Micron Technology reported a sharp jump in both profit and revenue for its fiscal fourth quarter.

The company posted fourth-quarter profit of $37.7 billion, compared with $32 billion in the same period a year earlier.

Micron Technology said the memory chip shortage that fueled its explosive performance over the past year shows no signs of easing.

"We have seen demand strengthen further since our last earnings call," Chief Executive Sanjay Mehrotra said on a Wednesday analyst call. "We expect memory supply and demand tightness in fiscal 2027 and 2028 to be far greater than in fiscal 2026."

Investors have been debating whether the current memory chip shortage can last, and Micron's strong results stem precisely from chips being in short supply. Back in June, Mehrotra told analysts the chip shortage would persist beyond 2027, but his remarks then were less forceful than his comments on Wednesday.

Micron has been working to expand memory chip capacity. Mehrotra said several wafer fabs are on track to come online over the next two years. But he also noted the supply-demand gap is enormous, especially for DRAM memory, meaning Micron will need to further raise capital spending in its next fiscal year.

Company guidance shows capital spending of about $25 billion in the first half of this fiscal year, including roughly $11.5 billion in the first quarter, with spending expected to keep rising in the second half. Micron said the vast majority of the new investment goes toward factory construction.

"We are fully committed to expanding our global manufacturing capacity to meet growing customer demand through the end of this decade and beyond," Mehrotra said.

Micron also disclosed that it has signed 26 long-term supply agreements with customers to lock in scarce memory chips, up from just 16 in June; the deals carry a total value of $32 billion. Mehrotra said some agreements run through 2031, and by 2030 these long-term contracts will collectively account for more than 35% of Micron's expected total revenue.

For the quarter ended September 3, Micron reported net income of $37.7 billion, or $32.87 per share, versus net income of $32 billion, or $2.83 per share, a year earlier. Adjusted earnings per share came in at $33.42, above the $31.72 analysts surveyed by FactSet had expected.

Quarterly revenue soared to $54.23 billion from $11.32 billion a year earlier, while analysts had expected $51.33 billion.

For the current first quarter, Micron guided adjusted earnings per share of $37.15 to $39.15 and revenue of $60 billion to $63 billion. Market analysts had expected adjusted earnings per share of $35.47 and revenue of $57.4 billion.

In pre-market trading on Thursday, Micron shares fell 0.8% to $1,057.