Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Negative Points
Q & A Highlights
Q : Should we expect gross margin improvements starting in fiscal Q4 and potentially beyond? A : Mark Murphy, CFO, explained that while Q3 margins are down due to a higher mix of consumer-oriented volumes and lower pricing, conditions have improved. He anticipates gross margins to rise somewhat in Q4, driven by improved market conditions and growth in high-value products like HBM, despite ongoing NAND underutilization challenges.
Q : What is driving the increased industry bit demand outlook for DRAM in calendar 2025? A : Sanjay Mehrotra, CEO, noted that improved customer inventory levels, increased AI implementation in smartphones and PCs, and strong data center demand, particularly for HBM and high-density DIMMs, are contributing to the higher bit demand outlook.
Q : Can you provide details on the fiscal Q3 guidance, specifically the revenue growth from DRAM versus NAND? A : Mark Murphy stated that while both DRAM and NAND are expected to see bit growth, the revenue growth bias is towards DRAM due to HBM and data center exposure.
Q : How sustainable are the current industry pricing dynamics, and are recent memory price improvements driven by true demand? A : Sanjay Mehrotra highlighted that improved demand trends in smartphones and PCs, driven by AI adoption, along with tight leading-edge DRAM supply and supply actions in NAND, are creating a favorable demand/supply environment. This supports sustainable pricing improvements.
Q : How will the transition from HBM3E 8-high to 12-high impact gross margins? A : Sanjay Mehrotra explained that while HBM3E 12-high is more complex, it carries a premium over 8-high and is expected to be accretive to DRAM margins. The company is focused on ramping 12-high capacity and yield, with the majority of shipments shifting to 12-high in the second half of the calendar year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
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