Micron CEO: Memory market supply-demand will be tighter in 2027-2028 than 2026; FY2027 Q1 revenue to reach $61.5 billion

PANews, October 1 - According to Sina Finance, Micron Technology (MU.O) Chairman and CEO Sanjay Mehrotra said on the earnings call that Micron has signed 26 long-term agreements, locking in about $150 billion in long-term orders. The memory market supply-demand balance in 2027 and 2028 will be tighter than in 2026, and "there is no end in sight to the supply-demand rebalancing." FY2027 Q1 revenue will reach $61.5 billion, with EPS of $38.15, continuing to climb quarter-over-quarter. He also clearly noted that this quarter will be the low point for gross margin in FY2027, with gross margin expected to gradually recover in subsequent quarters.

Micron Technology (MU.O) expects capital expenditures of about $25 billion in the first half of FY2027, with the second half even higher, and most of the increase will go toward new fab construction (building expenditures) rather than pure equipment purchases. Mark Murphy explained that this is entirely because the long-term agreements provide sufficient demand visibility, and building new greenfield fabs requires an extremely long lead time.