Micron’s AI-fueled revenue forecast blows past estimates, backlog swells
Fourth-quarter revenue more than quadrupled to US$54.23 billion, beating estimates
Micron Technology reported a staggering fourth-quarter revenue of US$54.23 billion, significantly exceeding analysts' estimates of US$51.07 billion. The company anticipates that fiscal 2027 and 2028 will face tighter memory and storage supply and demand conditions, with CEO Sanjay Mehrotra highlighting memory as the main constraint in AI development.
Customer commitments under long-term supply agreements surged to US$32 billion, with many payments in the form of cash deposits. CEO Mehrotra revealed that most of these commitments are set to increase further. Micron's CEO and President Manish Bhatia discussed the impact of data centers being the largest market for memory and storage, and Micron's plans to invest over US$250 billion in AI infrastructure by 2035.
The CEO and COO emphasized the company's expansion of capacity across their global sites, including new facilities in Japan and the United States, with first silicon wafer output expected in mid-2027. Micron's performance obligations under supply agreements have risen to approximately US$150 billion, up from around US$100 billion in the previous quarter.
The finance chief, Mark Murphy, expects fiscal 2027 to be another record year with sequential revenue growth each quarter, targeting first-quarter revenue of US$61.5 billion.
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- Micron's AI-fueled revenue forecast blows past estimates, backlog swells channelnewsasia.com
