Micron quadruples revenue to $41.5B with HBM contracted through 2027
Micron's Q3 revenue reached $41.5B — 4× last year's $9.3B and $5.6B above estimates — with gross margin expanding from 39% to 85% in twelve months and Q4 guided to $50B against a $43.6B consensus. Sixteen binding supply agreements worth $22B have locked HBM capacity through 2027, and CEO Sanjay Mehrotra put supply normalization at 2028 — marking memory, not compute, as the structural bottleneck on AI infrastructure buildout.
Source: cnbc.com ↗
Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve, even as we expect industry supply to improve gradually in 2028.
Sanjay Mehrotra, Micron CEO
Why this matters
- → Memory supply becomes AI infrastructure's binding constraint through 2027.
- → Micron locks $22B in binding customer commitments, securing demand visibility.
- → 85% gross margins signal pricing power as shortage persists.
Memory bottleneck