Micron Technology closed its fiscal year with record results and issued another above-consensus revenue forecast, reinforcing the scale of the memory-chip boom tied to artificial intelligence infrastructure.
The company reported fiscal fourth-quarter revenue of $54.23 billion, up sharply from $11.32 billion a year earlier. Adjusted earnings came in at $33.42 a share, also above Wall Street expectations.
AI data centers are reshaping Micron’s business
Demand for high-bandwidth memory and other products used in AI servers has become a central growth driver for Micron. Reuters reported that the company’s long-term supply agreements have increased to $32 billion from $22 billion in June, with customers committing cash deposits to secure future output.
Micron said most of its 2027 production is already covered by customer agreements. Management expects supply-demand conditions to become even tighter in fiscal 2027 and 2028 as data-center operators compete for memory capacity.
First-quarter guidance tops estimates
For the current quarter, Micron projected revenue of about $61.5 billion, with a range of $60 billion to $63 billion. The forecast was above analyst expectations and would set another quarterly revenue record if achieved.
The company is responding with heavy capital spending. Micron plans to invest in additional U.S. and international manufacturing capacity, while continuing development of next-generation DRAM and high-bandwidth memory used in AI accelerators.
Memory becomes a constraint for the AI buildout
The results add to evidence that memory, once viewed as a more cyclical commodity segment of semiconductors, has become a strategic bottleneck in the AI supply chain. Nvidia and other accelerator providers rely on large amounts of high-performance memory to deliver faster model training and inference.
Micron’s outlook suggests that the supply shortage will not ease quickly. For investors, the next questions are how rapidly new capacity can come online and whether record pricing and demand can be sustained as hyperscalers continue to expand data-center budgets.
Sources: Micron Technology investor relations (primary source); Reuters; The Wall Street Journal.
