Thank you, Satya. Good afternoon, everyone.
Micron had an outstanding finish to fiscal 2025, delivering fiscal Q4 revenue, gross margin, and EPS all above the high end of our updated guidance ranges, driven by pricing execution and strong performance across end markets. We achieved record revenue in Q4. In our March 2024 earnings call, we said that we expect Micron to be one of the biggest beneficiaries of AI in the semiconductor industry and that we expect to deliver record revenue and significantly improve profitability in fiscal 2025. I'm pleased to report that in fiscal 2025, Micron's revenue grew nearly 50% to a record $37.4 billion, and gross margins expanded by 17 percentage points to 41%. This performance was supported by the ramp of our high-value data center products and our broad-based DRAM pricing strength across end markets. The combined revenue from HBM, high-capacity DIMMs, and LP server DRAM reached $10 billion, more than a fivefold increase compared to the prior fiscal year. Our data center SSD business reached record revenue and market share in fiscal 2025. I want to thank our global Micron team for their focus and execution, which made these results possible. As we enter fiscal 2026, Micron is positioned better than ever.
Our leadership in advanced technologies, including HBM, one gamma DRAM, and g9 NAND, enables a differentiated product portfolio that drives strong ROI. AI-driven demand is accelerating, and industry DRAM supply is tight. Our HBM performance has been strong, and robust demand, tight DRAM supply, and disciplined execution have significantly strengthened the profitability of the rest of our DRAM portfolio. In NAND, our higher mix to data center and improving industry conditions are contributing to profitability. Our fiscal Q1 guidance reflects new records for revenue and EPS. In addition to being a demand driver, AI is also a powerful productivity driver for Micron, contributing to our strong competitive position and financial performance. We are using AI throughout the company across product design, technology development, manufacturing, and other functional growth. We have seen strong adoption and as much as a 30 to 40% productivity uplift in select GenAI use cases such as code generation. In design simulation, AI is accelerating our silicon to systems design cycle to advance modeling and reduce iterations. In manufacturing, we have driven a fivefold increase in wafer images analyzed in the past year and doubled the amount of useful data and telemetry collected and analyzed from our fab tools, all of which improve our yield performance. These AI capabilities enable us to achieve superior product specifications, quality, and time to market at scale.
Turning to technology and operations, we are proud to announce that our one gamma DRAM node reached mature yields in record time, 50% faster than in the prior generation. We are the first in the industry to ship one gamma DRAM and will leverage one gamma across our entire DRAM portfolio to maximize the benefits of this leadership technology. We achieved first revenue from a major hyperscale customer on our one gamma products for server DRAM in the quarter. Our g9 NAND production ramp has been progressing well, while scaling at a pace aligned with market demand. We have ramped our g9 NAND node for both TLC and QLC NAND and have qualified our g9 QLC NAND for enterprise storage. In fiscal Q4, we received a CHIPS grant disbursement following the completion of a key construction milestone for our new high-volume manufacturing fab in Idaho, with the first wafer output expected to begin in 2027. We began design work for our second Idaho manufacturing fab, which will provide additional capacity beyond 2028. In New York, we have completed initial phases of our environmental impact study and continue to work with state and federal authorities towards starting ground preparation. In fiscal Q4, we installed the first EUV tool for our Japan fab to enable one gamma capability, which will complement our existing one gamma supply from our fabs in Taiwan. The time from receiving this tool to completing installation was a record for all EUV tools globally, demonstrating Micron's expertise with this equipment. We plan to continue to invest in our Japan production capability to meet the requirements of the advanced memory technologies of the future. Our continued HPM assembly and test investments position us well to meet growing HBM capacity requirements in calendar 2026. We are making good progress on our Singapore HBM assembly and test facility construction, which is on track to contribute to our HBM supply capability beginning in calendar 2027.
Turning to our end markets, in data center, we now expect calendar 2025 total server units to grow approximately 10%, up from our prior expectations of mid-single-digit percentage growth. The calendar 2025 traditional server growth outlook has strengthened significantly from flat to growth in the mid-single-digit range. We believe this change in outlook is in part related to the growth of AI agents and the traditional server workloads agents initiate as they execute tasks on behalf of users. Continued growth in traditional server applications in enterprises is also contributing to additional demand growth. In addition to traditional servers, AI server growth continues to be very robust. This growth in both traditional and AI servers is driving strong demand for our DRAM products. Data centers require some of our most complex and high-value products, and meeting this demand has presented several opportunities to enhance our product mix and profitability.
In fiscal 2025, Micron's data center business reached a record 56% of total company revenue with gross margins of 52%. Our HPM business has posted many quarters of strong growth. In fiscal Q4, our HPM revenue grew to nearly $2 billion, implying an annualized run rate of nearly $8 billion, driven by the ramp of our industry-leading HBM CE products. We are pleased to note that our HPM share is on track to grow again and be in line with our overall DRAM share in this calendar Q3, delivering on our target that we have discussed for several quarters now. Micron's HPM four twelve high remains on track to support customer platform ramps even as the performance requirements for the HBM four bandwidth and pin speeds have increased. We have recently shipped customer samples of our HMM four with industry-leading bandwidth exceeding 2.8 terabytes per second and pin speeds over 11 gigabits per second. We believe Micron's HPM four outperforms all competing HBM four products, delivering industry-leading performance as well as best-in-class power efficiency. Our proven one beta DRAM, innovative and power-efficient HBM four design, in-house advanced CMOS-based die, and advanced packaging innovations are key differentiators enabling this best-in-class product. For HBM four e, Micron will offer standard products as well as the option for customization of the base logic die. We are partnering with TSMC for manufacturing the HVM four e base logic die for both standard and customized products. Customization requires close collaboration with customers, and we expect HPM four e with customized base logic dies to deliver higher gross margins than standard HPM four e. Our HBM customer base has expanded and now includes six customers. We have pricing agreements with almost all customers for a vast majority of our HBM three e supply in calendar 2026. We are in active discussions with customers on the specifications and volumes for HBM four, and we expect to conclude agreements to sell out the remainder of our total HPM calendar 2026 supply in the coming months.
