply critical for AMD’s AI GPU production. Micron trades at 12X forward earnings, offering deeper valuation discount than peers.
1. Record FY25 Performance
Micron posted FY25 sales of $37.38 billion and EPS of $8.29 per share, both reaching multi-year highs driven by AI hardware demand.
2. HBM and DDR5 Demand Surge
High-bandwidth memory and DDR5 DRAM saw explosive demand from AI data centers and accelerators, creating structural supply constraints rather than a temporary spike.
3. Impact on AMD GPU Production
AI GPUs from AMD rely heavily on HBM bandwidth, and tight memory supply could constrain AMD’s production capacity or increase component costs.
4. Valuation Discount to Peers
Despite robust growth and FY26 EPS estimates up 300% to $33.22, Micron trades at just 12X forward earnings compared to 23X for Sandisk and 31X for Western Digital.