Micron revenue quadruples to $41.46 billion as AI boom drives memory chip shortage through 2027

The memory chip crunch is paying off for this U.S. company

The AI boom has fueled dozens of new startups and minted a new class of billionaires. It has also produced a serious shortage of memory chips -- a critical component for compute-hungry AI models -- which some predict could persist through 2027. This era of RAMageddon isn't just a corporate problem. As demand spikes and squeezes supply, prices are rising and trickling down to consumers. Apple CEO Tim Cook warned just a week ago that price increases for its products are unavoidable. But amid this Mad Max-esque fight for memory chips, some companies are coming out ahead. Micron, the largest U.S. computer-memory chip maker -- with a market cap of $1.2 trillion -- is one of them. The company reported third-quarter earnings after markets closed Wednesday, and the results sent shares soaring more than 13%. Revenue quadrupled to $41.45 billion compared with the same period a year ago. The company's profit, meanwhile, rose from $1.88 billion to an incredible $28.2 billion year-over-year. The Idaho-based company also gave investors a positive outlook, forecasting fourth-quarter revenue of between $49 billion and $51 billion. The strong results arrive the same week Micron inked a deal to supply AI lab Anthropic with memory and storage chips. Micron also disclosed that it participated in Anthropic's Series H funding round, though it didn't disclose how much it invested.

Micron forecasts strong quarterly results on soaring memory chip demand

June 24 (Reuters) - Micron Technology (MU.O), opens new tab forecast quarterly earnings above Wall Street estimates on Wednesday, signaling heavy investments in AI-related infrastructure will drive strong demand for memory chips and sending shares up more than 15% in extended trading. The company expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, compared with analysts' average estimate of $43.58 billion, according to data compiled by LSEG. The results and forecast show how the explosive growth of generative AI has turned products such as high-bandwidth memory (HBM) into critical components for large-scale data centers. The strong results add to ⁠a stock rally that allowed Micron to enter the elite $1 trillion club earlier this year on the back of its memory chip business. The stock has surged more than threefold this year, despite a 13% plunge on Tuesday as part of a broader selloff. SUPPLY CONSTRAINTS TO LAST Micron, a key supplier for Nvidia's (NVDA.O), opens new tab AI processors, has benefited as AI chip and server makers rush to secure a limited supply. Micron, the only U.S.-based manufacturer of high-end memory chips, has seen demand for its HBM chips far outstrip its production capacity, and analysts expect demand to exceed supply for the next two to three years. "The size and scale of the AI build out has been underestimated at every turn and memory will continue to command premium pricing on ⁠supply constraints," said Daniel Newman, CEO of tech research firm Futurum Group. Major memory chip makers are prioritizing high-bandwidth memory to meet AI demand, leaving consumer electronics makers scrambling to secure conventional memory and driving prices of products higher. "We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints," Micron CEO Sanjay Mehrotra said in the company's prepared remarks. "Even as ⁠we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with increasing demand," he added. SPENDING RAMPS Micron said it intends to increase its capital return, while it invests heavily ⁠in expanding infrastructure to satisfy soaring demand. The company expects fourth-quarter capital expenditure of around $10 billion, while analysts expect spending of $8.89 billion. Big Tech firms are expected to spend more than $700 billion on AI infrastructure this year, up from around $400 billion in ⁠2025. It reported third-quarter revenue of $41.46 billion, flying past estimates of $35.85 billion. The company reported adjusted profit of $25.11 per share, compared with estimates of $20.78 per share. Micron expects fourth-quarter adjusted earnings per share of $31, plus or minus $1, compared with the estimates of $25.84 per share. Reporting by Anhata Rooprai and Zaheer Kachwala in Bengaluru, Editing by Deepa Babington and Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab

Micron revenue more than quadruples as AI boom leads to soaring memory prices

Micron's revenue more than quadrupled in the fiscal third quarter, the company said on Wednesday, as the memory maker continued to benefit from soaring demand tied to the artificial intelligence boom. The stock rose about 5% in extended trading. Here's how the memory maker did versus LSEG consensus estimates: * Revenue: $41.46 billion versus $35.84 billion estimated * EPS: $25.11, adjusted, versus $20.78 estimated Revenue increased from $9.3 billion a year earlier, Micron said in a statement. For the current quarter, the company said it expects revenue of about $50 billion, up from $11.3 billion a year earlier. Analysts were looking for a revenue forecast of $43.58 billion, according to LSEG. Memory prices have skyrocketed in the last couple years as AI chips eat up all the production capacity of the small crop of vendors. With data center demand increasing by the day, prices are also rising for memory used in smartphones, laptops and other gadgets. That's turned Micron into a Wall Street darling as its technology is essential for chips made by Nvidia and Google, as well as the servers that house those companies' processors. Micron's stock price is up roughly 700% over the past year, lifting the company's market cap past $1 trillion.

