Micron Technology Scrambles to Meet Soaring Memory Demand — Update

By Katherine Hamilton

Micron Technology logged another quarter of growth as climbing demand for its memory products drove revenue higher.

The Boise, Idaho, company's 46% jump in revenue during the fiscal fourth quarter was mainly driven by its cloud memory business, as AI developers turn to the company for memory storage. Demand for Micron's DRAM and NAND memory products is higher than management previously expected, Chief Executive Sanjay Mehrotra told analysts Tuesday, helping to boost its outlook for the current quarter ahead of expectations.

Higher DRAM pricing due to limited inventory and NAND's improving profitability are expected to improve margins from the first quarter to the second, management said.

"What I will tell you is that supply is tight," Mehrotra said. "We expect a healthy demand-supply environment in 2026 for overall DRAM, and that bodes well for profitability."

Micron's revenue climbed to $11.32 billion in the quarter ended in August, ahead of the $11.22 billion Wall Street was forecasting. Sales in the cloud memory business more than tripled to $4.5 billion.

DRAM bit shipments increased, driven by strong demand across all end markets, and prices rose driven by limited supply, executives said. Supply is also being pressured due to low inventories and constrained node migration. Those trends are expected to continue into 2026, Mehrotra said.

In the current quarter, Micron expects revenue of $12.5 billion, plus or minus $300 million, and a midpoint of $3.75 per share in adjusted earnings. Analysts were projecting $11.91 billion in revenue and $3.10 in adjusted earnings per share.

Micron has been ramping up its investments to build up its supply. After spending $13.8 billion this year, the company intends to have an even higher capital expenditure in 2026, Mehrotra said, though he did not disclose an exact number. The vast majority of capital expenditures in 2026 will go towards DRAM, he said.

The company plans to spend $4.5 billion in the current quarter. That number is a baseline for what investors can expect each quarter, though spending may fluctuate from period to period, Chief Financial Officer Mark Murphy said.

Micron said earlier this year it plans to invest more than $200 billion in semiconductor manufacturing in the U.S., which will mostly go towards bolstering its dynamic random access memory, or DRAM, manufacturing.

Micron posted a profit of $3.20 billion, or $2.83 a share, compared with $887 million, or 79 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $3.03, ahead of the $2.86 anticipated by analysts, according to FactSet.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

September 23, 2025 18:34 ET (22:34 GMT)