Micron Technology Reports Record Revenue Amid AI Chip Demand

Micron Technology reported fiscal Q4 revenue of $54.23 billion, representing a 379.27% year-over-year increase. The company's stock price has risen over 220% year-to-date, fueled by massive demand for high-bandwidth memory (HBM) chips used in AI clusters alongside NVIDIA GPUs. The company reported non-GAAP EPS of $33.42 and has already committed more than 75% of its fiscal 2027 shipments.

To secure long-term growth, Micron signed 26 Strategic Customer Agreements extending through 2030 and is currently co-designing an HBM4E product with NVIDIA to increase premium-margin growth. Management claims its technology is "at least two nodes ahead of the China competition."

Despite these record earnings, the stock trades at a lower earnings multiple than peers such as SanDisk and NVIDIA, which analysts attribute to the cyclical nature of the memory market. Market risks include potential Chinese domestic production increases or a slowdown in AI spending, which could lead to a market glut.