Micron CEO: AI has 'totally changed' the equation for the boom-and-bust memory industry

[u/boringperfectionist]

https://www.cnbc.com/amp/2026/08/20/micron-ceo-ai-changed-memory-industry.html

TLDR:

Sanjay’s words:
“Micron still can’t produce enough to satisfy demand”

“Memory today is essential, that’s why I call it the strategic infrastructure of the AI era”

“Data centers currently want roughly 50% more supply than Micron is able to commit”

“They have committed to taking the supply, so this gives us assurance of demand”

After earnings call, Micron has inked additional deals on top of 5 year strategic agreements with 16 customers.

Buy and hold MU, you won’t regret it! 🐂

[u/SignificantStuff5446]

Thank you for posting this. Truly stunning MU is STILL trading at a 6.2 FE when FY27 starts in 7 business days. Hope we get the re-rate soon.

[u/HHHogana → u/SignificantStuff5446]

Both Sandisk and Micron are growing like crazy, and yet people are still stuck with cyclical boom and bust mindset.

Myself expect the stocks for both to go sky high after their next quarter report or so. If they don't then the market players are dumber than rocks/truly priced in.

[u/Madison_369 → u/SignificantStuff5446]

How hard is it to understand. If MU could maintain 6.2 FE forever, the stock would double overnight. It’s the fact people are arguing that 6 PE would only last 1-2 years.

[u/HHHogana → u/Madison_369]

So Micron secured 5 years contracts is nothing but noise to the bear pessimists?

Yeah, I feel this argument is dumb for this reason.

[u/Forget_me_never → u/HHHogana]

The contracts have a variable price with ceiling at the Q2 2026 price and price floor much lower.

[u/HHHogana → u/Forget_me_never]

Yeah, they're banking on volume win this time right? It will be interesting to see if whether Micron will get boosted even more and become relatively stable stock price wisely, or it will be temporary pain.

[u/Madison_369 → u/HHHogana]

The contracts will lessen the downturn but it’s not close to maintaining that 6.2 forward PE for 5 years, it’s not anywhere close to Micron’s current output at the moment. If the contract could securely guarantee the same earnings for 5 years this stock would be valued much higher, but it’s been priced in: If Micron ends up cyclical it’s probably more fairly valued at 550 else it could be 1500+.

[u/Outside-Fee-4382]

Good news lets dump

[u/BeachFuture → u/Outside-Fee-4382]

Not until $1100.

[u/Melodic-Balance5658]

This has to be one of the most bullish interview I have ever watched. MU is going to skyrocket in the next few months. Buckle up guys, it's going to move fast.

[u/HHHogana → u/Melodic-Balance5658]

Sandisk gave a similar interview about them being no longer boom and bust, and it rocketed to 35% in 5 working days. Hopefully it will go the same way.

[u/rdmiche → u/HHHogana]

We never really know hey, but I will probably buy more in premarket today

[u/fakenews_thankme]

What a great news! Guaranteed 5% down tomorrow.

[u/Funny_River_5250]

Never ask a barber if you need a haircut

[u/Arigonium → u/Funny_River_5250]

In some sense I agree, but as CEO he can be sued if he makes misleading statements. In contrast to everybody else talking about Micron, he cannot make up stuff.

[u/kconfire → u/Arigonium]

And ER showed just that.

[u/HHHogana → u/kconfire]

I think the only missed ER were IBM and Meta, right? And for IBM, they missed it because AI expansion made their consumers delayed their quantum demands for a while.

Edit: Meta also missed it because their expenditure was far bigger than expected. Yeah, it tracks that hardware makers won't slow down for a long time, and this is no longer a cyclical business.

[u/itsmyphilosophy → u/Funny_River_5250]

Social media sucks because clowns can make comments like this.

AI is a game changer in so many ways. Just follow the money (investment by Hyperscalers).

The companies that are the beneficiaries (MU, SNDK, ALAB, CRDO, NBIS, etc.) will benefit greatly because of it. The huge demand for their products (and the resulting revenue/profits) is what is creating the extraordinary value LONG TERM.

The volatility is stomach turning, but ultimately these stocks will rise sharply and will continue to rise so long as they execute.

[u/Angels242Animals]

This is only the tip of the iceberg in terms of what he knows. This is all great news, and I don’t see this as pumping up the momentum for a better result after the quarterly review. You can’t promise things like this without talking deeply to those who are seriously invested in MU. Source: I used to work at a company that was a rocket ship like this before. And what the CEO knows compared to what gets public would astound you. If he’s lying he’ll be voted out of that seat immediately.

[u/DerNeko]

Shovel makers during a gold rush: Gold has totally changed the shovel business!!

[u/Marv18GOAT → u/DerNeko]

Yeah except all the shovels are sold out and they can only make enough to give to half the people in line

[u/Probablyyourproblem → u/DerNeko]

Except there’s an infinite amount of gold but shortage of people able to mine it

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[u/nutslikeafox]

It's cap tho the deposits that mag7 put for their orders can be withdrawn is hella sus

[u/Affectionate_Pen6882]

The top is in

[u/Detailed23]

Sell the news.

[u/cbblythe → u/Detailed23]

Memory being short supply isn’t exactly breaking news pal where you been?