Micron's AI-fueled revenue forecast blows past estimates, backlog swells
Micron Technology has reported a significant surge in revenue forecast, exceeding market estimates, driven by a surge in demand for AI memory chips. The company's CEO, Sanjay Mehrotra, revealed that customers have increased their commitments under long-term supply agreements to $32 billion, a notable rise from $22 billion in June.
This commitment, primarily in the form of cash deposits, underscores the growing reliance on high-bandwidth memory for data centers. With the AI boom, Micron, a major supplier to Nvidia, is benefiting immensely. The company anticipates a record year in 2027, with sequential revenue growth each quarter. Its first-quarter revenue is expected to be $61.5 billion, with adjusted profit at $38.15 per share, surpassing analysts' estimates.
Mehrotra also announced plans for over $250 billion in US investments through 2035 to meet the skyrocketing demand for AI infrastructure, with tech giants like Amazon and Alphabet investing heavily. Despite competition from Samsung Electronics and SK Hynix, Micron's robust performance signals the viability of the ongoing AI buildout.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Micron's AI-fueled revenue forecast blows past estimates, backlog swells channelnewsasia.com
