Verizon (VZ) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Market trends and financial outlook

• Healthy demand for both DRAM and NAND, with strong data center and consumer market recovery as inventories clear.

• DRAM and NAND pricing trends have improved, with price inflection driven by supply actions and industry discipline.

• Gross margins expected to improve in fiscal Q4, with consumer mix impacting margins but overall positive trajectory.

• No significant impact from tariffs on DRAM or NAND; ongoing monitoring of Section 232 review and U.S. manufacturing incentives.

• Robust demand for HBM and high-capacity DRAM, with cloud and hyperscaler capital spending supporting future growth.

Technology and product developments

• HBM3E 12-high production ramp is progressing well, with crossover to majority demand expected in fiscal Q4.

• 1-gamma DRAM and Gen9 NAND technology ramps are on track, with strong yield learning and performance positioning.

• Data center SSD market share has grown to 15%, with next-gen PCIe Gen 5 SSDs and continued share gains anticipated.

• Vertically integrated platforms and self-designed ASICs are enhancing competitiveness in data center storage.

• HBM supply for 2025 is sold out, with 2026 negotiations underway and positive customer feedback on ramp execution.

Strategic initiatives and organizational changes

• U.S. manufacturing expansion includes projects in Idaho, New York, and Virginia, with customer interest in domestic supply.

• Business unit reorganization to four market-focused segments: high-end computing, core data center, client, and automotive/embedded.

• Future quarterly disclosures will include revenue, gross margin, and operating margin by segment for greater transparency.

• Focus on leveraging green energy and aligning with customer supply chain shifts to the U.S.

• Ongoing engagement with U.S. policy to support semiconductor manufacturing and avoid tariff-related disruptions.