Micron's revenue quadrupled as AI memory demand pushes gross margins above 81 percent

Micron Q3 revenue hit $41bn, quadrupling year-over-year on surging AI memory demand, with gross margins above 81 percent and Q4 guidance of $50bn. Micron Technology posted fiscal third-quarter revenue of nearly $42bn, quadrupling from just over $9bn a year earlier and beating Wall Street estimates by a wide margin. The results, reported on Tuesday, confirm that the company riding the AI memory boom hardest is the one whose stock has already climbed roughly 700 percent over the past year. Adjusted earnings came in above $25 a share, compared with analyst expectations of roughly $21. GAAP net income exceeded $28bn, or nearly $25 a share, up from just under $2bn in the year-ago quarter. Gross margins hit above 81 percent, up from 69 percent in the prior quarter and 27 percent a year earlier. The headline number is revenue growth. Micron brought in nearly $42bn against a consensus estimate of roughly $36bn, driven almost entirely by surging demand for high-bandwidth memory, the stacked DRAM chips that sit next to GPUs inside AI accelerators built by Nvidia and Google. HBM has become the binding constraint on AI infrastructure expansion, and Micron is one of only three companies in the world that can make it. CEO Sanjay Mehrotra said Micron can currently fulfil only between half and two-thirds of customer demand for HBM. The company's entire 2026 HBM supply is sold out under multi-year contracts, and it has collected $22bn in customer cash deposits, essentially prepayments from hyperscalers desperate to lock in supply. Micron's next-generation HBM4 chips are ramping what the company described as twice as fast as the previous HBM3E generation. HBM4 revenue has already exceeded one billion dollars. The technology is essential for the latest accelerators from Nvidia and Google, where memory bandwidth rather than raw compute increasingly determines inference throughput. The forward guidance was equally aggressive. Micron projected fiscal fourth-quarter revenue of approximately $50bn, plus or minus one billion, against analyst estimates of roughly $44bn and a year-ago figure of just over $11bn. The company raised its full-year capital expenditure forecast to more than $25bn, up from a previous target of $20bn, to expand production capacity for HBM and advanced DRAM. Micron's market capitalisation crossed one trillion dollars on 26 May, making it the latest memory chipmaker to reach that threshold as the AI-driven memory supercycle reshapes valuations across the semiconductor industry. The stock's roughly 700 percent gain over the past year reflects a market that is pricing memory not as a cyclical commodity but as structural AI infrastructure. The company said it expects the total addressable market for HBM to grow at a compound annual rate of roughly 40 percent through 2028, rising from approximately $35bn in 2025 to around $100bn. Micron plans to return 100 percent of excess free cash flow to shareholders, a commitment enabled by the cash deposit programme that reduces the capital risk of its expansion. There are caveats worth noting. Micron remains the smallest of the three HBM suppliers, behind SK Hynix and Samsung, and its share of Nvidia's HBM4 allocations is the thinnest of the trio. The broader memory market is also shifting, with Chinese manufacturers like CXMT expanding aggressively into consumer DRAM segments that the Big Three have deprioritised in favour of AI chips. Memory pricing is cyclical by nature, and the current supercycle depends on hyperscaler capital expenditure continuing at its current pace. If AI infrastructure spending slows or HBM supply catches up with demand, the margins that Micron reported this quarter would compress rapidly. The 81 percent gross margin is historically extraordinary for a memory company and reflects shortage economics as much as product superiority. For now, the numbers speak for themselves. Revenue that quadruples in a year, margins that triple, and a guidance print that exceeds estimates by more than $6bn are not normal results for any company, let alone one that was losing money two years ago. Micron's earnings confirm that the AI memory shortage is intensifying, not easing, and that the companies making the chips inside AI accelerators are capturing value at a rate the market is still recalibrating to price.

Micron posts record results as AI boom drives 15-fold jump in profit

The US chipmaker Micron Technology has reported quarterly revenue and profit far above Wall Street's expectations, as insatiable demand for the memory chips that power AI transformed the firm's fortunes. Micron, one of only a handful of companies able to make advanced memory chips at scale, said on Wednesday that revenue in the third quarter reached $41.4 billion (€36.5bn), more than four times the $9.3 billion (€8.2bn) it recorded in the same period last year. The figure also comfortably beat the roughly $35.7 billion (€31.4bn) analysts had forecast, while profit climbed even more dramatically. The Idaho-based group posted net income of $28.24 billion (€24.9bn), or $24.67 per share, against less than $2 billion (€1.7bn) a year ago. Adjusted earnings of $25.11 a share sailed past the $20.49 expected. The market reaction to the impressive results was immediate. Micron shares rose more than 15% in after-hours trading to around $1,213, leaving the company valued at roughly $1.16 trillion (€1tn). The stock has now climbed about 700% over the past year, one of the most dramatic re-ratings of any large company through the AI boom, reflecting a fundamental shift in the economics of the AI build-out. The vast data centres being constructed by hyperscalers such as Amazon, Microsoft, Google and Meta, which have collectively earmarked hundreds of billions of dollars in capital spending this year, depend on enormous quantities of high-bandwidth memory, a specialised chip that sits alongside the processors made by Nvidia and others. Micron has said its entire 2026 output of these chips is already sold out under fixed-price contracts. According to CEO Sanjay Mehrotra, the results reflect what he called the strategic value of memory in the AI era. The company pointed to a series of multi-year customer agreements that it expects to make earnings more durable and predictable, a notable claim in an industry long defined by brutal boom-and-bust cycles. Margins to rival the biggest names What has startled analysts most is Micron's profitability. The company reported a gross margin of around 85% for the quarter, a level that now rivals or exceeds those of far larger technology names such as Nvidia and Meta, an extraordinary position for a memory maker historically squeezed by volatile chip prices. The tightness of supply, with new factories not expected to add meaningful output until 2028, has handed producers exceptional pricing power. Micron's guidance was more striking still. The company expects revenue of around $50 billion (€44bn) in the current quarter and adjusted earnings of roughly $31 a share, implying the boom is accelerating rather than fading. It is ramping up investment to match, lifting planned capital spending to about $27 billion (€23.7bn) this fiscal year and signalling a further jump in 2027, management told analysts during the earnings call. The results offer reassurance to investors betting that AI infrastructure spending remains robust, with Micron's order book serving as a real-time gauge of that demand. The open question, as ever in the memory industry, is how long the upswing can last before supply catches up. Even the most bullish observers acknowledge that risk has not completely disappeared.

