Micron sees FY26 capital expenditures higher than FY25 levels

Says expects to be one of the biggest beneficiaries of AI in the semiconductor industry. Says performance was supported by the ramp of high value data center products and broad-based DRAM pricing strength across end markets. Says AI driven demand is accelerating and industry DRAM supply is tight. Says customer inventory levels are healthy overall across end markets. Says expects calendar 2025 industry DRAM bit demand growth to be in the high-teens percentage range, somewhat higher than its previous outlook. Says expects calendar 2025 industry NAND bit demand growth to also be higher than its previous outlook, now in the low-to mid-teens percentage range. Says expects Micron’s (MU) calendar 2025 bit supply growth to be below industry bit demand growth for non-HBM DRAM and for NAND. Says robust data center demand, including the uptick in server unit growth, has contributed to a tight industry DRAM environment and strengthened NAND market conditions. Says broadening of demand across end markets has also constrained DRAM supply. Says on the supply side, expects low supplier inventories, constrained node migration as industry supports extended D4 and LP4 end-of-life, longer lead times and higher costs globally for new wafer capacity, all to limit the pace of supply growth for DRAM in 2026. Says in calendar 2026, anticipates further DRAM supply tightness in the industry and continued strengthening in NAND market conditions. Says over the medium term, anticipate industry bit demand growth of mid-teens CAGR for both DRAM and NAND. Comments taken from Q4 earnings conference call.