Micron Guides Higher, Bets On AI-Driven Memory Demand

Micron Technology MU wrapped up its fiscal Q4 with confidence and a clear message: AI is reshaping its business, and it's doubling down. While CEO Sanjay Mehrotra stayed off the mic this time, EVP Sumit Sadana said hyperscalers are running short on HDD capacity, which should fuel bigger demand for NAND SSDs in AI servers starting in 2026.

Sadana pointed to Micron's growing share in data center SSDs and rising traction in HBM, saying the company expects to match its DRAM share in HBM by late 2025 and grow that share in 2026. He also explained the decision to exit managed NAND as a way to free up resources for higher-return areas like AI-driven data centers.

CFO Mark Murphy backed that up with a hefty investment plan: CapEx is set to climb to $18 billion in both 2025 and 2026, mostly for DRAM equipment and fab construction. Gross margin is at its strongest since 2018, and NAND free cash flow is positive for the second straight year.

Micron is steering hard into the AI cycle, shifting strategy and spending to lock in HBM leadership while navigating supply constraints and potential tariff risks.