Micron, Qualcomm shares surge after strong quarter, new chip deals

Micron quadrupled its revenue to more than $41bn this quarter, around $6bn more than analyst expectations. A surge in business from AI companies and high projected earnings have sent chipmakers Micron and Qualcomm's shares soaring. Leading chipmakers have become some of the main benefactors of the AI race as tech giants spend billions to build and tap into AI data centres to keep up with competitors. Micron witnessed a stellar quarter, quadrupling its revenue to more than $41bn - up from $9.3bn a year earlier, and around $6bn more than analysts' set expectation of roughly $35bn. The company expects revenue of around $50bn for the current quarter, up from $11.3bn the year before. Analysts expected this to range around $43bn. Micron's shares jumped in the double digit percentage following the news yesterday (24 June), before easing marginally. They had already more than tripled this year and outpaced all other major chip stocks in the US. Alongside the glowing quarterly report, the chipmaker announced yesterday that it signed 16 long-term agreements with data centre operators and automakers. It expects financial commitments of $22bn from the deals. Nvidia has also tapped Micron for its HBM4 memory chips for its next-generation Vera Rubin platform. The surging demand drove Micron's market value to more than $1trn just last month alongside South Korean chipmaker SK Hynix. Similarly, Qualcomm said it expects to create $15bn in sales from its data centre business by 2029. The company also expects $40bn in non-handset revenue by then - around double its previous fiscal target. Company chief financial officer Akash Palkhiwala told investors that the data centre business will bring in $5bn for the fiscal year 2027 - with $1bn alone from the custom chips it will sell customers. Shares went up 15pc following the news. Microsoft and Meta have tapped Qualcomm for its new AI chips that relies on cheap memory chips used in smartphones and laptops, while two unnamed hyperscalers will purchase custom chips, the company said. Qualcomm's move to AI chips comes as the smartphone market is negatively affected in a chip shortage driven by the continuously growing demand for AI infrastructure. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Soaring memory chip demand helps Micron quadruple its revenue and crush expectations again

Soaring memory chip demand helps Micron quadruple its revenue and crush expectations again Memory chip maker Micron Technology Inc. more than quadrupled its revenue growth in the most recent quarter as it continued to benefit from surging demand linked to the artificial intelligence industry. The company reported third-quarter earnings before certain costs such as stock compensation of $25.11 per share, crushing Wall Street's target of $20.78 by a wide margin. Revenue for the period surged to $41.46 billion, up from just $9.3 billion in the year-ago quarter and well above the Street's target of $35.84 billion. Micron said its gross margin, which is its profit after accounting for the cost of goods sold, jumped to an incredible 84.9%, up from 74.9% in the previous quarter and just 39% one year earlier. All told, net income came to $28.24 billion at the end of the quarter, up from just $1.89 billion in the same period one year ago. Micron's gross margin is now the highest percentage among all major publicly traded U.S. tech companies, surpassing the previous leader Meta Platforms Inc., which recorded a gross margin of 81.9% in its latest quarter. In comparison, the AI chipmaker Nvidia Corp. only has a gross margin of 75%. It represents a remarkable increase in pricing power for a company that has long been seen as a manufacturer of a commodity product. For the current quarter, Micron said it's aiming for revenue of around $50 billion, meaning it doesn't expect to stop growing anytime soon. Wall Street has forecast sales of just $43.58 billion. The price of memory chips has skyrocketed in the last couple of years because AI chips are eating up all of the production capacity of a relatively small number of memory makers. Micron, along with Samsung Electronics Co. Ltd. and SK Hynix Inc., is one of the big three memory chip manufacturers, and none of them have been able to keep up with demand. With data center operators buying up all of the memory they can, prices are also increasing for the memory products used in personal computers, smartphones and other devices. Chief Executive Sanjay Mehrotra (pictured) told analysts on a conference call that customers are recognizing that the supply shortages in memory and storage are going to take a "considerable time to improve," even if he does believe that the supply situation will start to look better in 2028. Demand for memory has fueled a stunning rise for Micron, which is now one of the world's most valuable publicly traded companies. Its stock has risen by an extraordinary 700% in the last year, while its market capitalization last month surged past the $1 trillion mark. The stock gained more than 15% in late trading today following the report. Earlier today, Micron announced it had signed long-term contracts with 16 customers, including data center operators and automakers that lock in sales of memory chips for a period of between three and five years. "When completed, we expect approximately half or more of our company revenue to be under these agreements," Mehrotra told analysts. He explained that the customers had all signed binding agreements to purchase significant volumes of the company's memory chips. All told, those long-term agreements amount to financial commitments of around $22 billion, Mehrotra added. "This is good for Micron," insisted Chief Financial Officer Mark Murphy. "We get visibility on our demand, it's committed volume that we can be confident about making our investments." Revenue multiplied in all four of Micron's main business segments, but the most explosive growth was naturally seen in its core data center unit. There, sales increased more than sevenfold to $11.5 billion, up from just $1.53 billion in the same period one year ago. Those sales were not just about memory chips, though, with over $5 billion linked to customer purchases of solid-state storage drives, which the company also manufactures. The company also saw its cloud memory sales increase more than 300% to $13.77 billion in the quarter. Meanwhile, the mobile and client business saw revenue increase 250% to $11.52 billion, while memory sales for automotive and embedded applications gained more than 400%, rising to $4.63 billion. Micron said it plans to reward shareholders by paying out a dividend of 15 cents per share in July. Susquehanna analyst Mehdi Hosseini, who has a "buy" rating on Micron's stock, told CNBC that the company's stunning growth is all the more remarkable considering that the memory industry had been out of favor for more than 30 years prior. "With the memory wall playing out, customers have no choice but to pay a premium," he added.

