Micron Reports Record Revenue Driven by AI Memory Shortage

Micron Technology reported record fiscal fourth-quarter results on September 30, 2026, with revenue of $54.23 billion and adjusted earnings per share of $33.42, both significantly exceeding analyst expectations. The surge was driven by a global memory shortage and intense demand for high-bandwidth memory (HBM) and advanced DRAM used in AI infrastructure. The company's data center business grew over 1,000% year-over-year, contributing to a non-GAAP gross margin of 87%.

To stabilize revenue against the industry's traditional boom-bust cycles, Micron shifted toward a multi-year contract model. The company secured 26 strategic take-or-pay customer agreements extending into 2031, resulting in remaining performance obligations of approximately $150 billion. Management noted that over 75% of output for 2027 is already committed, with supply-demand conditions expected to remain tighter through 2028.

To support this growth, Micron is investing approximately $250 billion in new manufacturing capacity, including HBM campuses in Clay, New York, and Boise, Idaho, as well as new facilities in Japan and Singapore. The company also increased its quarterly dividend by 30% to $0.15 and plans to return 100% of excess cash to shareholders over time.

Despite the record results, shares remained flat following the report. Analysts attributed this to the news being priced in and a slight dip in expected margins caused by increased employee incentive compensation used to resolve labor tensions in Taiwan. While most financial institutions maintain bullish outlooks, investor Michael Burry bet against the stock with put options, citing a potential AI bubble.