Micron CEO Sanjay Mehrotra said memory has become the strategic infrastructure of the artificial intelligence era, a shift he argues has permanently reset the economics of a cyclical industry.

He made the comments on Thursday at a semiconductor fabrication site near the company’s headquarters in Boise, Idaho. The firm is building two fabs as part of a planned $250 billion investment in US manufacturing and research.

Why Mehrotra Calls Memory Infrastructure

Memory has long moved in cycles. Strong demand pulls in new capacity. Excess supply then pushes prices back down.

Mehrotra argues that AI has created a more durable source of demand. This is also changing how customers value memory, according to him. Customers can no longer treat memory as a commodity bought mainly on price.

Instead, memory increasingly needs to work alongside the processors and systems using it. That shift makes memory more important to overall system performance.

“That’s why I call it the strategic infrastructure of the AI era,” he said. “Today, there is no AI without memory. AI systems need more memory,” he said.

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What the Numbers Show

Micron’s results give the claim numbers. Fiscal third-quarter revenue reached $41.46 billion, against $9.30 billion a year earlier.

Gross margin reached 84.6% of revenue, up from 37.7% a year earlier. The company guided to a fiscal fourth-quarter margin of roughly 86%.

Supply remains the constraint. The CEO revealed that Micron still cannot produce enough memory to meet demand, with data-center customers seeking roughly 50% more supply than the company can commit.

Mehrotra expects demand to widen further. He named autonomous vehicles, robots, and AI-enabled consumer devices as future buyers.

However, the framing has critics. A June lawsuit accuses Micron, Samsung, and SK Hynix of inflating dynamic random-access memory (DRAM) prices.

Meanwhile, Chinese producers such as CXMT are also scaling output, which could reopen the price competition Mehrotra says AI impacted.

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Source: BeInCrypto