No Single Customer Accounts For 10% Of Micron's Sale…

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From 17% to below 10%

The report doesn’t name the customer. It just says the 17% customer’s purchases in fiscal 2025 were mostly in the cloud memory business unit. This unit sells memory to big cloud computing companies, and high-bandwidth memory for artificial intelligence systems to all data center customers.

It’s worth noting that no customer hit 10% of revenue in fiscal 2023, either. One did in fiscal 2024, at 10%, and one reached 17% the next year.

In dollars, 17% of fiscal 2025’s $37.4 billion in revenue comes to around $6.4 billion from a single customer.

Did that customer buy less?

The 17% customer ly didn’t cut its spending.

Micron’s quarterly report for its fiscal third quarter said one customer, again mostly in the cloud memory unit, made up 10% of revenue in the first nine months of fiscal 2026. Revenue in the nine months was around $79 billion, so the customer spent close to $8 billion.

The filings don’t say directly that it’s the same buyer. But if it is, it spent more with Micron in nine months than it did in all of fiscal 2025, and its dropped only because everyone else’s purchases grew faster.

Showing how broad the growth was, all four of Micron’s business units more than tripled their revenue in fiscal 2026. The cloud memory unit’s revenue climbed 219% to $43.1 billion. The core data center unit, which sells data center storage plus memory for server makers, grew 420% to $37.6 billion. Mobile and client revenue climbed 209% to $36.6 billion, and automotive and embedded revenue rose 234% to $15.9 billion. So the cloud memory unit’s of total revenue dipped to 32% from 36%, after jumping from 15% in fiscal 2024.

Micron still depends on a few big buyers

Micron’s top 10 customers provided over half of its revenue in fiscal 2026, just as they did the year before. And data centers accounted for around 60% of revenue, up from about half in fiscal 2025.

The top-10 number comes to an average of over $6.6 billion a customer — more than the single biggest customer spent in fiscal 2025.

But I think the data center number is the concentration that matters most today. A decline in capital spending for data centers might cut orders from many of Micron’s largest buyers all at once.

Plus, most of the year’s growth came from price. Micron said average selling prices of DRAM, the memory chips that make up most of its sales, climbed around 180% in fiscal 2026, but the volume it shipped grew by a percentage in the mid-20s. Higher prices are also mainly why net income rose nearly tenfold, to about $85 billion.

Micron Technology Stock Quote

NASDAQ: MU

Micron Technology

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(-3.62%) $-35.84

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$1.1TMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.

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$928.88 – $953.45

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True, Micron has tried to lock in demand. By its Sept. 30 earnings call, it had signed 26 multi-year deals that require customers to buy set volumes, backed by $32 billion of financial commitments. But it estimates those agreements cover over 35% of its revenue through 2030, which still leaves a big part of its sales outside them.

Investors might already see these risks. Micron’s earnings per grew to $74.33 in fiscal 2026 from $7.59 the year before, but the stock costs only around 13 times those earnings. With a price-to-earnings ratio so low after a year that, investors seem to expect that profit could fall once memory prices do.

In the end, I’d call the customer change an improvement, though a small one. Micron is less exposed to any single buyer than it was a year ago. But it’s arguably more exposed to data center spending and memory prices than it was, and they are still the biggest risks in the stock.

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About the Author

Daniel Sparks

Daniel Sparks is a contributing Motley Fool stock market analyst covering technology, industrials, financials, and consumer goods. Daniel is the owner and chief investment officer of Sparks Capital Management. He holds a master’s degree in business administration from Colorado State University. The Globe and Mail profiled him and his investing philosophy in an article titled, “This stock picker is outperforming nearly everybody else. Here’s how he is doing it.”

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