MUMicron Technology, Inc.

“We expect fiscal 2026 CapEx to be above $25,000,000,000. From our last earnings call estimate, the majority of the increase is driven by cleanroom facility-related CapEx, of which the largest factor is Tongluo, followed by construction spend increase in our U.S. fab projects. We project our fiscal 2027 CapEx to step up meaningfully to support HBM and DRAM-related investments. We expect construction-related CapEx to increase by over $10,000,000,000 year over year in fiscal 2027 as we build out our global manufacturing sites to address long-term demand opportunities.”

“in smartphones, OEMs have recently announced new flagship devices such as Samsung Galaxy S26 and Google Pixel 10 with agentic AI integrated into their mobile operating systems. The mix of flagship smartphones shipping with 12GB or more of DRAM increased to nearly 80% in calendar Q4, up from under 20% a year ago.”

“AI demand is driving DRAM and NAND data center bits TAM to exceed 50% of the industry TAM for the first time in calendar 2026.”

“Micron Technology, Inc. pioneered the development of LPDRAM for the data center, which consumes one-third the power of DDR DRAM server modules. Building on this leadership, we sampled the industry's first 256GB LP SoC-M2 product, which is built using our 1γ node and enables a massive 2TB of capacity per CPU, quadrupling the content from just a year ago.”

“In PCs, there has been exciting innovation recently with agentic AI applications, such as OpenClaw, where AI agents can perform tasks independently on the host PC and also initiate workloads in the cloud. PCs with on-device agentic AI capabilities have recommended memory configurations of at least 32GB, twice as much as the average PC.”

“In automotive, OEMs are deploying Level 2+ ADAS across their fleets at an accelerating pace. The average car today has less than L2 ADAS capability, containing approximately 16GB of DRAM, while vehicles with L4 autonomy require over 300GB.”

“the fast-growing new category of personal AI workstation, such as NVIDIA DGX Spark and AMD Ryzen AI Halo, come in 128GB configurations, ideal for using large language models on device.”

“In fiscal Q2, data center NAND revenues more than doubled sequentially, reaching a substantial new record, and we expect further growth in the quarter ahead.”

“At NVIDIA's GTC, we announced that Micron Technology, Inc. has begun volume shipment of its HBM4 36GB 12-Hi in 2026 and is designed for NVIDIA Vera Rubin.”

“We have also sampled our HBM4 16-Hi product, which provides 48GB of HBM capacity in each HBM, a 33% increase in the HBM capacity compared to HBM4 12-Hi.”

“We expect server units to grow in the low-teens percentage range in calendar 2026, driven by growth in both AI and traditional servers.”

“At GTC, the recent announcement of NVIDIA Grok 3 LPX implements up to 12TB of DDR5 in a rack-scale architecture.”

“Just look at from last year to this year: the DRAM requirement in the advanced AI accelerators has now doubled.”

“AI is a transformational secular driver. As Sanjay mentioned, AI requires more and higher-performance memory, and this memory helps with driving the token cost down. It helps lower the energy cost per token. It increases the number of tokens. It increases intelligence overall of AI, which drives harder problem sets and agent use, which drives more tokens and needs more memory.”

“Development of HBM4E, our next-generation HBM product, is well underway and we expect to ramp volume in calendar 2027. Our HBM4E will leverage Micron Technology, Inc.'s production-proven industry-leading 1γ DRAM technology node and is set to deliver another step-function improvement in performance, enabling a whole new generation of AI compute platforms across the industry.”

“these kinds of architectures make the AI infrastructure more efficient. Any architecture that makes AI infrastructure more efficient is good for AI; they help the pie grow faster. Keep in mind that this LPU architecture works in conjunction with Vera Rubin, which utilizes a tremendous amount of HBM as well as DRAM.”

“Traditional server demand is robust, driven by a combination of demand from workloads initiated by agentic AI as well as broad-based server refresh. AI server demand continues to be strong. Both AI and traditional server demand are constrained by lack of adequate DRAM and NAND supply.”

“what you are seeing reflected in our gross margin is the benefits of AI driving a multiyear investment cycle, most of which is ahead of us. AI requires more memory and more high-performance memory, and that is reflected in the margins.”

“these SCAs really bring us closer to the customer in terms of partnership. That partnership extends into bringing us closer in terms of R&D collaboration and roadmap planning, both ours as well as for customers.”

“The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints, and Micron Technology, Inc.'s strong execution across the board.”

“We are seeing an acceleration in NAND-based demand in the data center due to AI use cases such as vector database and KV cache offload, and due to growing share of SSDs in capacity storage tiers.”

“Our data center SSD market share increased for the fourth consecutive calendar year in 2025 to a new record.”

“Rapid improvements in AI are supercharging the capabilities of robots. We believe we are on the cusp of a 20-year growth vector in robotics and expect robotics to become one of the largest product categories in the technology world. Humanoid robots will be AI-enabled and will be powered by a compute platform that rivals that of a high-end L4-capable automobile, thus requiring significant memory and storage capacity.”

“Memory makes AI smarter and more capable, enabling longer context windows, deeper reasoning chains, and multi-agent orchestration. As AI evolves, we expect compute architectures to become more memory intensive.”

“overall, whether in data center or in the consumer parts of the markets, such as smartphones or PCs, the AI trend is continuing to drive greater and greater requirements for memory content.”

“today, the enterprises' AI deployment as a percentage is still very, very low, and across all verticals, across all industries, across the economies, there is a lot of opportunity ahead.”

“AI has not just increased demand for memory; it has fundamentally recast memory as a defining strategic asset in the AI era.”