Micron Technology (MU) investor relations material

Conference overview

• The forum gathered technology leaders, investors, and visionaries to discuss industry trends and future directions, with a focus on AI-driven transformation and memory technology advancements.

• Key industry forecasts highlighted global IT spending growth of 13.5% and data center spending up over 55%, both driven by AI adoption.

• The event emphasized the strategic importance of memory in enabling next-generation AI infrastructure and the evolving role of memory suppliers.

Market dynamics and demand trends

• AI is driving unprecedented demand for memory bandwidth and storage, with aggregate customer demand signals increasing beyond previous forecasts.

• Industry conditions are expected to remain tight through at least 2027, with 2027 projected to be even tighter than 2026 due to faster demand growth than supply.

• Demand is broad-based across market segments, but most acute in data centers, where supply often meets only half of customer needs.

• Customers are entering multi-year agreements but still feel they are leaving significant opportunities unmet due to supply constraints.

Strategic investments and supply chain

• Significant investments are being made globally, especially in the U.S., with planned increases from $200 billion to $250 billion over the coming years.

• Investments include $500 million in GlobalWafers and $3 billion in the supply chain to address raw wafer and manufacturing needs.

• U.S. investments are positioned as a key differentiator, with new leading-edge memory fabs coming online in Idaho and New York, and a premium expected for U.S.-made supply.