Micron Stock Soars as Results Blow Past Wall Street Expectations Amid Booming AI Demand

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Could Micron be ready to resume its record-setting rally? Shares of Micron Technology (MU) were up 13% to $1,180 in extended trading Wednesday, suggesting a return to levels nearing Monday's record high, after the memory chip maker posted quarterly earnings that topped analysts' estimates and gave a rosy outlook, thanks to booming AI demand. Micron reported adjusted earnings of $25.11 per share for the fiscal third quarter on revenue that more than quadrupled year-over-year to $41.46 billion, well above the adjusted EPS of $21.05 on revenue of $36.28 billion analysts called for. Its margins surged to 84.6%, from 74.4% the previous quarter and 37.7% a year ago, as the chipmaker raised prices amid an industrywide shortage of memory parts. "Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," Micron CEO Sanjay Mehrotra said in a release, adding that the company is "investing at record levels in technology, products and supply to address our customers' rapidly growing demand." Micron forecast current-quarter revenue of $49 billion to $51 billion and adjusted earnings per share of $30 to $32, also ahead of analysts' projections compiled by Visible Alpha. Its margins are seen climbing to about 86%. Micron, which has seen its stock rise nearly 270% in 2026 through Wednesday's close, is one of the best-performing stocks in the S&P 500 this year so far. Its performance has only been surpassed by three other memory stocks: Sandisk (SNDK), Western Digital (WDC) and Seagate Technology (STX).

Micron's AI Moment: Record earnings, strong guidance and what's next - ​Micron's blowout quarter

