Micron shares rose 3.0% after earnings. Management pointed to stronger demand and tight supply extending through 2028, while saying it has no line of sight to when supply and demand will balance.
- More than 75% of Micron’s fiscal 2027 shipments are committed, which management cited as evidence of strengthening demand.
- Management expects server-unit growth to continue into 2027 and cited agentic AI as an additional source of CPU-driven demand.
- Supply growth remains constrained by diminishing technology-transition gains, HBM’s growing share of output and higher trade ratios for future HBM products.
- Management expects fiscal 2027 margins to expand over the balance of the year versus Q1, supported by continued, though more moderate, price increases and product mix; start-up costs are a partial offset.
- Micron has significantly increased HBM pricing for calendar 2027 to narrow the profitability gap with conventional DRAM, but did not update its HBM market-size outlook.
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