Micron Technology Inc. (NASDAQ:MU) said on Wednesday that more than 75% of its 2027 chip output is already committed, with customer discussions already shifting toward 2028, but it still left shares up just 0.37%.
2027 Is Already Spoken for
“More than 75% of our output is already committed for 2027, and the majority of discussions with our customers today are already around 2028,” CEO Sanjay Mehrotra said on the company’s fiscal fourth-quarter earnings call.
“So overall, the industry demand-supply environment and the outlook is in a very healthy place here,” he added.
Mehrotra said a large part of its 2027 high-bandwidth memory chip volume was already sold out, “and the prices are much higher than 2026 prices, which he said was helping narrow the margin gap between HBM and the rest of its memory business.
Supply Deals Now Stretch to 2031
Micron has signed 26 strategic customer agreements that are now estimated to account for more than 35% of revenue through 2030.
Customers have pushed for supply assurance even further out, with some agreements now extending into 2031.
Demand is expected to continue to outpace supply through 2027 and 2028, with the industry tightening in both years compared with 2026, Mehrotra added.
Why the Stock Didn’t Pop
Futurum Equities analyst Shay Boloor said on X that Micron shares weren’t more green because the quarter was still largely price-driven, with DRAM and NAND revenue growth outpacing actual shipment growth by a wide margin.
However, he said the chipmaker gave investors far more visibility this quarter into why that strength could hold, pointing to the 75%-plus of 2027 output already committed and new cleanroom capacity not arriving until late 2028.
Beats Across the Board
Micron posted fourth-quarter revenue of $54.23 billion, topping analyst estimates of $51.13 billion, according to Benzinga Pro. Adjusted earnings came in at $33.42 per share, ahead of estimates of $31.45.
Looking ahead, Micron guided for first-quarter revenue of $60 billion to $63 billion, above estimates of $57.24 billion, and adjusted earnings of $37.15 to $39.15 per share, versus estimates of $35.36.
Price Action: Shares closed flat Wednesday at $1,065.11, then rose 0.37% to $1,069 in extended trading.
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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