Micron Technology is ramping up spending to address what its CEO Sanjay Mehrotra described as an unprecedented shortage of memory chips driven by surging AI demand. Mehrotra said the company can supply only 50% to two-thirds of what its key customers need, underscoring how critical memory has become as computing power accelerates.
The company reported record fiscal second-quarter results with revenue soaring to $23.86 billion from $8.05 billion a year earlier and non-GAAP earnings per share rising to $12.20, well above Wall Street expectations. Gross margins climbed to about 75%, nearly double last year’s level. For the current quarter, Micron guided revenue to $33.5 billion, plus or minus $750 million substantially ahead of analyst forecasts.
Despite the strong results, Micron shares slipped as investors reacted to the scale of its planned investment. The company said capital expenditures in fiscal 2026 will exceed $25 billion, up roughly $5 billion from prior projections and nearly double last year’s spending. Construction-related costs are also projected to rise by more than $10 billion year-over-year in fiscal 2027.
The buildout is global in scope. Micron aims to begin wafer output from its Idaho fab by mid-2027, while a new facility in New York and a fabrication site in Taiwan are expected to support production in 2028. Additional projects include a NAND fab in Singapore targeted for the second half of 2028 and an assembly and testing facility in India that has already started shipments.
To secure future supply, Micron has signed its first five-year strategic customer agreement with a major client, shifting away from traditional one-year contracts. The company said the deal establishes multi-year commitments to strengthen planning visibility and noted that similar agreements are underway with other buyers.
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