Micron Technology profit and revenue surged in the fiscal fourth quarter, as the company said the shortage of memory chips that has propelled its explosive growth in the past year shows no signs of slowing down.

"Industry demand has strengthened since our last earnings call, and we expect memory and storage supply demand conditions to be much tighter in fiscal 2027 and 2028 than they were in 2026," Chief Executive Sanjay Mehrotra said on a Wednesday call with analysts.

Mehrotra's comments come as investors have debated the durability of the memory shortage that has fueled Micron's blowout earnings. In June, he told analysts that the memory crunch would last past 2027, but struck somewhat of a softer tone than he did on Wednesday.

Micron has been working to boost its production capacity for memory, and Mehrotra said several fabs are on track to start production over the next two years. Still, the magnitude of the supply imbalance, especially for a type of memory called DRAM, means that Micron will need to increase its capital expenditures in the new fiscal year, he said.

The company guided for around $25 billion in capital expenditures in the first half of the fiscal year, including about $11.5 billion in the first quarter. Capital spending is expected to rise further in the second half of the year. Most of the increased spending is expected to go toward construction, the company said.

"We are focused on our global manufacturing expansions to help address customer demand growth through the end of this decade and beyond," Mehrotra said.

The company also disclosed that it had signed 26 long-term supply agreements with customers looking to lock up their share of the scarce memory chips, up from 16 in June, and totaling $32 billion in financial commitments. Some of those agreements extend into 2031, Mehrotra said, and they together represent more than 35% of the company's expected revenue through 2030.

Micron on Wednesday reported a profit of $37.7 billion, or $32.87 a share, in the quarter ended Sept. 3, up from $3.2 billion, or $2.83 a share, a year earlier.

On an adjusted basis, earnings were $33.42 a share. Analysts polled by FactSet were projecting $31.72 a share.

Revenue rose sharply to $54.23 billion from $11.32 billion a year prior. Analysts were expecting $51.33 billion in revenue.

For the current first quarter, Micron is projecting adjusted earnings of between $37.15 and $39.15 a share on revenue of $60 billion to $63 billion.

Analysts currently expect $35.47 a share in adjusted earnings on $57.4 billion in revenue.

Shares were down 0.8% at $1,057.00 in after-hours trading on Wednesday.