MU · Forward model · Automotive and Embedded · Bull case
What has to happen in Automotive and Embedded
Model as of
This page changes Automotive and Embedded inside the complete MU model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.
Shares this vertical and portfolio case. Slider and horizon edits stay in your browser.
Automotive and Embedded
Basis quarter$4.63B
Final quarter$14.32B
Implied CAGR+25%
Final revenue mix14%
Memory designed into cars, industrial equipment and robots. Small, slow and by far the most stable line Micron has — design wins last for years and prices move on contracts rather than on spot.
Last four quarters
2025 Q4
$1.43B
Reported
2026 Q1
$1.72B
Reported
2026 Q2
$2.71B
Reported
2026 Q3
$4.63B
Reported
Automotive DRAM and UFS NANDIndustrial and embedded memoryRobotaxi and ADAS platformsLong-lifecycle industrial supply
Sequential growth
+8.0%/qtr
decaying toward +1.5%
8% a quarter to start, carrying the same contract resets the other lines get, from a much smaller base.
Automotive and Embedded
Latest: $14.32B (2031Q3E)
| Period | Value |
|---|---|
| 2025Q3 | $1.13B |
| 2025Q4 | $1.43B |
| 2026Q1 | $1.72B |
| 2026Q2 | $2.71B |
| 2026Q3 | $4.63B |
| 2026Q4E | $5.10B |
| 2027Q1E | $5.56B |
| 2027Q2E | $6.00B |
| 2027Q3E | $6.44B |
| 2027Q4E | $6.86B |
| 2028Q1E | $7.29B |
| 2028Q2E | $7.71B |
| 2028Q3E | $8.14B |
| 2028Q4E | $8.57B |
| 2029Q1E | $9.01B |
| 2029Q2E | $9.46B |
| 2029Q3E | $9.93B |
| 2029Q4E | $10.41B |
| 2030Q1E | $10.90B |
| 2030Q2E | $11.42B |
| 2030Q3E | $11.95B |
| 2030Q4E | $12.51B |
| 2031Q1E | $13.09B |
| 2031Q2E | $13.69B |
| 2031Q3E | $14.32B |
Assumptions & reasoning
- The one line carried on a plain growth rate, and the only one where that is the honest choice: automotive memory is sold on multi-year design wins at contracted prices, so there is no meaningful bit-versus-price tension to model.
- It has still quadrupled in four quarters, which means it is not as insulated from the spot market as the design-win story suggests. Terminal growth of 1% a quarter says the model does not believe that rate survives.
- At 11% of revenue this line cannot decide the valuation. It is carried in full because it is a disclosed business unit, and because it is the only part of Micron that would still be growing in a downcycle.
- Margins here glide down least — 79% to 45% — because contract pricing falls slower than spot in both directions. That is also why this unit's margin was the lowest of the four on the way up.