Micron Technology Inc.

Demand outlook tightening further into 2027–2028 (good; but uncertain balance) - Management said demand drivers are stronger than previously expected, led by server DRAM growth into FY27 and agentic AI accelerating CPU-driven memory demand (high attach rate across LP/DDR/SSD). - They highlighted >75% of FY27 shipments already committed, and SCA customer conversations extending out to 2028, supporting confidence in demand durability. - On the supply/demand balance, they explicitly said they do not have line of sight to when balance will occur, implying continued “tightness” risk persists rather than a clear timing to normalization.

Supply growth constrained (surprising vs CapEx), driven by HBM mix + clean room bottlenecks (good for pricing; key risk for investors) - They reiterated structural supply constraints: - HBM growing faster than conventional DRAM through 2028 → HBM share increases (and higher HBM trade ratios as it moves toward HBM4/HBM4E) dampen effective bit growth. - Clean room space constraints: meaningful capacity growth lags because clean rooms take time to build/qualify/equip, often requiring several quarters after opening. - Surprise: they expect DRAM supply growth to decelerate next year (FY27) despite visible industry investment—attributed to HBM mix/trade ratio effects and clean room timing/constraints. - Bottom line: tight supply is viewed as a structural feature, not a short-lived cycle.

Margin / earnings guidance framing for FY27 and tightness into FY28 (moderately good; watch offsets) - CFO said FY27 still expects margin expansion after Q1, driven by continued price increases (but at a more moderate pace than earlier phases). - Also expects better mix / product mix working favorably as part of sustaining profitability. - Key offsets include start-up costs; however, they stated these are being managed and tight market conditions should remain supportive through FY28. - Investors should note: explicit “tight through 2028” commentary is stronger than typical, but they did not give a precise margin rate for 2028—rather a “supportive” environment.