Chip Maker Micron Splits Into Four Business Units To Accelerate AI Strategy

Micron Technology Inc. (NASDAQ:MU) unveiled an overhaul of its organizational structure aimed at strengthening its position in the fast-evolving artificial intelligence market.

The company is realigning its operations into four new business units, each tailored to meet growing demand for advanced memory and storage solutions across various sectors.

The four units are Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU), and Automotive and Embedded Business Unit (AEBU).

Each unit will be headed by current executives and target specific markets where AI-driven memory and storage demand is surging.

“This reorganization completes our evolution to a market segment-focused business unit structure, with exciting AI-led growth opportunities in every business unit,” said EVP and Chief Business Officer, Sumit Sadana.

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“This structure sharpens our ability to partner deeply with customers and build on our tremendous portfolio momentum with differentiated solutions for all end markets.”

Raj Narasimhan will lead CMBU, catering to hyperscale cloud and high-bandwidth memory needs. Jeremy Werner will head CDBU, serving original equipment manufacturers and data center clients.

Mark Montierth will oversee MCBU, which focuses on mobile and personal computing devices. Kris Baxter takes charge of AEBU, targeting automotive, industrial and consumer applications.

All four units will report to Sumit Sadana, executive vice president and chief business officer. The new business structure will take full effect at the start of the company's fiscal fourth quarter, beginning May 30, 2025.

The decision follows an announcement made Monday by President Donald Trump and his administration stating that electronic products will not be subject to the 145% retaliatory tariffs imposed on imports from China.

 BofA Securities analysts Vivek Arya and Duksan Jang said even if a dire tariff impact happens, Micron has a 30%+ potential upside to historical P/E or PEG multiple at current stock price.

However, yesterday Nvidia said that the U.S. government will start requiring a license to export chips to China.

Micron will report financial results under the new business structure starting with the fourth quarter of fiscal year 2025.

Price Action: MU shares traded lower by 0.50% at $69.03 at last check Thursday.

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