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Micron CEO Sanjay Mehrotra said demand will outstrip supply for DRAM and NAND through 2027 and 2028, even tighter than in 2026, with most of next year's capacity already sold. Despite planned shipment growth in the low-to-mid 20% range, the company says it has no visibility into when supply and demand will balance, while forecasting record fiscal-quarter revenue of $61.5 billion and an 86.25% gross margin.
Micron CEO Sanjay Mehrotra told investors that demand for the company's memory will outstrip supply for at least the next couple of years, driven by business sales of high-bandwidth memory and DRAM for AI and servers. He said 75% of Micron's 2027 output is already committed, with most current sales talks focused on 2028, and new clean rooms won't open until 2028 with only gradual production ramp-up afterward. Samsung executives reportedly made similar comments this week about a prolonged memory shortage.
Micron reported quarterly results that Jim Cramer called a 'great quarter,' but the stock dropped anyway amid concerns over its gross margin outlook and increased capital spending plans. Cramer noted Micron now has 26 strategic customer agreements, up from 16 last quarter, giving it better visibility into future demand, and he remains positive on the company's long-term outlook despite near-term stock weakness.
Micron's FY27 guidance states that demand from humanoid robots and other physical AI devices could outpace data centers as a driver of memory and storage demand. CEO Sanjay Mehrotra said each humanoid robot needs roughly 200GB of DRAM and several terabytes of storage, and that current memory demand already exceeds supply by about 50%. The company expects new cleanroom capacity to be insufficient to ease the shortage soon.
During its FY2026 earnings call, Micron said RAM and NAND shortages will intensify through 2027 and 2028, with CEO Sanjay Mehrotra stating demand will keep outpacing supply despite planned shipment growth in the low-to-mid 20% range. The company also guided for record FQ1 revenue of $61.5 billion and an 86.25% gross margin, implying over $53 billion in gross profit and projected EPS of $38.15 per share.
Micron's chief executive said that memory chip supply will remain constrained for longer than previously expected, with shortages projected to worsen in 2027 and 2028 compared to this year. The remarks come as Micron and rivals Samsung and SK Hynix have all pointed to tight DRAM and NAND supply amid surging demand from AI infrastructure buildouts.
Micron Technology reported fiscal fourth-quarter results that exceeded Wall Street expectations on both revenue and earnings, driven by an 11-fold jump in data center revenue. The chipmaker also issued stronger-than-expected guidance for the current quarter, though shares dipped slightly in premarket trading despite the beat.
Micron has filed a lawsuit against China's YMTC, claiming the company recruited former Micron engineers who then patented inventions closely mirroring work they did at Micron. Micron alleges these employees left citing personal reasons, kept their new roles off LinkedIn, and were bound by confidentiality agreements they broke, and that YMTC later used the resulting patents to accuse Micron of infringement in multiple jurisdictions.
Micron reported that its DRAM revenue climbed 343% compared with the same period last year, driven by rising memory prices and strong demand. The company is the only U.S.-based manufacturer of high-bandwidth memory, a chip type increasingly used in AI systems.
Micron reported fiscal fourth-quarter revenue of $54.23 billion, up 379% year-over-year and ahead of the $51.07 billion analysts expected, with adjusted earnings per share of $33.42 versus a $31.61 forecast. The company said tight supply conditions for memory chips, driven by AI demand, should persist and even intensify into fiscal 2027.
Micron beat Wall Street expectations with adjusted earnings of $33.42 per share and revenue of $54.23 billion, nearly quadruple the figure from a year earlier. The chipmaker guided for roughly $61.5 billion in revenue and $38.15 in adjusted earnings per share next quarter, topping analyst estimates. DRAM revenue, its largest segment, rose 343% year-over-year to $39.8 billion.
Nvidia stock climbed near its all-time high of $236.54 set in May, having risen 15% over the past three months even as other AI-related stocks lagged. CoreWeave separately announced plans to deploy Nvidia's upcoming Vera Rubin chip platform in its data centers. Micron shares also rose ahead of its Wednesday evening earnings report, with investors anticipating strong results driven by tight memory supply.