Micron's revenue nearly quintupled in a year as AI data centres soak up every memory chip it can make. Prices are rising, margins are near 87%, and most of the next year's supply is already sold. Memory, once a boom-and-bust commodity, is now behaving like a scarce strategic asset.
Micron's revenue nearly quintupled in a year as AI data centres soak up every memory chip it can make. Prices are rising, margins are near 87%, and most of the next year's supply is already sold. Memory, once a boom-and-bust commodity, is now behaving like a scarce strategic asset.
- Fiscal Q4 2026 (quarter ended September 2026) revenue: $54.23bn, up 379% from $11.32bn a year earlier, and its sixth straight quarterly record.
- Fiscal 2026 revenue: $133.2bn, up 256%; diluted EPS up 811% to $75.52.
- Adjusted EPS of $33.42 beat estimates; adjusted gross margin reached 87.0%.
DRAM brought in $39.8bn (73% of sales), with prices up by a high-teens percentage quarter on quarter. NAND brought in $14.1bn, with prices up about 30%.
Supply is pre-sold: more than 75% of fiscal 2027 shipments are covered by agreements, and most calendar 2027 HBM supply is contracted at higher prices. However, management expects conditions to be much tighter in fiscal 2027 and 2028, and says customers are holding back memory in AI systems because of shortages.
Micron is the only US-based maker of high-bandwidth memory (HBM) and is working with Nvidia on a custom HBM design.
The stock slipped after hours as investors weighed heavier capex plans against the beat.
WBW angle: in the AI build-out, the bottleneck has moved from processors to memory, and pricing power follows the bottleneck.