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 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.
Gil Luria of DA Davidson raised Micron Technology's price target to $2,100 from $2,000, the highest on Wall Street, implying 91% upside from its October 1 close of $1,097.39. The stock has already surged 503% over the past year. Micron's fiscal fourth-quarter revenue reached $54.23 billion, up 379%, with adjusted earnings per share of $33.42. The company guided for $61.5 billion in revenue next quarter. Bank of America projects annual buybacks of $60 billion to $100 billion by fiscal 2028 and 2029. Micron holds $68.3 billion in net cash and plans to increase capital returns starting December 9. Goldman Sachs maintains a hold rating with a $1,100 target, whilst consensus targets range from $1,378 to $1,520.
Micron is poised to surpass all Magnificent Seven companies in operating income this quarter, despite having the smallest market capitalisation at roughly $1.1 trillion. The Magnificent Seven includes Microsoft, Google, Apple, Amazon, Meta, Tesla, and Nvidia. The memory chip maker's transformation stems from surging AI-driven demand. Micron beat sales and profit forecasts on Wednesday whilst providing strong guidance. The company added approximately $43 billion in sales compared to the year-ago quarter, with operating margins expanding across all business segments. Shares have climbed 285% year to date, marking a remarkable turnaround for the semiconductor manufacturer.