Micron's AI Moment: Record earnings, strong guidance & what's next 1/13 Micron's blowout quarter Micron delivered one of its strongest quarters ever, reporting record revenue, profits and margins while comfortably surpassing Wall Street expectations. The company also issued guidance that exceeded analyst forecasts, reflecting sustained demand for AI memory products. Investors responded positively, sending the stock sharply higher and sparking a rally across the global semiconductor sector. (Source: CNBC, Bloomberg, MarketWatch) 2/13 Quarterly performance Micron reported record quarterly revenue and earnings, driven by surging demand for high-performance memory used in artificial intelligence applications. The company also generated record gross margins and free cash flow, highlighting the strength of its product mix and improving profitability as AI infrastructure spending accelerated. 3/13 Guidance crushes expectations The company projected another strong quarter ahead, with revenue, earnings and margins all expected to exceed Wall Street estimates. Management said demand for AI memory solutions remains exceptionally strong, giving the company confidence that growth momentum will continue over the coming quarters. 4/13 Why AI is driving everything The rapid expansion of generative AI is creating unprecedented demand for advanced memory chips. Modern AI models require significantly larger amounts of High Bandwidth Memory (HBM), DRAM and high-performance storage than previous computing workloads, making memory one of the fastest-growing segments within the semiconductor industry. 5/13 Micron's biggest competitive advantage Micron believes the market for advanced AI memory will remain supply-constrained as demand continues to exceed available manufacturing capacity. This tight supply environment is enabling the company to command stronger pricing, improve profitability and strengthen its competitive position in the AI ecosystem. 6/13 Strategic customer agreements To capitalise on this demand, Micron has secured approximately $22 billion worth of long-term customer agreements. These contracts include pricing protections, customer deposits and multi-year commitments, providing greater revenue visibility while reducing earnings volatility. 7/13 Margins reach new heights Analysts believe Micron is increasingly moving away from the traditional boom-and-bust memory cycle. The company's growing exposure to premium AI memory products is supporting higher pricing power and structurally stronger margins, prompting some analysts to describe Micron as one of technology's new "margin kings." 8/13 Analysts turn more bullish Wall Street analysts responded enthusiastically to the earnings report, raising price targets and highlighting both the magnitude of the earnings beat and the strength of future guidance. The results reinforced confidence that AI-related demand remains significantly stronger than many investors had anticipated. 9/13 Global semiconductor rally Micron's earnings boosted sentiment across the technology sector. Shares of AI chipmakers, memory manufacturers and semiconductor equipment companies rallied globally as investors viewed the results as further evidence that enterprise AI spending remains healthy and resilient. 10/13 Why this matters for Nvidia Micron plays an increasingly strategic role in the AI supply chain because advanced GPUs rely heavily on High Bandwidth Memory. As AI models become greater and more complex, demand for premium memory continues to rise, making Micron an essential supplier to companies building next-generation AI infrastructure. 11/13 Risks to watch Despite the strong outlook, investors should continue monitoring several risks. Additional industry capacity could eventually ease supply shortages, while any slowdown in AI infrastructure spending or increased competition among memory manufacturers could put pressure on pricing and profitability over time. 12/13 Investment thesis Micron's investment case is supported by robust AI infrastructure spending, sustained shortages of advanced memory, premium pricing for High Bandwidth Memory products and increasing revenue visibility through long-term customer agreements. These factors suggest the company's earnings profile is becoming stronger and less cyclical than in previous memory cycles. 13/13 Key takeaways Micron has emerged as one of the biggest beneficiaries of the global AI investment boom. Record financial performance, sustained demand for advanced memory, improving profitability and strong forward guidance indicate that AI-driven growth remains intact. As memory becomes an increasingly critical component of AI systems, Micron is well-positioned to play a central role in the next phase of the semiconductor industry's expansion.

Micron Says AI Customers Are Paying Billions Today For Memory They Won't Get Until Years Later, Sanjay Me

Micron Technology Inc. (NASDAQ:MU) said Wednesday that customers are committing billions of dollars years in advance to secure future memory supply amid a prolonged shortage driven by artificial intelligence demand. Customers Lock In Future Supply The agreements include about $22 billion in customer commitments, including roughly $18 billion in cash deposits, under contracts spanning up to five years that currently cover about 20% of Micron's DRAM volume and one-third of its NAND volume, which is expected to eventually account for half or more of its revenue. Memory Tightness To Continue The company said it still does not have line of sight into when memory supply will catch up with AI-driven demand. "We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments, coupled with structural supply constraints," Mehrotra told analysts. Much of the world's advanced memory supply is produced in South Korea, where SK Hynix and Samsung Electronics dominate the high-bandwidth memory market used in AI accelerators. AI Reshapes The Memory Business Micron has been one of the biggest winners of the AI boom, with shares soaring 232.23% year-to-date and 719.26% over the past year, despite Tuesday's 13% selloff during the broader tech rout. The company said AI demand is expanding beyond data centers into smartphones, PCs, automotive applications, industrial markets and robotics, broadening the long-term market for memory and storage products. Earnings Beat Wall Street estimates It expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, versus estimates of $42.95 billion, and expects adjusted earnings of $31 per share, plus or minus $1, versus estimates of $25.50 per share. Price Action: Shares of Micron closed 0.3% lower at $1,048.51, but gained 15.78% to $1,213.96 in after-hours trading post the results. Bezninga edge rankings indicate MU has a Momentum score in the 99th percentile and a Growth score in the 82nd percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Micron stock surges after Micron earnings report crushes estimates: How is AI demand driving Micron to new heights and what does it mean for the future?

