Micron Sees Tighter Memory Supply Through 2028 as AI Demand Drives Spending
The chipmaker expects $61.5 billion in fiscal first-quarter revenue and plans about $25 billion in capital spending during fiscal 2027’s first half.
Micron expects memory and storage supply-demand conditions to tighten further in 2027 and 2028, extending pressure on the chips used in artificial-intelligence infrastructure and other computing systems.
Micron Chairman and CEO Sanjay Mehrotra said the company sees demand exceeding supply in 2027 and 2028, with no clear endpoint for a return to balance.
Micron projected fiscal first-quarter revenue of $61.5 billion and earnings of $38.15 per share. The company said the quarter is expected to mark the low point for fiscal 2027 gross margin, which should improve sequentially afterward.
The company has signed 26 long-term agreements covering about $150 billion in long-term orders. Micron expects fiscal 2027 capital spending of about $25 billion in the first half, with spending higher in the second half. Most of the incremental investment will fund construction of new wafer-fabrication plants rather than equipment purchases.
Micron’s fiscal 2026 fourth-quarter revenue reached $54.23 billion, while its fiscal 2027 first-quarter outlook reflects continued demand for memory and storage products.
