Chip

DRAM

<h3 id="key-takeaways">Key Takeaways</h3>
<ul>
 <li>Micron’s Q3 results showed revenue of $41.46 billion, representing a 346% year-over-year surge, with earnings per share of $25.11 crushing expectations by more than $4.</li>
 <li>CEO Sanjay Mehrotra explained to Jim Cramer that the memory chip supply crisis is structural rather than cyclical, with new manufacturing facilities delayed until 2027–2028.</li>
 <li>Both HBM3E and HBM4 memory products are completely sold out through 2027, supported by $22 billion in advance customer deposits from hyperscalers.</li>
 <li>The company has delivered over $1 billion in HBM4 shipments and asserts technological superiority over competitors SK Hynix and Samsung in DRAM and NAND sectors.</li>
 <li>MU shares are currently trading around $970, retreating from their 52-week peak of $1,255, while maintaining approximately 244% gains year to date.</li>
</ul>
Micron Technology (MU) shares are hovering near $970, having pulled back from the 52-week high of $1,255 reached on June 25, yet the stock maintains impressive gains of approximately 244% year to date. Despite the recent decline, the fundamental narrative remains robust — a point CEO Sanjay Mehrotra emphasized during his appearance on Jim Cramer’s Mad Money on June 30.
<a href="https://knockoutstocks.com/stock/MU" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/MU/embed" alt="MU Stock Card"> Micron Technology, Inc., MU </a>
Cramer posed the question dominating investor sentiment: what’s the timeline for resolving the memory shortage? Mehrotra’s response was unambiguous.
<blockquote>
 “The industry requires greenfield capacity. This means brand new construction of clean rooms. Those clean rooms require substantial time from initial groundbreaking to producing the first wafers.”
</blockquote>
The company’s initial Idaho fabrication facility will begin wafer production by mid-2027, with full-scale manufacturing ramping predominantly throughout 2028. A secondary Idaho fab becomes operational by late 2028. The New York manufacturing site follows subsequently. Translation: the supply constraints persist for years.
Cramer previously highlighted <a href="https://coincentral.com/michael-burry-just-shorted-micron-mu-stock-heres-why-he-thinks-its-a-bubble/" rel="noopener noreferrer nofollow">Micron’s</a> Q3 performance as among the most impressive earnings surprises he’s witnessed. The figures validate that assessment. Revenue totaled $41.46 billion, representing a 346% year-over-year increase from $9.30 billion. Non-GAAP earnings per share reached $25.11, surpassing the $20.78 consensus estimate. Free cash flow climbed to a company record of $18.30 billion.
The Q4 outlook is equally remarkable: $50 billion in projected revenue, approximately 86% gross margins, and anticipated EPS of $31.00.
<h3 id="hbm4-technology-breakthrough">HBM4 Technology Breakthrough</h3>
Both HBM3E and HBM4 memory products are entirely sold out through the end of calendar year 2027, with order backlogs already stretching into 2028. Major hyperscalers have deposited $22 billion in advance payments to guarantee future supply.
During the earnings conference call, Mehrotra revealed that Micron had already delivered over $1 billion worth of HBM4 products. This milestone transcends simple revenue metrics — it represents a technological achievement. HBM4 ranks as the most sophisticated memory product globally to manufacture, and Micron stands as the sole U.S.-based producer delivering it at commercial scale.
When Cramer directly questioned whether Micron had overtaken <a href="https://coincentral.com/sk-hynix-stock-is-it-a-good-long-term-buy-after-its-record-run/" rel="noopener noreferrer nofollow">SK Hynix</a> and Samsung, Mehrotra responded definitively: “Regarding DRAM and NAND technology, we maintain clear technology leadership.” The company currently holds approximately 65,000 patents.
Cramer also highlighted the valuation opportunity. Despite the substantial rally, MU shares trade at less than eight times earnings.
<h3 id="domestic-manufacturing-expansion">Domestic Manufacturing Expansion</h3>
Micron has pledged $200 billion toward U.S.-based manufacturing and research and development initiatives, targeting the creation of over 90,000 jobs. Additionally, the company is investing $300 million in developing a domestic semiconductor workforce through apprenticeship programs, community college partnerships, and university collaborations.
Cramer mentioned Morris Chang’s assertion that U.S. chip production costs exceed Taiwan’s by 50%. Mehrotra countered by referencing Micron’s current Manassas, Virginia facility, which already manufactures advanced memory solutions for automotive, defense, medical, and aerospace applications.
Addressing the consumer segment, Mehrotra acknowledged that surging AI data center demand is constraining availability for smartphone and PC memory, driving up consumer device prices. He noted that Micron maintains approximately 40% of its business in consumer markets to preserve portfolio diversification.
MU trades at $970 as of July 2, with fourth-quarter guidance projecting $50 billion in revenue and EPS of $31.00 approaching.
The post <a href="https://blockonomi.com/micron-mu-stock-ceo-reveals-memory-chip-shortage-wont-end-until-2028/" rel="noopener noreferrer nofollow">Micron (MU) Stock: CEO Reveals Memory Chip Shortage Won’t End Until 2028</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Micron (MU) Stock: CEO Reveals Memory Chip Shortage Won’t End Until 2028

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