Micron's Sumit Sadana on AI: A Multi-Year Opportunity

Micron Technology is ramping up its focus on data centres and artificial intelligence (AI) as part of a strategic shift from product-oriented to market segment-oriented business units, according to Sumit Sadana, the company’s executive VP and chief business officer. This move is driven by the increasing demand for AI-driven solutions and the potential for significant productivity gains.

Micron is well positioned to increase its resources towards data centres and offer end-to-end capabilities to serve AI in various sectors. Sadana notes that AI is transitioning into a monetisation stage as corporations worldwide assess the opportunities for productivity gains through AI. Foundation models are becoming smarter, enabling software companies to create powerful, scalable applications. These applications can be deployed to thousands of employees, significantly boosting productivity.

Vertical market applications are also on the rise, dramatically increasing the inferencing workload on data centres. This is leading to a surge in investments in data centres, a positive trend for Micron. Beyond inferencing, the company is focusing on bringing new innovations to the edge, including smartphones and PCs. These devices will require more DRAM, higher performance memory, and greater memory capacity, driving significant growth in the memory market over the next several years.

Industrial and automotive markets are expected to see substantial growth driven by AI. Robotics, in particular, is poised to be a massive driver of growth, potentially dwarfing many mega industries today. Micron is excited about the long-term potential of robotics. The company also anticipates an acceleration in demand from autonomous driving in automobiles over the next five years.

AI presents a multi-year opportunity for Micron, with potential bumps along the way but a robust long-term growth trajectory. This outlook is supported by Micron's strong financial performance, including a record $9.30 billion in revenue for its fiscal third quarter of 2025. The company has also projected revenue guidance of $10.7 billion for the next quarter.

Micron’s semiconductor assembly, testing, marking, and packaging (ATMP) facility in Sanand, Gujarat, is progressing towards cleanroom validation. The cleanroom, a highly controlled environment, is essential for minimising airborne particles that could compromise sensitive processes. The first phase of the project will cover half a million square feet, with a combined investment of up to $2.75 billion from Micron and government entities.