Micron CEO Sanjay Mehrotra stated that data center customers currently want roughly 50% more memory supply than the company is able to commit to. This demand gap may persist until 2028, marking a structural shift from the semiconductor industry's historical cycles of oversupply and price collapses. To secure future volume, Micron signed 16 take-or-pay contracts that include $22 billion in upfront cash deposits and roughly $100 billion in minimum contracted revenue.
The company is investing $250 billion in US manufacturing, including two large fabs in Boise, Idaho, with first wafers starting in mid-2027 and production ramping in 2028. This expansion follows a surge in AI-driven demand that pushed fiscal third quarter 2026 revenue to $41.5 billion, quadrupling the previous year's result and beating Wall Street's $35.6 billion estimate.