Micron's revenue has surged by over four times, reaching $41.46 billion in its fiscal third quarter, driven by the booming AI sector and a global memory crunch. The company's stock saw a significant jump as soaring demand for memory chips, essential for AI hardware and data centers, propelled exceptional financial results. Micron anticipates continued strong performance, with future revenue projections also exceeding expectations. Micron delivered a standout earnings report, showing how strongly the artificial intelligence boom continues to reshape the semiconductor industry. The company easily beat Wall Street expectations and issued a stronger-than-expected forecast, sending its stock soaring in extended trading. The latest results highlight how central memory technology has become in the ongoing AI boom, as per a report by CNBC. The memory chip maker reported fiscal third-quarter results that comfortably surpassed analyst estimates, while also providing an upbeat outlook for the current quarter. The strong performance sparked a major rally in the company's shares as investors reacted to the results. Micron Earnings Report Micron reported revenue of $41.46 billion for the quarter, well above the $35.84 billion analysts had expected. Adjusted earnings per share came in at $25.11, beating consensus estimates of $20.78. Micron stock hits a new high with a 13% rise in after-hours trading, as per a report by CNBC. You Might Also Like: Nancy Guthrie case mystery deepens as investigators focus on anonymous tipster linked to ransom messages-here's what you need to know The company's revenue more than quadrupled compared with the same period a year ago, when sales totaled $9.3 billion. Looking ahead, Micron forecast approximately $50 billion in revenue for the current quarter, significantly above analyst expectations of $43.58 billion, as per a report by CNBC. Profitability also improved dramatically. Gross margin climbed to 84.9%, compared with 74.9% in the previous quarter and 39% a year earlier. Net income reached $28.24 billion, or $24.46 per share, compared with $1.89 billion, or $1.68 per share, during the same quarter last year. You Might Also Like: Psychology says people who decline invitations more often as they get older may not be becoming unfriendly: Here's why they may be becoming more selective How is AI driving memory demand? The company's remarkable growth has been fueled by soaring demand for memory and storage products used in artificial intelligence systems. As AI infrastructure expands globally, memory suppliers have struggled to keep up with demand, leading to higher prices across the industry. "Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve, even as we expect industry supply to improve gradually in 2028," Micron CEO Sanjay Mehrotra said on a call with analysts. Micron supplies technology that is critical for processors developed by Nvidia and Google, as well as the servers that power AI workloads. The company's stock has risen roughly 700% over the past year, pushing its market value beyond $1 trillion, as per a report by CNBC. You Might Also Like: Psychology says people who stop posting their personal lives on social media aren't antisocial; they may be becoming more secure Data center demand was particularly strong. Revenue from the company's core data center business surged more than sevenfold to $11.5 billion, compared with $1.53 billion a year earlier. Micron also reported more than $5 billion in data center solid-state drive revenue. Cloud memory sales increased more than 300% to $13.77 billion. What's next for Micron? Micron also revealed that it has secured 16 long-term agreements with customers, including data center operators and automakers. These contracts lock in sales commitments for periods ranging from three to five years. "When completed, we expect approximately half or more of our company revenue to be under these" strategic customer agreements, Mehrotra said. He added that the deals include binding purchase commitments for Micron products. The company expects financial commitments worth $22 billion from these agreements. "This is good for Micron," CFO Mark Murphy told analysts. "We get visibility on our demand, it's committed volume that we can be confident about making our investments." Beyond data centers, growth was broad-based. Revenue in the mobile and client business unit rose more than 250% to $11.52 billion, while automotive and embedded memory sales more than quadrupled to $4.63 billion. With memory prices remaining elevated, AI infrastructure spending accelerating, and major customer agreements now in place, Micron appears positioned for continued momentum. The company also announced that shareholders will receive a dividend of 15 cents per share in July, adding another positive note to an already impressive quarter. FAQs Why did Micron stock jump? Strong earnings, rising memory prices, and booming AI demand lifted investor confidence. What helped drive Micron's growth? Demand from data centers, cloud computing, smartphones, and other technology sectors fueled sales. You Might Also Like: Quote of the day by influential Harvard cognitive psychologist Steven Pinker: 'We will never have a perfect world, but...'-Life lessons on progress, optimism, reason, resilience, and building a better future

Micron Didn't Beat Expectations, It 'Annihilated' Them, Says This Analyst: MU Stock Pops Over 15% After H

Micron Crushes Estimates As AI Demand Drives Growth Micron reported third-quarter revenue of $41.46 billion, topping analyst estimates of $35.59 billion, while adjusted earnings came in at $25.11 per share, ahead of expectations for $20.63 per share. Total revenue jumped approximately 346% from a year earlier. The company also issued a strong forecast for the fourth quarter, projecting revenue of $50 billion, plus or minus $1 billion, and adjusted earnings of $31 per share, plus or minus $1. Analysts had been expecting revenue of $42.95 billion and earnings of $25.50 per share. Micron's board also declared a quarterly dividend of 15 cents per share. Analysts Point To Years Of AI-Driven Demand Following the results, Deepwater Asset Management's managing partner Gene Munster said the report suggests the AI infrastructure buildout remains in its early stages. "Results and guide show we are still early in the AI buildout," Munster wrote on X. Munster also pointed to comments from Micron's chief financial officer indicating the company expects to remain supply-constrained through fiscal 2028. He described the remarks as a significant positive for the AI trade and evidence that demand could continue to outpace supply for the next two years. Investor Gary Black echoed that view, noting Micron "blew away" third-quarter estimates and guided materially above consensus expectations. Black said shortages in memory chips have persisted as demand from AI, data centers, smartphones and other markets continues to exceed available supply. Micron 'Annihilated Expectations,' Says Daniel Newman Futurum Group CEO Daniel Newman was also among the bullish voices following the report. "$MU didn't just beat. It annihilated expectations," Newman wrote on X, while describing the company's projected gross margins of roughly 86% as "insane." Moor Insights & Strategy CEO Patrick Moorhead struck a more cautious tone. While acknowledging strong demand for high-bandwidth memory and AI-related products, he warned that memory markets have historically been cyclical and could face pressure if industry supply eventually catches up with demand. "This is my ninth memory cycle. Constructive on the cycle, skeptical on the trade," he wrote on the social media platform. Benzinga Edge Rankings place Micron in the 99th percentile for Momentum, reflecting robust gains across short, medium and long-term time frames. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: gguy on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Micron forecasts strong quarterly results on soaring memory chip demand - The Korea Times

