--- title: "Micron Says Customers Are Scrambling for Memory Even at ‘Very High’ Prices" type: "News" locale: "en" url: "https://longbridge.com/en/news/295516346.md" description: "Micron Technology stock rose as executives highlighted AI-driven memory shortages tightening supply through 2027. Customers are securing long-term deals despite high prices, with demand outpacing supply in data centers. The company reported strong financials, including an 81% operating margin, and announced significant manufacturing investments to expand capacity. Strategic agreements now cover half of revenue, supporting robust margins and growth amid persistent supply constraints." datetime: "2026-08-11T09:40:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295516346.md) - [en](https://longbridge.com/en/news/295516346.md) - [zh-HK](https://longbridge.com/zh-HK/news/295516346.md) generator: "portal-rs" --- # Micron Says Customers Are Scrambling for Memory Even at ‘Very High’ Prices **Micron Technology, Inc.** (NASDAQ:MU) stock gained over a percent during Tuesday’s premarket session as risk appetite stays steady into the open. Nasdaq futures are up less than half a percent while S&P 500 futures have gained 0.02%. The company executives said at the **KeyBanc Capital Markets Technology Leadership Forum 2026** on Aug. 10 that AI is reshaping memory demand, tightening supply and making long-term customer agreements a bigger part of the company’s growth strategy. ## AI Demand Drives Memory Growth **Sumit Sadana**, Micron’s executive vice president and chief business officer, said AI has created a different demand cycle for memory, with customer demand rising faster than industry supply. Micron now expects calendar 2027 to be even tighter than 2026 as AI drives growing demand for DRAM capacity and memory bandwidth. Sadana said customers remain eager to secure more memory even as prices remain at “very high” levels, with tight supply limiting their ability to meet unit, volume and revenue opportunities. The shortage is most acute in data centers, where Micron often can meet no more than half of customer demand. “Our customers are telling us that despite the fact that the prices are at very high levels, that they are eager to get more supply because they are not able to meet their own business case requirements,” he said. Sadana said memory has become a strategic asset as AI systems require greater capacity and bandwidth to improve performance. Micron still has no clear line of sight to when supply will catch up with demand, he said. ## Margins And Revenue Remain Strong Sadana said Micron’s business remains on a “terrific trajectory,” with exceptionally strong financial performance. He highlighted an 81% operating margin in the latest quarter and described gross margins as extraordinarily robust. He said Micron is moderating price increases to balance long-term customer demand with return on investment, while still expecting revenue and profit growth from better product mix, higher shipments and future pricing opportunities. ## Manufacturing Investments Support Supply Expansion Sadana said Micron is investing heavily in manufacturing and supply-chain capacity to support long-term demand. The company raised its U.S. investment commitment from $200 billion to $250 billion and committed $500 million to GlobalWafers as part of broader supply-chain investments totaling $3 billion. He said Micron is the only company investing in front-end memory fab manufacturing in the U.S., with projects in Idaho, New York and Virginia, along with global investments in Japan, Taiwan, Singapore and India. ## Customer Deals Deepen Partnerships Sadana said Micron’s Strategic Customer Agreements are transforming the company’s business model. The agreements are expected to cover about half of revenue, include binding take-or-pay terms and run mostly through calendar 2030. He said Micron had announced 16 agreements at earnings and signed more afterward. These deals include cash and cash-like commitments, pricing structures that support strong gross margins and deeper collaboration on product roadmaps and R&D. ## Outlook Points To Tight Supply Sadana expects AI adoption, agentic AI, physical AI and robotics to drive more memory demand over the next several years. He said robots could eventually require hundreds of gigabytes of DRAM and terabytes of SSD storage per unit, creating another major growth opportunity later this decade and into the early 2030s. **Analyst Consensus & Recent Actions:** The stock carries a Buy rating with an average price forecast of $1537.50. Recent analyst moves include: - **Citigroup**: Buy (Lowers Forecast to $1150.00) (Aug. 7) - **Keybanc**: Overweight (Raises Forecast to $1750.00) (July 14) - **Cantor Fitzgerald**: Overweight (Raises Forecast to $2000.00) (June 29) ## Top ETF Exposure - **Invesco PHLX Semiconductor ETF** (NASDAQ:SOXQ): 8.91% Weight - **State Street SPDR NYSE Technology ETF** (NYSE:XNTK): 8.75% Weight - **Invesco AI and Next Gen Software ETF** (NYSE:IGPT): 8.71% Weight **Significance:** Because MU carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. ## Price Action **MU Stock Price Activity:** Micron Technology shares were up 1.09% at $869.07 during premarket trading on Tuesday, according to Benzinga Pro data. *Photo via Shutterstock* **Read Also: Micron’s Memory Boom Is Heading For A Peak, Analyst Warns** ### Related Stocks - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [MUU.US](https://longbridge.com/en/quote/MUU.US.md) - [MUD.US](https://longbridge.com/en/quote/MUD.US.md) - [MULL.US](https://longbridge.com/en/quote/MULL.US.md) - [MUYY.US](https://longbridge.com/en/quote/MUYY.US.md) - [MUZ.US](https://longbridge.com/en/quote/MUZ.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XNTK.US](https://longbridge.com/en/quote/XNTK.US.md) - [IGPT.US](https://longbridge.com/en/quote/IGPT.US.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) ## Related News & Research - [Why Micron stock is falling hard today](https://longbridge.com/en/news/302765784.md) - [Micron Stock Moves Higher: What's Going On?](https://longbridge.com/en/news/302449704.md) - [Micron Technology, Inc. $MU Stock Purchased by Teamwork Financial Advisors LLC](https://longbridge.com/en/news/302388716.md) - [Micron Technology, Inc. $MU Stock Sold by Lmcg Investments LLC](https://longbridge.com/en/news/302854085.md) - [‘The Right Moment,’ Says Top Investor About Micron Stock](https://longbridge.com/en/news/302750796.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**