Micron closed its fiscal fourth quarter with revenue of $54.23 billion, up from $11.32 billion a year earlier — a nearly fivefold increase in twelve months. Net income rose from $3.2 billion to $37.7 billion over the same period. For the full fiscal year, revenue totaled $133.19 billion, compared with $37.38 billion the year before.

The growth is driven primarily by the rapid expansion of AI infrastructure. Data centers require large volumes of high-speed memory to feed data to GPUs, and high-bandwidth memory (HBM) in particular has become scarce. Micron benefits from both higher shipment volumes and higher memory prices.

The margins tell the story. Micron reported a gross margin of nearly 87 percent for the past quarter. The Core Data Center division reached a 90 percent gross margin on revenue of $18 billion, while the Cloud Memory division contributed another $16.3 billion.

Memory grows in importance for AI

CEO Sanjay Mehrotra expects the role of memory to keep expanding as AI systems grow larger and more complex. Micron is investing in new memory technology and additional production capacity accordingly.

HBM is central to that strategy. Placed next to GPUs, it delivers far more bandwidth than standard DRAM and has become a crucial component of AI accelerators. In this market, Micron competes chiefly with South Korea's SK hynix and Samsung.

According to SiliconANGLE, Micron is also working with Nvidia on a customized HBM implementation. The collaboration reflects a broader trend: memory manufacturers are tailoring products ever more specifically to future AI accelerators. Micron now produces HBM4 for Nvidia's Vera Rubin platform and has previously stated its intention to supply custom HBM for the Feynman generation starting in 2028.

Shortages persist

The AI buildout has consequences beyond the data center. Manufacturers are struggling to keep up with demand for DRAM and other memory types. Prices have risen sharply, and makers of PCs, smartphones, and other electronics are paying more for memory as a result.

Micron is expanding capacity, including investments in new fabs in Idaho and New York. The outlook remains strong regardless. For the first quarter of fiscal year 2027, Micron guides toward revenue of approximately $61.5 billion, adjusted earnings of $38.15 per share, and a gross margin above 86 percent.

There are few signs of a slowdown, then. The memory sector has historically been one of the most cyclical parts of the chip market, but the development of AI infrastructure is currently producing a combination of supply shortages, high prices, and long-term agreements with major customers.