Micron logo is seen in this illustration taken June 11. Reuters-Yonhap Micron forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in future supply of memory chips, sending its shares surging 12 percent in after-hours trading. The forecast -- and third-quarter results that beat Wall Street estimates -- underscore how AI-driven shortages are forcing Micron's large-scale data center customers and other chip buyers to fund capacity, moves that are reshaping the memory market. Micron, which is the only U.S.-based manufacturer of high-end memory chips used alongside Nvidia's AI processors, has seen demand for these HBM chips far outstrip its production capacity. "We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints," Micron CEO Sanjay Mehrotra said in the company's prepared remarks. Micron's stock has surged more than threefold this year, despite a 13 percent plunge on Tuesday as part of a broader selloff. The chipmaker also outlined a business model shift aimed at making demand less cyclical. The $22 billion in commitments will come from 16 strategic customer agreements Micron has signed, spanning data center, consumer and automotive markets, with take-or-pay commitments, cash deposits and pricing floors designed to lock in supply and protect margins. Micron also said that remaining performance obligations -- a key indicator of future contracted revenue -- for the customer agreements it has entered into so far are around $100 billion. Supply constraints to last Micron, a key supplier for Nvidia's AI processors, has benefited as AI chip and server makers rush to secure a limited supply. "The size and scale of the AI build out has been underestimated at every turn and memory will continue to command premium pricing on supply constraints," said Daniel Newman, CEO of tech research firm Futurum Group. Major memory chip makers are prioritizing high-bandwidth memory to meet AI demand, leaving consumer electronics makers scrambling to secure conventional memory and driving prices of products higher. Mehrotra added that the company does not have a line of sight as to when memory supply will be able to catch up with increasing demand. "Any easing in supply could actually skew bearish for Micron. The bull case is built on tightness, once supply starts to creep back, pricing power is the first thing at risk," said Jake Behan, head of capital markets at Direxion. Spending ramps Micron said it intends to increase its capital return, while it invests heavily in expanding infrastructure to satisfy soaring demand. The company expects fourth-quarter capital expenditure of around $10 billion, while analysts expect spending of $8.89 billion. Separately on Wednesday, SK Hynix said it plans to raise up to $29.4 billion through a U.S. stock market listing. Micron reported third-quarter revenue of $41.46 billion, flying past estimates of $35.85 billion. The company reported adjusted profit of $25.11 per share, compared with estimates of $20.78 per share. Micron expects fourth-quarter adjusted earnings per share of $31, plus or minus $1, compared with the estimates of $25.84 per share.

Raymond James raises Micron stock price target on strong AI demand By Investing.com

Investing.com - Raymond James raised its price target on Micron Technology stock (NASDAQ:MU) to $1,500 from $1,100 while maintaining an Outperform rating. The firm cited Micron's May quarter results and August guidance, which exceeded consensus expectations. Raymond James views Micron as a key beneficiary of the current memory cycle. The stock has delivered an exceptional 726% return over the past year, reflecting strong investor confidence in the memory cycle recovery. AI-driven demand and supply tightness continue to support pricing and margins, leading to a shift in the company's business model through multiyear strategic agreements. The analyst noted strong execution in HBM4, following success with HBM3E last year. The company's gross profit margin stands at 58%, while revenue surged 86% in the last twelve months. According to InvestingPro analysis, 15 analysts have revised their earnings upwards, though the stock currently appears overvalued relative to its Fair Value. Investors can access additional ProTips and comprehensive analysis through InvestingPro's detailed Pro Research Report. The AI opportunity is expanding beyond HBM into conventional DRAM and enterprise SSD. Raymond James acknowledged difficulty in modeling the company under current supply and demand conditions. The firm expects its estimates will likely prove conservative under current market conditions, particularly given more rational industry behavior regarding new capacity builds. In other recent news, Micron Technology has reported impressive financial results and guidance, leading to a series of analyst upgrades. The company's third-quarter fiscal 2026 revenue reached $41.5 billion, a significant increase of 346% year-over-year, surpassing the consensus estimate of $36.3 billion. NAND revenue exceeded expectations by 27%, while DRAM revenue was 11% above forecasts. These results have prompted DA Davidson to raise its price target for Micron to $2,000, maintaining a Buy rating. Similarly, Susquehanna increased its price target to $2,000, citing confidence in Micron's ability to sustain high gross and operating margins. JPMorgan also raised its price target to $1,540, noting the expansion of Micron's Strategic Customer Agreements to 16 signed contracts. KeyBanc followed suit with a new price target of $1,600, emphasizing strong quarterly results and favorable DRAM and NAND pricing trends. RBC Capital increased its price target to $1,500, highlighting Micron's longer-term supply agreements, which cover approximately 25% of revenue. These developments indicate strong market confidence in Micron's future performance. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

BofA raises Micron stock price target on AI memory demand strength By Investing.com