Micron's LPDD five for servers had over 50% sequential growth in the quarter and reached record revenue. In close collaboration with NVIDIA, Micron has pioneered the adoption of LPDRAM for servers, and since NVIDIA's launch of LPDRAM in their GB product family, Micron has been the sole supplier of LPDRAM to the data center. In addition to our leadership in HPM and LP five, Micron is also well-positioned with our GDDR seven products, which are designed to deliver ultrafast performance with pin speeds exceeding 40 gigabits per second along with best-in-class power efficiency to address the needs of certain future AI systems. In data center NAND, AI-influenced use cases, such as KV cache tiering and vector database search and indexing, are driving demand for performance storage, while AI server growth is driving demand for high-capacity SSDs for capacity storage. Micron is gaining share in these markets with our customer-focused technology leadership, vertical integration, and execution. We strengthened our portfolio with the industry's first g9 NAND data center products, including first-to-market PCIe Gen six SSDs. Near term, we see continued growth in the data center storage market, with HDD supply shortages expected to improve NAND demand and drive a healthier supply-demand environment.
Turning to PCs, the end of life of Windows 10 and greater adoption of AI-enabled PCs are driving an improved PC demand outlook. We now expect PC unit shipments to grow at a mid-single-digit percentage level in calendar 2025 versus our low single-digit percentage growth expectations previously. During the quarter, we achieved our first OEM customer qualification of our 16-gigabit one gamma-based d five and commenced volume shipments. In NAND, we successfully qualified our first g9 NAND SSDs in both performance and mainstream categories with OEM customers. Our strong SSD portfolio enabled us to achieve record client SSD revenue in the quarter and in fiscal year 2025.
Smartphone unit shipment expectations remain unchanged at a low single-digit percentage range in calendar 2025. An increasing mix of AI-ready smartphones continues to be a key catalyst for DRAM content growth in mobile devices. Notably, one-third of the flagship smartphones shipped in calendar Q2 contain 12 gigabytes or more, and given recent product launches from Apple, Samsung, and other smartphone OEMs, we expect this mix to increase over the coming quarters. In fiscal Q4, Micron ceased future mobile managed NAND product development in order to focus our resources and investments on higher ROI opportunities in our portfolio. We will continue to support existing mobile managed NAND products. Micron remains committed to serving the mobile DRAM market with our industry-leading portfolio. In fiscal Q4, we achieved OEM qualification of our first 10.7 gigabit per second one beta second-generation LP five x products at 16 gigabyte and 24 gigabyte capacities.
Turning to auto, industrial, and embedded, in automotive, trends such as ADAS and AI-enhanced in-cabin experiences require significantly higher memory and storage content, making it a higher growth part of the industry. In embedded, we expect physical AI, such as drones, advanced robots, and ARVR, to become a more important driver of demand over time. Automotive and industrial demand strengthened throughout the quarter, exceeding our initial forecast. We are seeing improved profitability in this business with stronger pricing and an increased mix of advanced technology nodes, with greater adoption of d five and LP five products. We continue to see supply constraints in d four and LP four. In June, Micron announced investments in our Virginia facility in an effort to support our long life cycle customers' demand for d four and LP four. Now turning to our market outlook. Customer inventory levels are healthy overall across end markets.
We expect calendar 2025 industry DRAM bit demand growth to be in the high teens percentage range, somewhat higher than our previous outlook. We expect calendar 2025 industry NAND bit demand growth to also be higher than our previous outlook, now in the low to mid-teens percentage range. We expect Micron's calendar 2025 bits to be below industry bit demand growth for non-HPM DRAM and for NAND.
Robust data center demand, including the uptick in server unit growth, has contributed to a tight industry DRAM environment and strengthened NAND market conditions. Additionally, broadening of demand across end markets has also constrained DRAM supply. On the supply side, we expect low supplier inventories, constrained node migration, as industry supports extended d four and LP four end of life, longer lead times, and higher costs globally for new wafer capacity, all to limit the pace of supply growth for DRAM in 2026. In calendar 2026, we anticipate further DRAM supply tightness in the industry and continued strengthening in NAND market conditions. Over the medium term, we anticipate industry bit demand growth of mid-teens CAGR for both DRAM and NAND.
Micron invested $13.8 billion in CapEx in fiscal 2025. As we continue to make one gamma DRAM and HPM-related investments, we expect fiscal 2026 CapEx to be higher than fiscal 2025 levels. DRAM front-end equipment and fab construction will drive higher capital spending in fiscal 2026. Our continued technology node migration to one gamma will provide the majority of our supply growth for DRAM in calendar 2026. As we transition more products to one gamma, our one beta capacity will support HBM growth in 2026. I'll now hand over the call to Mark to provide more color on our fiscal fourth quarter and fiscal 2025 financials.