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Micron's Next Big AI Opportunity Could Have 2 Legs
Key Points
Micron's CEO noted, following the company's Sept. 30 earnings call, that robotics and physical AI could be a major driver of demand by the end of the decade.
That could potentially mean "server-level memory into millions of machines" outside of data centers, according to a Wall Street analyst.
Micron is one of the best-performing stocks in the S&P 500 this year, and it may just be getting started.
Micron Technology (NASDAQ:MU) has been one of the best-performing stocks in the S&P 500 this year, as it plays a critical role in the growth of artificial intelligence and the infrastructure that powers the technology. Micron is the only major U.S.-based manufacturer of high-bandwidth memory that is needed for AI, and that's pushed Micron stock up more than 265% this year.
But following the company's earnings report for its fiscal fourth quarter of 2026, CEO Sanjay Mehrotra identified another fascinating growth opportunity for Micron -- robotics. To be specific, humanoid robots that utilize AI.
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Speaking to analysts on the company's earnings call, Mehrotra cited the growth of physical AI through autonomous vehicles, which he says require more than 200 gigabytes of memory and multiple terabytes of storage.
"Humanoid robots are expected to have comparable memory and storage requirements to autonomous vehicles," Mehrotra said. "With the anticipated increase in both units and memory content, physical AI can become a significant driver of memory and storage demand by the end of this decade. Several physical AI customers are sampling our next-generation products, and we are increasing investments in our technology roadmap to ensure we are prepared to capitalize on this opportunity."
Image source: Getty Images.
Micron is already seeing huge increases in revenue and profits from growing demand from data centers. If growth in physical AI, such as robotics and autonomous vehicles, continues to increase, Micron could be looking at the beginning of a very long growth cycle.
About Micron stock
There are two major types of memory -- NAND, which is for long-term storage; and DRAM (dynamic random-access memory), which holds information for the short term. Think of it like this: your laptop needs DRAM to hold data while an app or program is running, and NAND holds data after your device is turned off.
DRAM provides fast access to the data that processors need, and high-bandwidth memory, a specialized form of DRAM, delivers the extremely high data-transfer speeds required by AI processors. Whether AI is operating in a data center or helping to power a robot, DRAM plays a critical role.
Revenue in the fiscal fourth quarter (ending Sept. 3) was $54.23 billion, up 379% from a year ago and 31% on a sequential basis. Micron reported net income of $37.7 billion, an increase of 1,077% from the previous year. Diluted earnings per share came in at $32.87 versus $2.83 per share last year.
Full-year revenue was $133.19 billion, up from $37.38 billion a year ago. Diluted earnings exploded to $74.33 per share, up from $7.59 per share in fiscal 2025.
Micron saw strong growth in all of its business units.
| Unit | Q4 2026 | Q4 2025 | Percentage Gain |
|---|---|---|---|
| Cloud Memory | $16.28 billion | $4.54 billion | 258% |
| Core Data Center | $18.0 billion | $1.58 billion | 1,041% |
| Mobile and Client | $13.11 billion | $3.76 billion | 248% |
| Automotive and Embedded | $6.82 billion | $1.43 billion | 375% |
Source: Micron
"Micron delivered record fiscal 2026 results, and we expect an even stronger fiscal 2027," Mehrotra said. Management issued guidance for revenue between $60 billion and $63 billion for the first quarter of fiscal 2027. The midpoint would represent a 339% increase from Q1 2026, when Micron recorded revenue of $13.64 billion.
What do AI robots potentially mean for Micron?
According to Futurum Equities analyst Shay Boloor, the potential is large. In a post on X, Boloor noted that adding 200 gigabytes of DRAM -- the amount used by autonomous vehicles -- to humanoid robots is "effectively putting server-level memory into millions of machines outside the data center."
And robotics is not far-fetched. Tesla has huge plans for its Optimus robots, which CEO Elon Musk plans to make commercially available and capable of household chores, caring for children, and caring for the elderly. Tesla has shut down its Model S and Model X electric vehicle lines to ramp up Optimus production.
Humanoid robotics represents a potentially lucrative market for Micron, which is already seeing incredible growth for its memory products. That could extend Micron's growth window well beyond the current AI infrastructure build-out.
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Tesla. The Motley Fool has a disclosure policy.
