At a local time of 9:30 pm on September 30, memory chip giant Micron Technology released its latest financial report, with revenue and net profit increasing significantly:
Its adjusted revenue for the fourth quarter of 2026 reached $54.229 billion, up nearly 380% year-over-year; its GAAP net profit was $37.701 billion, a year-over-year increase of 1077.79%.
Thanks to the rapid development of AI, Micron Technology's four business units - cloud storage business, core data center business, mobile and client business, and automotive and embedded business - have all achieved strong growth, with revenue scales significantly increased. Micron Technology's chairman and CEO Sanjay Mehrotra said, "The company has achieved a record-breaking performance in 2026, and we expect its performance in 2027 to be even stronger."
Looking at the latest performance guidance provided by Micron Technology, the company expects its revenue for the first quarter of 2027 to be $61.5 billion, with a fluctuation of $1.5 billion up and down; its GAAP diluted earnings per share is expected to be $37.84, with a fluctuation of $1 up and down.
During the earnings call, Sanjay Mehrotra stated that, to date, a total of 26 strategic customer agreements (SCAs) have been signed, with a remaining performance obligation (RPO) of approximately $150 billion. Among these 26 SCAs and delayed agreements, the customers' committed funds have increased to $32 billion, with the vast majority being cash deposits. The customers hope to obtain supply guarantees until 2030, and the company has already signed SCAs that extend to 2031.
Sanjay Mehrotra stated that, "The supply and demand in the storage market will be even tighter in 2027 and 2028 than in 2026, and 'there is no end in sight' to rebalancing."
Sanjay Mehrotra also stated that, "In addition to data centers, the next major incremental market will be physical AI (Physical AI)." The first major deployment of physical AI is automatic driving cars, and we believe that, over time, it will extend to humanoid robots and other smart autonomous systems. The memory capacity of L4-level and above automatic driving cars is typically over 200 GB, with storage capacity reaching multiple TB, which is several orders of magnitude higher than today's L2+ and L3-level semi-automatic driving cars. Humanoid robots are also expected to have similar storage requirements. Micron believes that, as the number of devices and single-device storage capacity double, physical AI will become a very important driver of storage demand by the end of this century.
At a local time of 9:30 pm on September 30, Micron Technology's stock price opened high and then weakened in the intraday, finally closing flat, with its total market value falling to $120 billion. After the US market closed, Micron Technology's stock price plummeted, falling as much as 2% before rebounding in a V-shape and closing in the red.
Regarding the outlook for the storage sector, HuaFu Securities believes that, with cloud manufacturers increasing their purchases, the storage prices are expected to continue their strong performance in the fourth quarter, and the competition among storage companies is expected to extend further into the field of system efficiency, with enterprise SSDs and HBFs worth paying attention to, as well as their collaborative capabilities with reasoning frameworks.