Overview
- Micron reported an outsized quarter and said tight memory-market conditions could persist into 2028 while guiding to roughly $50 billion in revenue for the next quarter.
- DRAM made up about 76% of Micron’s recent sales, leaving the company especially exposed to high-speed memory demand from servers and GPUs.
- Industry capacity expansions are multi-year projects and are not expected to materially ease supply before 2027, a dynamic that has pushed DRAM and NAND prices higher.
- Large cloud and AI operators are driving demand, with published estimates of roughly $650 billion in data-center capital spending this year and the potential for more than $1 trillion next year.
- Investors have sharply re-rated Micron this year, lifting the stock, but analysts say structural differences between memory suppliers and GPU makers make a direct comparison with Nvidia unlikely even if Micron keeps growing.