Micron CEO Sanjay Mehrotra: Memory chip supply is tight, we can't deliver enough to customers

Core Viewpoint - Micron's stock has increased over 320% year-over-year, reflecting strong financial performance despite a minor pullback in stock price [1] Financial Performance - Micron reported a $10 billion increase in revenue from fiscal Q1 to Q2, with fiscal Q3 guidance indicating another nearly $10 billion increase, leading to a midpoint revenue guidance of approximately $33.5 billion [5] - The company is among the top 10 tech companies in the S&P 500, highlighting its significant role in the AI sector [6] Market Dynamics - The demand for memory, particularly high-performance memory (HPM), is increasing due to advancements in AI, which requires more and faster memory to function effectively [3][4] - There is a tight supply of memory across all end market segments, with Micron only able to meet 50% to 66% of key customers' requirements in the midterm [8] Supply Chain Challenges - The ramp-up of memory supply is expected to take a considerable amount of time, with meaningful increases in capacity not anticipated until around 2028 [8] - The construction of new capacity is a long lead time item, complicating the ability to meet rising demand [8] Strategic Positioning - Micron is managing its product mix to optimize profitability, with non-HPM DRAM currently showing higher profitability than HPM, and NAND also performing strongly [9] - The data center segment is identified as the biggest growth driver for the company [9][10]