How Does Micron Technology Make its Money?
Micron Technology is one of the world’s largest memory and storage semiconductor companies, designing and manufacturing DRAM (dynamic random-access memory), NAND flash memory, and NOR flash chips. Memory chips are in virtually every electronic device — from smartphones and PCs to data center servers and automobiles.
The memory industry is dominated by three companies: Samsung (South Korea), SK Hynix (South Korea), and Micron (the only U.S.-based major memory manufacturer). Micron operates fabrication facilities in the U.S. (Virginia, Idaho), Japan, Singapore, and Taiwan. The company is benefiting enormously from the AI boom, as AI training and inference require vastly more memory than traditional computing workloads.
Micron Technology (MU) Business Model
Micron Technology operates in the semiconductors sector. Below is a summary of Micron Technology’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Micron Technology’s 2024 fiscal year filings with the SEC.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Micron Technology Competitors
Micron Technology’s key competitors and comparable public companies in the semiconductors sector include Nvidia, Intel, and Broadcom. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Micron Technology stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Business Unit | FY2024 (Aug) | FY2023 (Aug) | YoY Growth |
|---|---|---|---|
| Compute & Networking (CNBU) | $11.6B | $4.5B | +157.8% |
| Mobile (MBU) | $6.8B | $3.2B | +112.5% |
| Embedded (EBU) | $3.9B | $3.6B | +8.3% |
| Storage (SBU) | $3.2B | $4.0B | -20.0% |
| Total Revenue | $25.1B | $15.5B | +61.9% |
By Technology
| Technology | FY2024 | Approx. % of Revenue |
|---|---|---|
| DRAM | $17.6B | ~70% |
| NAND | $7.1B | ~28% |
| Other | $0.4B | ~2% |
Compute & Networking — 46% of Revenue
The largest and fastest-growing business unit. Includes DRAM and High Bandwidth Memory (HBM) for data center servers, AI accelerators (sold to Nvidia, AMD, and hyperscalers), and networking equipment. Revenue more than tripled driven by explosive AI demand. HBM is the key product — these are specialized DRAM stacks that sit directly on top of GPUs, providing the enormous memory bandwidth that AI workloads require. Micron’s HBM3E product has been qualified for Nvidia’s H200 and B200 GPUs.
Mobile — 27% of Revenue
DRAM and NAND for smartphones. Revenue more than doubled as the smartphone market recovered from a deep 2023 inventory correction and as smartphone memory content per device grew (phones now ship with 8-12GB of DRAM, up from 4-6GB a few years ago).
Embedded — 16% of Revenue
Memory for automotive, industrial, and consumer electronics applications. Automotive memory content is growing as vehicles incorporate more ADAS, infotainment, and connected features.
Storage — 13% of Revenue
NAND-based solid-state drives (SSDs) for data centers and consumer PCs. Revenue declined as SSD pricing remained competitive and enterprise customers moderated purchases.
Income Statement Overview
| Metric | FY2024 | FY2023 |
|---|---|---|
| Total Revenue | $25.1B | $15.5B |
| Cost of Goods Sold | $17.4B | $17.9B |
| Gross Profit | $7.7B | -$2.4B |
| Operating Expenses | $4.1B | $4.0B |
| Operating Income | $3.6B | -$6.4B |
| Net Income | $778M | -$5.8B |
Key Financial Metrics
- Gross Margin: 30.7% — A dramatic recovery from negative margins in FY2023 (the worst memory downturn in a decade). Gross margins are still expanding and expected to reach 40%+ as HBM revenue scales.
- Operating Margin: 14.3% — Swung from deeply negative to positive in a single year. Memory industry margins are highly cyclical, tied directly to supply/demand balance and pricing.
- Revenue Growth: +61.9% — Explosive growth driven by the AI-fueled memory supercycle. DRAM grew faster than NAND, reflecting AI’s disproportionate need for high-speed memory.
- HBM Revenue Growth: 400%+ — From a small base, HBM revenue is ramping rapidly and expected to continue growing as every AI GPU requires HBM stacks. Micron has significant pricing power in HBM due to limited supply.
- Capex: ~$8B — Micron is investing heavily in manufacturing, including new fabs in Idaho and New York supported by CHIPS Act incentives.
Is Micron Technology Profitable?
Yes, Micron Technology is profitable. The company reported net income of $778M on total revenue of $25.1B. With an operating margin of 14.3%, Micron Technology demonstrates solid profitability for the semiconductors sector. The gross margin of 30.7% reflects Micron Technology’s pricing power and cost structure.
What to Watch
- HBM market share — SK Hynix leads in HBM, with Micron gaining share. Winning HBM3E and HBM4 design wins with Nvidia, AMD, and hyperscalers is the most important competitive dynamic for Micron’s growth.
- Memory pricing cycle — Memory is inherently cyclical. Prices can swing 50%+ in both directions. The current AI-driven demand is supporting prices, but any demand slowdown or supply oversupply could compress margins quickly.
- AI demand durability — Micron’s growth thesis depends on continued AI infrastructure investment. If hyperscalers moderate their AI buildout, memory demand could soften.
- CHIPS Act investments — Micron is receiving up to $6.1B in CHIPS Act grants to build new fabs in the U.S. These investments are critical for long-term manufacturing competitiveness and supply chain resilience.
- NAND profitability — NAND has lagged DRAM in margin recovery. Improving NAND economics through higher-density products (200+ layer NAND) and enterprise SSD adoption would boost overall profitability.
Micron Technology (MU) Financial Summary
Micron Technology (MU) is a semiconductors company that generated $25.1B in total revenue in fiscal year 2024. Revenue grew +61.9% year-over-year. The company earned $778M in net income, making it profitable. For a deeper look at Micron Technology’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.