Micron lifts outlook on AI memory demand

Micron Technology reported fiscal fourth-quarter 2026 revenue of $54.23 billion, exceeding market expectations. Adjusted earnings per share for the period came in at $33.42, also above forecasts. Net income rose to $37.7 billion, or $32.87 per share, compared with $3.2 billion a year earlier. The company said the quarter reflected robust demand tied to artificial intelligence and data-center infrastructure.

DRAM was the primary growth engine in the quarter, generating $39.8 billion in revenue and accounting for 73% of total sales. Management emphasized that Micron remains the only U.S.-based producer of high-bandwidth memory, a category identified as important for AI workloads. The company noted that both its high-bandwidth memory and data-center solid-state drive product lines are expanding faster than its overall revenue base.

Company executives linked the strong fourth-quarter performance to soaring demand for AI infrastructure and related memory needs. High-bandwidth memory and data-center SSDs were highlighted as key beneficiaries of this trend, with growth outpacing the broader business. These products are positioned within the most data-intensive segments of the market, aligning Micron closely with AI and cloud deployments.

Management said Strategic Customer Agreements and take-or-pay contracts are supporting the durability of demand across these categories. Such arrangements are designed to secure long-term volume commitments and provide better visibility into future revenue. The company indicated that these structures, combined with AI-driven needs, are contributing to a strong order backlog.

For the fiscal first quarter of 2027, Micron guided revenue to about $61.5 billion, plus or minus $1.5 billion. The company also projected adjusted EPS of $38.15, plus or minus $1.00. This outlook implies continued strength in memory demand as AI and data-center investment remains elevated.

Management stated that high-bandwidth memory and data-center SSD businesses are expected to keep growing faster than overall company revenue into the new fiscal year. The emphasis on AI-related products suggests the current demand cycle remains in effect. Following the release of the quarterly results and guidance, Micron shares rose slightly in extended trading, reflecting investor response to the AI-fueled performance and forecast.