Micron's Record $54 Billion Quarter Shows the Memory Chip Crunch Isn't Over: What It Could Mean for Laptop and Phone Shoppers

The chips that help your laptop and phone run are in high demand thanks to AI. That's great for chipmakers, but it may not be great for your tech budget.

Micron Technology, one of the world's biggest makers of memory chips, reported record results on Wednesday, September 30.

For its fiscal fourth quarter, Micron said revenue reached about $54.2 billion. That is up from $11.3 billion in the same quarter a year earlier, nearly five times as much. For its full fiscal year, revenue was $133.2 billion, compared with $37.4 billion the year before.

Micron also said it expects revenue of about $61.5 billion, give or take $1.5 billion, in its next quarter.

What memory chips are and why they matter

Every computer, phone, game console and many cars need memory chips. One main type is DRAM (dynamic random-access memory), which helps a device run apps and juggle tasks. Another type, NAND flash, stores your photos, files and apps.

Micron's DRAM revenue alone was $39.8 billion in the quarter, up 343% from a year earlier, according to Gizmodo.

Why there is a shortage

The main driver is artificial intelligence. Companies building AI systems need huge amounts of advanced memory for their data centers. That demand has soaked up much of the world's supply.

Micron's chief executive, Sanjay Mehrotra, said, "Superintelligence is creating the most compelling opportunity for Micron in its history," using the company's term for increasingly advanced AI.

When supply is tight and demand is high, prices rise. Gizmodo reported that the shortage has made RAM one of the most expensive parts of building a PC, and that some device makers are selling laptops with older parts or less memory.

An analyst quoted by Gizmodo, Hendi Susanto, said he had not heard any signs that the memory cycle is "reversing toward a decline anytime soon."

What this means for your wallet

Micron's results don't set the prices you pay at the store. But they are a strong signal that memory is still scarce and costly, and that cost can show up in the price or the specs of the devices you buy.

If you are planning to buy a laptop, phone, tablet or gaming PC, here are some things to consider:

• Check the specs, not just the price. A lower-priced laptop may come with less memory or storage than you need. Check what your school, job or favorite software recommends before you buy.
• Compare last year's models. Older models may offer good value, especially if they already have the memory and storage you need.
• Consider upgrading what you have. Some laptops and desktops let you add memory or a bigger storage drive, which can cost less than a new device.
• Shop sales, but plan ahead. Fall and holiday sales can help, but if you need a device for school or work, set a budget first so a deal doesn't push you to overspend.
• Think about trade-ins and refurbished devices. Certified refurbished products often come with a warranty and can cost less than new ones.

If you own Micron stock or a fund that holds chip companies, these results may be good news. But remember that chip stocks can rise and fall sharply, and one great quarter does not guarantee future results.