Micron: Strong AI Memory Demand, Higher Capex, and HBM4E Ahead

Transcript intelligence

What changed

Compared with the prior quarter, the analysis shifts from record near-term performance and raised guidance to maintained guidance with more emphasis on the next phase of growth: more than 75% of FY27 shipments committed, DRAM and NAND agreements extending through 2030, rising construction capex, and the planned HBM4E launch with NVIDIA.

Guidance delta

Management maintained its outlook. The analysis points to expected FY27 margin expansion from price increases and product mix, while noting that pricing is expected to moderate later.

Key takeaways

• Management described AI and server-memory demand as robust through 2028, with supply constrained by clean-room construction timelines.
• More than 75% of FY27 shipments are already committed, and strategic customer agreements now span DRAM and NAND through 2030.
• Construction capex is increasing to expand future clean-room capacity, while an HBM4E product co-designed with NVIDIA is slated for launch.

Management priorities

• Ramp advanced DRAM nodes and launch the co-designed HBM4E product with NVIDIA
• Expand clean-room capacity and construction spending for new fabs
• Grow strategic customer agreements and increase R&D spending above $1 billion in FY27