Micron Technology forecast first-quarter revenue of $61.5 billion, beating estimates as the generative AI boom fuels intense demand for high-bandwidth memory. CEO Sanjay Mehrotra reported that customer commitments under long-term agreements have surged to $32 billion, warning that supply-demand conditions will remain tight through fiscal 2028. To address the shortage, Micron is boosting capital spending and expanding global manufacturing sites in the U.S. and Japan.
Financial forecasts and estimates
- ▪Micron Technology forecast first-quarter revenue of approximately $61.5 billion, exceeding analysts' average estimates of $56.8 billion to $57.02 billion
- ▪Micron Technology expects adjusted profit of about $38.15 per share in the first quarter, exceeding analysts' average estimates of $35.40 to $36.02 per share
Fourth-quarter financial results
- ▪Micron Technology reported a fiscal fourth-quarter profit of $37.7 billion, up from $3.2 billion in the same period of the prior year
- ▪Micron Technology reported that its fourth-quarter revenue more than quadrupled to $54.23 billion, beating analyst estimates of $51.07 billion
Surging demand for AI memory
- ▪Micron Technology has seen its orders far exceed capacity as technology giants increase their spending on artificial intelligence infrastructure
- ▪Micron Technology Chief Executive Sanjay Mehrotra stated on September 30, 2026, that industry demand has strengthened since Micron Technology's previous earnings call held in June 2026
- ▪Micron Technology President Manish Bhatia stated that memory has become the chief constraint in artificial intelligence, and data centers are now the largest market for memory and storage
Memory supply and demand outlook
- ▪Micron Technology Chief Executive Sanjay Mehrotra stated that memory and storage supply-demand conditions are expected to be much tighter in fiscal 2027 and 2028 compared to 2026
- ▪Micron Technology has secured agreements for most of its 2027 high-bandwidth memory output
Long-term supply agreements
- ▪Micron Technology's customers increased their financial commitments under long-term supply agreements to $32 billion, up from $22 billion reported in June 2026, with the majority of these commitments in the form of cash deposits
- ▪Micron Technology's remaining performance obligations under long-term supply agreements rose to approximately $150 billion, up from roughly $100 billion in the previous quarter
Capacity expansion and capital spending
- ▪CEO Sanjay Mehrotra said Micron Technology plans to increase its fiscal 2027 capital spending above prior plans to add capacity, following its July 2026 decision to lift planned U.S. investments to over $250 billion through 2035
- ▪Micron Technology President Manish Bhatia acknowledged that it will take a few quarters for Micron Technology's factories to ramp up and have a meaningful impact on the market
High-bandwidth memory market competition
- ▪Micron Technology, based in Boise, Idaho, competes in the global high-bandwidth memory market against South Korean rivals Samsung Electronics and SK Hynix
- ▪Samsung Electronics and SK Hynix currently lead the global market share for high-bandwidth memory
Debatable claims
- ▪Memory is the primary bottleneck for artificial intelligence development
- ▪The current surge in AI infrastructure spending is sustainable
- ▪Micron's aggressive capacity expansion risks creating a future memory chip oversupply
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