BOISE, Idaho — Micron Technology expects stronger-than-anticipated revenue in its coming quarter as demand continues to grow for memory products supporting artificial intelligence infrastructure.
The company said customer commitments under long-term supply agreements had risen to $32 billion from $22 billion in June. Micron management also expects supply and demand conditions for memory and storage to become substantially tighter in fiscal 2027 and 2028 than they were in 2026.
The Boise-based company has benefited significantly from the expansion of AI infrastructure, with high-bandwidth memory becoming increasingly important to data centers. Micron is a key supplier to Nvidia, whose processors are widely used for AI computing.
Micron forecast fiscal first-quarter revenue of $61.5 billion, plus or minus $1.5 billion. The projection was above the average analyst estimate of $57.02 billion compiled by LSEG.
The company also projected adjusted profit of $38.15 per share, with a possible variation of $1, exceeding the analyst estimate of $35.40.
The forecast follows a strong fourth quarter in which revenue more than quadrupled to $54.23 billion, surpassing the $51.07 billion analyst estimate. Adjusted profit reached $33.42 per share, compared with expectations of $31.61.
Micron executives said customer orders are exceeding the company’s available production capacity. The company plans to expand production at facilities around the world, including new sites in Japan and the United States.
Micron has said it expects initial silicon wafer production from the new capacity in mid-2027. Executives cautioned, however, that new facilities will require several quarters before making a significant contribution to overall market supply.
The company also reported that remaining performance obligations under its long-term agreements had climbed to approximately $150 billion, compared with roughly $100 billion in the previous quarter.
Micron has increased its planned U.S. investment to more than $250 billion through 2035. The company said it expects fiscal 2027 to produce another record year, with revenue increasing sequentially in every quarter.
The broader AI investment cycle is also supporting demand for memory and other computing components. Amazon, Alphabet and other technology companies are expected to spend more than $730 billion on AI infrastructure during 2026, increasing demand from large-scale data centers.
Micron said it has agreements covering most of its 2027 high-bandwidth memory output and plans to raise fiscal 2027 capital spending as it works to expand production capacity.
Original article
Comments