Micron forecasts revenue above estimates on AI demand
Memory chipmaker Micron Technology has forecast quarterly revenue exceeding Wall Street estimates. The company's customer commitments under long-term supply agreements rose significantly, indicating sustained demand for AI memory chips.
Micron Technology, a memory chip manufacturer, has projected its upcoming quarterly revenue to surpass Wall Street's expectations. The company attributed the forecast to robust demand for memory and storage chips utilized in artificial intelligence applications.
The company reported that customer commitments under its long-term supply agreements increased to $32 billion, up from $22 billion in the previous quarter. This substantial rise in contractual obligations suggests a tightening market for memory chips and continued strong demand.
Micron anticipates that supply and demand conditions for memory and storage will be considerably tighter in fiscal years 2027 and 2028 compared to 2026. The company has also secured agreements for the majority of its high-bandwidth memory (HBM) output for fiscal year 2027.
Micron's shares saw a minor increase of less than 1% in extended trading following the announcement. The company also reported that its fourth-quarter revenue and adjusted profit exceeded analyst estimates, reinforcing the positive outlook.