Micron Technology designs and manufactures memory and storage products, including DRAM, NAND, and NOR flash. These products power devices across computing, networking, automotive, industrial, and mobile markets. The company sells to OEMs, distributors, and end users worldwide and funds ongoing research and development to meet evolving needs. Micron aims to provide scalable memory solutions and maintain an inclusive, growth‑oriented workplace for its employees.
Company Size
10,001+
Company Stage
IPO
Headquarters
Boise, Idaho
Founded
1978
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Micron Technology reported strong fiscal fourth-quarter results, with adjusted earnings of $33.42 per share and revenue of $54.23 billion, up from $41.46 billion the previous quarter. Management guided first-quarter revenue to $61.5 billion. The memory-chip manufacturer has garnered 25 Buy ratings from analysts, capitalising on growing AI infrastructure demand. Goldman Sachs remains the sole holdout with a neutral rating, despite raising its price target from $1,100 to $1,250. Goldman analyst James Schneider cites concerns about potential oversupply beyond 2028, as strong memory prices could motivate manufacturers to increase capacity. Micron has expanded key client agreements from 16 to 26, representing approximately 35% of projected revenue through fiscal 2030, with around 75% including structured price clauses. The question remains whether memory manufacturers can maintain supply discipline to support profit growth.
Micron Technology closed at $1,065.11 on 30 September, valuing the company at roughly $1.2 trillion. The memory chip maker reported fiscal 2026 net income of $84.97 billion, putting its equity value at about 14 times annual earnings. The company generated $133.19 billion in annual revenue, with its final quarter producing $54.23 billion and an 86.8% GAAP gross margin. However, a 10-percentage-point reduction in gross margin would remove roughly $13.32 billion of gross profit. Management announced 26 take-or-pay agreements covering over 35% of estimated revenue through 2030. Micron produced $89.68 billion of fiscal 2026 operating cash flow, with adjusted free cash flow of $62.31 billion after $27.37 billion of net capital expenditure, yielding approximately 5.2% on equity value.
Micron Technology reported record fourth-quarter revenue of $54.23 billion, beating Wall Street's estimate of $51.07 billion. The chipmaker's data centre business surged eleven-fold to $18 billion, driven by demand for memory chips used in AI servers. However, this boom is creating a supply shortage affecting consumer electronics. Micron produces DRAM and NAND chips found in phones, laptops, and other devices. As data centres purchase most available supply, prices for these chips have risen by double-digit percentages in recent months. The shortage is expected to continue until late 2028. Since manufacturers like Apple and Samsung must pay more for memory chips, consumers will likely see higher prices for electronics. Micron's shares have risen over 500% in the past year, with the company's market cap exceeding $1.2 trillion.
Micron reported fiscal fourth-quarter revenue of $54.23 billion, up 379% year-over-year, with adjusted earnings of $33.42 per share beating analyst expectations. Full-year revenue reached $133.19 billion, up 256%. CEO Sanjay Mehrotra said memory chip supply will remain tight through fiscal 2027 and 2028, with no clear timeline for when supply will meet demand. The company has signed 26 strategic customer agreements worth $32 billion, expected to cover 35% of revenue through 2030. Micron projects capital spending of roughly $11.5 billion this quarter and about $25 billion across the first half of fiscal 2027. New facilities are under construction in Idaho, New York, Taiwan, Singapore, and Japan. The shortage has driven up consumer prices, with DDR5 RAM prices more than doubling. Apple's iPhone 18 Pro launched with a $100 price increase.
Tesla has redesigned its AI5 chip to use 96GB of RAM instead of the originally planned 144GB, a reduction of one-third. Elon Musk stated this was "the only way to get enough volume for Optimus production" and reduces costs. The redesign indicates the memory shortage has spread beyond data centres into robotics. Micron Technology's chief financial officer Mark Murphy said he has "no line of sight" for when the current memory shortage will ease. Micron's gross margin increased from 2.7% in fiscal 2023 to 80.7% in fiscal 2026. Consensus from 35 analysts expects Micron's revenue to reach approximately $275 billion in fiscal 2027, up from $133 billion in fiscal 2026. The main risk is that other chip designers may follow Tesla's example and find they need less memory than anticipated.