Micron forecasts strong profit as AI chip demand drives $22 billion in orders

Micron said customers had already committed $22 billion to secure future memory-chip supply and forecast quarterly profit and revenue well above Wall Street expectations. The shares jumped 12% in after-hours trading, recovering from a 13% drop the previous day as part of a broader tech selloff.

Micron is the only U.S.-based manufacturer of high-end memory chips used alongside Nvidia’s AI processors, and its high-bandwidth memory business has been stretched by demand from data center customers and other buyers. Micron said the $22 billion in commitments came through 16 strategic customer agreements spanning data center, consumer and automotive markets, not just a single AI client. Its remaining performance obligations for the agreements it has signed so far are about $100 billion.

Chief executive Sanjay Mehrotra said tight conditions are likely to persist beyond calendar 2027 as AI demand expands across segments while supply stays structurally constrained. Analysts said the scale of the AI buildout has been underestimated and that memory should keep commanding premium pricing as long as supply remains tight. The terms of the agreements include take-or-pay commitments, cash deposits and pricing floors.

Micron’s stock was up about 700% over the past year and its market value had climbed past $1 trillion. Micron’s fiscal second-quarter revenue reached $23.86 billion, and in fiscal third quarter it climbed to $41.46 billion, with GAAP net income of $28.24 billion and adjusted earnings of $25.11 a share.

Micron is also trying to turn that demand into more domestic supply. The company broke ground on Jan. 16, 2026, on a $100 billion leading-edge memory manufacturing complex in Clay, New York, in Onondaga County, with plans for up to four fabs and 50,000 jobs in New York.