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Micron Technology CFO: Revenue for the first fiscal quarter of fiscal year 2027 will reach 61.5 billion USD

Micron Technology (MU.O) Chief Financial Officer Mark Murphy stated during the earnings call that revenue for the first quarter of fiscal year 2027 will reach $61.5 billion, with earnings per share of $38.15, continuing to rise quarter-over-quarter, and clearly pointed out that this quarter will be the low point for gross margin for the entire fiscal year 2027, after which gross margins are expected to gradually recover in subsequent quarters.Micron has currently signed 26 long-term agreements, locking in approximately $150 billion in long-term orders. The supply and demand in the storage market for 2027 and 2028 will be tighter than in 2026, and "there is no end in sight for the restoration of supply and demand balance."Micron Technology (MU.O) expects capital expenditures for the first half of fiscal year 2027 to be around $25 billion, with higher spending in the second half, and most of the incremental spending will be for new wafer fabrication plants (construction expenditures) rather than purely for equipment procurement. Micron Technology CFO Mark Murphy explained that this is entirely because long-term contracts provide sufficient demand visibility, and new greenfield factories require a very long lead time.Additionally, Micron Technology Chief Financial Officer Mark Murphy also mentioned during the earnings call that in the fourth quarter of fiscal year 2026, Micron Technology generated an impressive $44 billion in operating cash flow and $33.2 billion in free cash flow.As time goes on, we expect to return 100% of excess cash to shareholders. We plan to begin increasing capital returns starting December 9, 2026 (the second anniversary of our signing of the final agreement for the CHIPS Act), primarily through stock buybacks.

first_img Samsung Electronics executive: It is expected that HBM will account for nearly 30% of DRAM wafer production capacity next year

According to a report by the Financial Associated Press citing local media on September 29, Samsung Electronics Executive Vice President Kim Taewoo stated that HBM is expected to account for nearly 30% of the total wafer capacity of DRAM manufacturers next year, up from the current ratio of about 20%. He mentioned that HBM competes with traditional DRAM for the same batch of wafer capacity, and increasing HBM output may squeeze the supply of traditional DRAM.TrendForce previously predicted that by the end of 2027, the HBM wafer input from the three major global HBM suppliers will account for about 30% of the total DRAM wafer input, but in terms of storage capacity, it will only contribute about 13% of the total DRAM supply. Additionally, according to media reports on September 20, Samsung began mass production and shipment of HBM4 in February this year and provided 12-layer HBM4E samples to customers including NVIDIA in May; the industry expects Samsung's monthly wafer input for HBM to increase from about 180,000 wafers this year to about 250,000 wafers next year.On the same day, TrendForce stated that the demand for AI servers continues, and HBM and general DRAM will still share limited advanced process capacity. The storage supply will remain tight in 2027, and the price expectations for HBM in 2027 have been raised, with an expected year-on-year increase of 121% in the mixed average selling price. Due to limited supply and rising system costs, 8-layer HBM is expected to become a priority evaluation option for several manufacturers in 2027, with its price per Gb expected to be about 10% to 20% higher than that of 12-layer products.
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