Chip supply to stay constrained 'beyond 2027,' Micron executives say

Memory chipmaker Micron Technology blew past expectations on revenue and earnings per share in its fiscal third quarter on Wednesday, but analysts were laser-focused on the company's future pricing power during the earnings call. Micron CEO Sanjay Mehrotra fielded multiple questions on the company's near-term and longer-term pricing strategy, which hinges on global supply constraints that have given memory makers tremendous leverage within tech value chains. Executives at Micron did their best to provide color to Wall Street analysts on what the company will be charging for coveted components like DRAM, NAND and high-bandwidth memory without giving away its competitive advantage. MU 1D mountain Micron Technology in the past day Speaking about a spate of newly announced customer contracts, Mehrotra gave a range for anticipated non-GAAP gross margins without giving specific numbers and suggested they might top the 84.9% reached in the third quarter. "We're not going to get into specific pricing discussions, but I just want to note again … that the gross margin – at the floor – will be well beyond the peak that we experienced, the highs that we experienced in the past … well beyond those," he said, responding to a question about DRAM. The global supply shortage of memory is what's giving the industry such pricing power, and Mehrotra said he sees supply limited beyond 2027. …