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Here's what Micron (MU) looks like based on your research database, pulling from the FY2024 through Q2 FY2026 earnings calls.
Segments — note the reorganization
Micron renamed its reporting segments in FY2026. Latest mix (Q2 FY2026):
- Cloud Memory (CMBU) — $7.7B, ~32%. HBM, high-cap DIMMs, LP. Highest growth.
- Mobile & Client (MCBU) — $7.7B, ~32%. Smartphone + PC DRAM and storage.
- Core Data Center (CDBU) — $5.7B, ~24%. Enterprise/traditional server memory.
- Automotive & Embedded (AEBU) — $2.7B, ~11%. Auto, industrial, IoT/edge.
The drivers
1. AI data center demand → HBM. This is the dominant driver. HBM TAM went from ~$4B (2023) to $35B+ (2025), with management projecting $100B by 2028 — a HBM market that by 2030 would be bigger than the entire 2024 DRAM industry. GPUs/accelerators are "starved of memory bandwidth," and HBM feeds them. Micron has been sold out of HBM in 2024 and 2025 with pricing pre-locked, and reached HBM share parity with its overall DRAM share in 2025.
2. The HBM "trade ratio" tightens all DRAM supply. HBM3E consumes ~3x the silicon of standard DDR5 for the same bits; HBM4E is expected to exceed 4:1. Every wafer going to HBM removes capacity from conventional DRAM — which is why pricing is rising across all segments, not just AI. In Q2 FY26, DRAM prices rose in the mid-60s% sequentially.
3. Pricing + tight supply. Years of capex discipline cut industry wafer capacity below 2022 peaks. Combined with the HBM trade ratio, this produced a tight market and gross margins hitting a record 75% in Q2 FY26 (up from break-even/loss in early FY24).
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Here's a clear picture of Micron, grounded in their most recent reported results (Q2 FY2026, reported March 18, 2026).
Key segments (reorganized in Q4 FY2025)
Micron now reports four business units aligned to end markets rather than product type:
- CMBU – Cloud Memory: hyperscale cloud customers and HBM. The fastest-growing, highest-margin unit.
- CDBU – Core Data Center: mid-tier cloud and enterprise (server DRAM, SSDs).
- MCBU – Mobile & Client: smartphone and PC memory.
- AEBU – Automotive & Embedded: auto, industrial, IoT.
What's driving the business
The dominant driver is the AI capex supercycle. Revenue went from $9.3B (Q3 FY2025) to ~$23.9B (Q2 FY2026), up ~196% YoY, with GAAP gross margin around 74% — extraordinary for a historically cyclical commodity business. Specific drivers:
- HBM demand and pricing — HBM was reported sold out through most of 2026. Each new AI GPU generation needs more HBM content, and supply is tight, so pricing is strong.
- Data-center DRAM shortage — building HBM consumes wafer capacity that would otherwise make standard DRAM, tightening the whole DRAM market.
- Margin/mix shift — moving revenue toward high-value data-center products lifts margins well above prior-cycle peaks.
- Capex and supply discipline — FY2026 capex guided above $25B to fund HBM/DRAM capacity; the key risk is an industry over-build.