Overview
- Micron reported on Wednesday that fiscal Q4 revenue reached about $54.23 billion with $33.42 in adjusted earnings per share and it guided Q1 to roughly $61.5 billion and $38.15 EPS, handily above analyst estimates.
- The company said it has expanded long‑term supply agreements to 26 contracts that cover roughly one‑third of revenue through 2030 and include deposits and price collars to lock in customer allocations.
- Micron is committing heavy capital to raise high‑bandwidth memory capacity in the United States with plans for major campuses and fabs in Clay, New York and Boise, Idaho and a multiyear U.S. investment program above $250 billion.
- Despite record 87% gross margins and huge free cash flow that paid down debt and funded buybacks, the stock moved only modestly after the results and trades at a low forward P/E near 6.6, reflecting lingering investor wariness about memory’s boom‑and‑bust cycles.
- The broader significance is that hyperscale AI demand is driving tight global HBM supply and strong pricing now, but the durability of elevated margins will hinge on the timing and scale of new capacity from Micron and rivals and on continued spending by major cloud customers.