Micron Reports Record Revenue Driven by AI Memory Shortage

Micron Technology reported record fiscal fourth-quarter results on September 30, 2026, with revenue surging 379% year-over-year to $54.23 billion. The growth was driven by a global memory shortage and intense demand for high-bandwidth memory (HBM) and advanced DRAM used in AI data centers. The company achieved a non-GAAP gross margin of 87% and adjusted earnings per share of $33.42, both significantly exceeding analyst expectations.

To mitigate the semiconductor industry's traditional boom-bust cycles, Micron signed 26 strategic take-or-pay customer agreements extending through 2030, with some reaching 2031. These contracts secure over 35% of estimated revenue and include $22 billion in customer deposits. CEO Sanjay Mehrotra stated that the company has no line of sight to when supply and demand will return to balance, forecasting tighter conditions through 2028.

To support this growth, Micron is investing approximately $250 billion in new HBM manufacturing campuses in Boise, Idaho, and Clay, New York. The company also plans to spend $25 billion in capital expenditures over the next two quarters to accelerate cleanroom construction. Despite the record results, shares remained relatively flat as investors weighed high valuations and a slight dip in expected margins caused by increased employee incentive compensation.

While the company maintains a bullish outlook, some analysts and investors express caution. Michael Burry placed a bet against the stock via put options, citing a potential AI bubble, while others warned that increasing production capacity in Japan, Singapore, and from competitors like ChangXin Memory Technologies could eventually normalize prices.