Micron Technology Inc. (NASDAQ:MU) said Wednesday that humanoid robots could become a major driver of memory and storage demand in the years ahead, a shift analyst Shay Boloor believes would be the turning point for physical AI demand.

MU’s Humanoid Memory Forecast

On Micron’s fiscal fourth-quarter earnings call, CEO Sanjay Mehrotra said autonomous vehicles are the first big use case for physical AI, requiring more than 200 gigabytes of memory and multiple terabytes of storage.

That shift, he said, is expected to extend to humanoid robots and other autonomous systems.

“Physical AI can become a significant driver of memory and storage demand by the end of this decade,” Mehrotra said, adding that several physical AI customers are already sampling Micron’s next-generation products.

The chipmaker is increasing investment in its technology roadmap to ensure it is prepared to capitalize on this opportunity.

The company expects first-half capital expenditure of around $25 billion after reporting $10.8 billion in the fiscal fourth quarter.

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Beyond the Data Center

Futurum Equities‘ chief market strategist Boloor, on X said the shift would effectively put “server level memory into millions of machines outside the data center.”

Tesla Inc.‘s (NASDAQ:TSLA) Optimus is built around the ambition of a general-purpose humanoid that can handle a wide range of physical tasks, while XPeng Inc. (NYSE:XPEV) has launched an automated production line for its own IRON humanoid robot.

Micron’s Record Quarter

Micron posted fourth-quarter revenue of $54.23 billion, beating analyst estimates of $50.75 billion, according to Benzinga Pro.

The company reported adjusted earnings of $33.42 per share, topping estimates of $31.45.

For the first quarter, Micron expects revenue of $60 billion to $63 billion, above estimates of $56.55 billion, and adjusted earnings of $37.15 to $39.15 per share, versus estimates of $35.07.

Price Action: Shares closed flat on Wednesday at $1065.11, then climbed 0.37% in extended trading to $1069 following the earnings announcement.

Benzinga edge rankings indicate Micron’s stock has a Momentum score in the 99th percentile and a Growth score in the 93rd percentile.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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