Micron forecasts strong quarterly results on soaring memory chip demand

Micron forecast quarterly profit and revenue well above expectations on Wednesday, with customers committing $22 billion to secure future memory chip supply, sending shares up 12% in after-hours trading. The strong demand is driven by AI-related shortages, and CEO Sanjay Mehrotra said tight conditions are expected to persist beyond 2027.

Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in future supply of memory chips, sending its shares surging 12 percent in after-hours trading. The forecast — and third-quarter results that beat Wall Street estimates — underscore how AI-driven shortages are forcing Micron's large-scale data center customers and other chip buyers to fund capacity, moves that are reshaping the memory market. Micron, which is the only U.S.-based manufacturer of high-end memory chips used alongside Nvidia's AI processors, has seen demand for these HBM chips far outstrip its production capacity. "We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints," Micron CEO Sanjay Mehrotra said in the company's prepared remarks. Micron's stock has surged more than threefold this year, despite a 13 percent plunge on Tuesday as part of a broader selloff. The chipmaker also outlined a business model shift aimed at making demand less