This article first appeared on GuruFocus.
Micron Technology (NASDAQ:MU) CEO Sanjay Mehrotra said AI is reshaping the memory market as demand for higher-capacity and faster components grows.
Speaking on CNBC’s Mad Money, Mehrotra said data-center customers are seeking about 50% more memory supply than Micron can currently commit to. He also pointed to demand from autonomous vehicles, robotics and AI-enabled consumer products.
The comments come as Micron expands its focus on future memory technologies. The company recently introduced a U.S. research center in Boise, Idaho, supported by a planned $10 billion investment over the next decade.
The facility will work on advanced memory, computing architectures, packaging and semiconductor manufacturing. Micron has also outlined more than $250 billion in planned U.S. manufacturing and research spending.
Micron shares climbed nearly 4% Thursday. The stock has benefited from rising expectations for AI-related memory demand, with revenue growth listed at nearly 167% year over year.
Persistent supply constraints and expanding AI applications could support Micron’s revenue outlook, although expectations for memory demand are already elevated.