Micron's AI-fueled revenue forecast blows past estimates, backlog swells
Micron Technology has reported quarterly revenue exceeding expectations, with customers committing to a total of $32 billion in long-term supply agreements, highlighting a robust demand for AI memory chips. This surge in high-bandwidth memory, essential for data centers, benefits companies like Micron, a major supplier to Nvidia.
The company has witnessed orders surpassing its capacity, prompting a $250 billion investment increase in the United States through 2035 as tech giants like Amazon and Alphabet invest heavily in AI infrastructure. CEO Sanjay Mehrotra announced that customers have significantly raised their financial commitments under long-term supply agreements, now totaling $32 billion compared to $22 billion in June, with most payments in the form of cash deposits.
Adjusted profit for the first quarter is expected to be $38.15 per share, surpassing analyst estimates of $35.40. Mehrotra anticipates that fiscal 2027 will be another record year with sequential revenue growth each quarter.
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- Micron's AI-fueled revenue forecast blows past estimates, backlog swells channelnewsasia.com
