Micron Technology, Inc.

The transcript did not include Micron’s reported quarterly revenue, EPS, gross margin, or year-over-year financial results. For guidance, Mark Murphy said first-quarter guidance factors in single-digit sequential bit growth and double-digit cost growth for both DRAM and NAND, and that year-over-year R&D increase will be more than $1 billion in fiscal 2027. Management also said the majority of fiscal 2027 construction capex increase is for clean rooms that will come online in late 2028 and beyond.

Manish Bhatia’s tone was confident and constructive, emphasizing stronger demand drivers, especially AI-related server and CPU demand, and saying the company has “no line of sight” to when supply and demand will balance. He framed the 26 SCAs and expanding customer commitments as evidence that Micron can plan more confidently through 2028 and beyond. He also highlighted Micron’s technology leadership, HBM progress, and the importance of security and AI infrastructure as long-term demand supports.

Mark Murphy focused on margin durability, saying margin expansion in fiscal 2027 should continue, though at a more moderate pace as price increases eventually slow and start-up costs rise. He pointed to favorable mix and continued tight market conditions as support for performance through 2028. On the spending side, he said the majority of the fiscal 2027 construction capex increase is for clean-room expansion, and he flagged a more than $1 billion year-over-year increase in R&D for fiscal 2027 excluding incentive comp effects.

Analysts pressed management on why 2028 could remain tighter than 2027, and Micron said stronger demand, especially from agentic AI and server growth, plus supply constraints from clean rooms and HBM trade ratios, were the key reasons. Questions also focused on HBM TAM, pricing, and share; Micron did not update TAM, said HBM pricing for calendar 2027 had increased significantly and would reset to narrow the profitability gap with DRAM, and said HBM share is expected to stay around broader DRAM share rather than a fixed low-20s target. Analysts asked about SCA pricing frameworks and capex; management said newer deals reflect current market tightness, and that more construction capex is being pulled forward for clean rooms that will not contribute bits until later years.