Micron Forecasts $61.5B Q1 Revenue as AI Demand Boosts HBM Sales

Micron Technology expects first-quarter revenue to reach $61.5 billion, topping Wall Street expectations as surging artificial intelligence infrastructure spending drives record demand for specialized memory chips. The chipmaker also reported fourth-quarter revenue that more than quadrupled, reinforcing sustained enterprise demand for hardware capable of handling complex machine learning workloads.

“Micron’s complete blowout earnings and forecast should put the nail in the coffin of the ongoing doubters about the resiliency of the AI buildout,” said Bob O’Donnell, chief analyst at TECHnalysis Research, in a Reuters report.

Fourth-Quarter Results and Guidance

According to the Reuters report, Micron's projected first-quarter revenue comes with a margin of plus or minus $1.5 billion, comfortably exceeding the average analyst estimate of $57.0 billion. Adjusted profit for the upcoming quarter is forecast at $38.15 per share, give or take $1, which beats consensus estimates of $35.40 per share.

For the fourth quarter, Micron reported revenue of $54.2 billion, more than quadrupling its performance from the prior-year period and beating the $51.1 billion average estimate. Adjusted profit for the quarter landed at $33.42 per share, surpassing the $31.61 per share expected by analysts.

Long-Term Supply Commitments and Backlog

To manage this demand environment, customers have ramped up financial commitments. Customers increased their advance commitments under long-term supply agreements to $32 billion, up from $22 billion reported in June, with the majority of those commitments provided as cash deposits.

Simultaneously, remaining performance obligations under long-term agreements expanded to about $150 billion, compared with roughly $100 billion in the previous quarter. Chief Executive Sanjay Mehrotra stated that the company has already secured agreements for the vast majority of its 2027 high-bandwidth memory output and will raise fiscal 2027 capital spending above previous projections to expand manufacturing capacity.

What Memory Shortages Mean for the AI Hardware Supply Chain

High-bandwidth memory, commonly known as HBM, stacks multiple DRAM dies vertically to accelerate data transfer rates while reducing power consumption, making it a critical component for high-performance AI accelerators built by firms like Nvidia and AMD. Because manufacturing HBM requires specialized packaging lines and significantly more silicon wafer area than standard memory, industry-wide supply shortages are projected to persist through 2028.

In the public markets, Micron Technology Inc (MU) stock traded at $1,063.96, down 1.02% as of October 5, 2026, according to Finnhub market data. The slight pullback arrives as investors weigh the company's aggressive capital expenditure plans against the broader hardware supply chain bottlenecks shaping the semiconductor sector.