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I have covered Micron more times lately than any other stock on my beat. The Q3 earnings beat was historic. The guidance was historic. The HBM4 shipment disclosure was historic.
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And yet the stock is now trading near $970, down from a 52-week high of $1,255 reached June 25, as investors wrestle with a question the market keeps returning to: how long can this last?
On June 30, Jim Cramer sat down with Micron Chairman, President, and CEO Sanjay Mehrotra on Mad Money for what turned into one of the most substantive conversations I have seen about the memory chip shortage and what actually comes next.
Mehrotra did not hedge. He did not deflect. He answered the hard questions directly, and what he said matters for anyone trying to understand where Micron and the broader Artificial Intelligence(AI) chip supply chain go from here.
MU trades at $970 as of this writing on July 2, up 244.51% year-to-date despite the recent pullback, according to Yahoo Finance.
Also Read: Micron Technology Inc. Latest News and Stories
Why the shortage will not resolve quickly – Mehrotra’s answer to Cramer
Cramer opened with the central question the market is trying to answer. When, if ever, will the memory chip shortage resolve? Mehrotra’s answer was specific.
“The industry needs greenfield capacity. That means new construction of clean rooms. Those clean rooms take a long time from shovel in the ground to first wafers out.”
He confirmed that Micron’s first Idaho fab will have wafers out by mid-2027, with production ramping primarily in 2028. A second Idaho fab, developed with the Trump administration, comes online by the end of 2028. The New York facility follows behind that.
Tightness continues beyond 2027.
The numbers behind that statement are stark. Micron’s Q3 fiscal 2026 results, reported June 24, showed total revenue of $41.46 billion, up 346% year over year from $9.30 billion.
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Non-GAAP EPS came in at $25.11 against a $20.78 estimate. Free cash flow hit $18.30 billion, a company record. For fiscal Q4, Micron guided for $50 billion in revenue, approximately 86% gross margins, and EPS of $31.00, according to Micron’s earnings release.
HBM3E and HBM4 memory are 100% sold out through calendar year 2027, with order books extending into 2028, Silicon Analysts reports. Hyperscalers have committed $22 billion in advance cash deposits to secure supply.
That is not a cyclical bottleneck but a structural supply constraint being met with continued and accelerating demand.
HBM is not your grandfather’s memory, and Cramer pushed Mehrotra on exactly that
Cramer cut to the core of the technical challenge. “HBM is hard to make,” he said. And Mehrotra’s response is worth quoting precisely.
“Some have called it a technical marvel. Some have called it a combination of magic and science. This is not your grandfather’s memory. This is extremely advanced memory. Complex stuff. A lot of intellectual property. Micron has patents that are now approaching 65,000. HBM takes a lot more wafers to produce than standard memory, and that is putting a lot of pressure on supply as well.”
Related: Micron just dethroned Nvidia in one key way
On the earnings callpresentation, just days before this interview, Mehrotra disclosed that Micron had already shipped more than $1 billion in HBM4 at the time of reporting.
That disclosure is significant not just as a revenue milestone but as a technology signal: HBM4, the most complex memory product in the world to manufacture, is shipping at scale from the only U.S.-based advanced memory company.
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Mehrotra also mentioned that Micron has established four successive generations of DRAM technology leadership.
“Today we are a technology leader in NAND as well,” he told Cramer.
When Cramer pressed him directly on whether Micron has surpassed SK Hynix and Samsung, Mehrotra was unambiguous:
“When it comes to DRAM as well as NAND technology, we are a clear technology leader.”
Bloomberg via Getty Images
The TSMC challenge and the workforce question Cramer asked directly
Cramer raised Morris Chang’s criticism that U.S. semiconductor manufacturing costs 50% more than in Taiwan and amounts to “a very expensive exercise in futility.” Mehrotra’s response was measured but firm.
Micron has operated manufacturing in Manassas, Virginia, for years, producing advanced memory for automotive, defense, medical, and aerospace applications. The U.S. manufacturing capability is not theoretical.
The workforce question is the more legitimate near-term challenge. Cramer made it plain that he does not see enough people with the qualifications Micron needs.
Related: TSMC CEO sends blunt message to memory chip rivals
Mehrotra pointed to Micron’s $300 million commitment to building a semiconductor talent pipeline, apprenticeships, community college curriculum, and university programs across the country. “Investment in that talent is essential,” Mehrotra said.
Micron’s broader U.S. investment commitment stands at $200 billion in manufacturing and R&D, expected to create more than 90,000 jobs, according to Mehrotra.
That figure, combined with the talent development program, represents Mehrotra’s answer to the supply constraint in human capital terms as much as physical fab terms.
What the shortage means for consumers and markets beyond the data center
Cramer raised a point that I think deserves more attention in the coverage. That AI data center demand is bidding up memory prices in ways that flow directly into consumer device costs.
Smartphone memory and PC DRAM are tighter because wafer capacity is being diverted to HBM and data center SSDs. Mehrotra acknowledged the dynamic, yes, while defending the prioritization.
“Data centers and AI and U.S. leadership in AI is critically important for our economic interest as well as national security,” he said. He also noted that automotive and smartphone markets receive memory at lower prices than data center products, and that Micron maintains roughly 40% of its business in consumer markets to preserve diversification.
The structural reality he described to Cramer is the same one the earnings numbers confirm. Memory is no longer a commodity cycle. It is a strategic asset in the AI era, supply is constrained for multiple years, and the only U.S.-based company making it is Micron.
MU at $970 is off its highs, but the supply-demand dynamic Mehrotra described to Cramer has not changed. The shortage persists. The investment is accelerating. And the technology lead, in his telling, has never been stronger.
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