Micron Says AI Customers Are Paying Billions Today For Memory They Won't Get Until Years Later, Sanjay Me

Micron Technology said customers are locking in future memory supply by committing billions of dollars years ahead amid a prolonged AI-driven shortage. The company reported about $22 billion in customer commitments, including roughly $18 billion in cash deposits, under contracts lasting up to five years that currently cover about 20% of its DRAM volume and about one-third of its NAND volume. Micron expects NAND to represent half or more of revenue eventually. Management said it still lacks visibility on when supply will catch up, and expects tight conditions to persist beyond calendar 2027 due to AI demand across segments plus structural supply constraints. Micron highlighted South Korea as a key production region for advanced memory, dominated by SK Hynix and Samsung Electronics for HBM used in AI accelerators. The company also forecast fourth-quarter revenue of $50 billion (±$1 billion) and adjusted earnings of $31 per share (±$1) versus analyst estimates of $42.95 billion and $25.50. Shares closed down 0.3% at $1,048.51 but rose 15.78% to $1,213.96 after hours.