Investing.com - BofA Securities raised its price target on Micron Technology (NASDAQ:MU) to $1,550 from $1,500 while maintaining a Buy rating on the shares. The stock currently trades at $1,048.51, having delivered an extraordinary 726% return over the past year. The firm cited Micron's strong quarterly results and the company's expanding strategic customer agreements, which now total 16, up from the previous quarter. According to InvestingPro data, 15 analysts have revised their earnings upwards for the upcoming period, reinforcing the bullish sentiment. The company's revenue surged 85.6% over the last twelve months, reflecting robust demand in AI memory markets. These agreements include take-or-pay terms and price floor and ceiling provisions running for five-year terms from 2026 through 2030. BofA noted that AI DRAM and NAND bit shipments in 2026 have more than doubled since 2024. The firm said memory now represents approximately 35% of AI capital expenditures for customers. The firm raised its out-year earnings per share estimates by 4% to 7%. The new price target is based on a sum-of-the-parts valuation that assigns approximately 3 times book value to core memory operations, compared with 2.5 times previously, and 31 times price-to-earnings for data center and AI operations. BofA said the strategic customer agreements are expected to comprise at least half of company revenue after execution. The firm projects free cash flow margins could approach 50% to 60%, with potential for $32 billion in share buybacks for fiscal year 2027 representing 25% of potential free cash flow generation. For deeper insights, Micron is one of 1,400+ US equities covered by comprehensive Pro Research Reports, available exclusively on InvestingPro. In other recent news, Micron Technology reported fiscal third-quarter 2026 results that exceeded Wall Street expectations in both profit and revenue. The company posted adjusted earnings of $25.11 per share, surpassing the analyst estimates of $20.49 per share. Revenue also outperformed expectations, reaching $41.46 billion compared to the projected $35.69 billion. These strong financial results reflect Micron's continued growth and robust performance in the memory-chip sector. The positive earnings report has caught the attention of analysts and investors alike, highlighting the company's ability to deliver above-market results. While the earnings figures are a key focus, the report did not include any mention of mergers or acquisitions. Furthermore, there were no recent analyst upgrades or downgrades reported in conjunction with these earnings results. Micron's performance continues to be a topic of interest in the investment community. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Micron Smashes Expectations, Confirming Persistent Memory Scarcity Scenario

Micron Technology delivered results that significantly exceeded expectations, confirming the tightening conditions in the DRAM and NAND memory markets. The most advanced versions of these chips, such as HBM, have become essential components of artificial intelligence infrastructure. Third-quarter fiscal revenue reached $41.46bn, compared to the $35.91bn expected and $9.30bn a year earlier. Adjusted earnings per share came in at $25.11, well above the consensus estimate of $20.86. The stock jumped approximately 10% in after-hours trading, representing nearly $120bn in additional market capitalization. The shares have now posted a gain of roughly 280% since the beginning of the year, reflecting a sharp shift in perception regarding the American memory chip specialist: historically a cyclical player, it is now positioned at the heart of the AI bottleneck. Profitability also reached a significant new milestone, with adjusted gross margin hitting 84.9%, up from 74.9% in the previous quarter, driven by higher average selling prices and a more favorable product mix. Management emphasized that memory has become a strategic asset in the AI ecosystem, with CEO Sanjay Mehrotra citing the "strategic value of memory in the AI era." At the same time, Micron raised the bar for the current quarter, forecasting revenue of around $50bn and adjusted earnings per share of approximately $31. Although the group anticipates a gradual improvement in supply by 2028, management stated they do not have "visibility on when memory supply will be able to catch up with the surge in demand."

Micron 3Q Revenue Soars on Continued Memory Demand

Micron Technology reported a more than fourfold increase in revenue in its latest quarter, boosted by continued strong demand for its memory chips. The company on Wednesday reported a third-quarter profit of $28.24 billion, or $24.67 a share, compared with a profit of $1.89 billion, or $1.68 a share, a year earlier. Stripping out certain one-time items, Micron reported adjusted earnings of $25.11 a share. Analysts polled by FactSet were expecting $20.86 a share. Revenue surged to $41.46 billion, up from $9.3 billion a year prior and beating analyst expectations of $35.91 billion. Micron has been reaping the benefits of an industry-wide shortage of memory technology, an important component of artificial-intelligence hardware. The company signed a long-term supply agreement with Anthropic and invested in the AI lab earlier this week, although financial terms weren't provided. "Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," Chief Executive Sanjay Mehrotra said. "We believe our multiyear strategic customer agreements will significantly enhance the durability and predictability of Micron's strong financial performance." But the stock has also been hit by investor worries about runaway tech valuations, high AI capital spending, and possible interest rate increases from the Federal Reserve. Micron shares closed Wednesday at $1,047.92, down 12% this week but up nearly fourfold since the start of the year. Shares rose 7.6% in after-hours trading to $1,128.00. For the current fourth quarter, the company is projecting adjusted earnings between $30.00 and $32.00 a share on revenue between $49 billion and $51 billion. Analysts expect adjusted earnings of $25.72 a share on $43.58 billion in revenue.