Micron is dominating the HBM market. (Image Credit: Micron Technology)
At the AI Discovery Bus Tour, Piper Sandler analyst Harsh V. Kumar spoke with Micron and gained insights into its high bandwidth memory (HBM) strategic approach. According to Kumar, the company's HBM3E product line, which has 30% higher power efficiency versus competitors, is turning into a big money maker for Micron.
The analyst says Micron's HBM products have already sold out for all of 2024 and the majority of 2025, and the next few years may see additional revenue growth. As a result, the industry could trend toward differentiation, with the HBM catering to computing architectures as we transition from treating memory products as a commodity. Company projections indicate that Micron's HBM bits and revenue market share are expected to match its DRAM market share by 2025. It also highlights HBM's strategic importance in the product lineup.
Nowadays, Micron is dealing with obstacles relating to its HBM capacity growth, which relies on cleanroom environments and large capital expenditures, and it plans to address those issues. Kumar notes that this is part of Micron's efforts to connect with data center market customers who offer positive feedback.
Micron is now planning for the next-gen HBM --- its HMM4 product should start manufacturing in 2026, a direction in which the company commits to innovation while meeting its customers' needs. With the adoption of HBM, we can see Micron's growth margins peak at the same level as the memory cycles of the past.
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