Micron Posts $41.5 Billion Q3 Revenue, Lifts Q4 Outlook on AI Memory Demand
Updated
Updated · The Motley Fool · Jul 9
Micron Posts $41.5 Billion Q3 Revenue, Lifts Q4 Outlook on AI Memory Demand
3 articles · Updated · The Motley Fool · Jul 9
Summary
Micron reported fiscal third-quarter revenue of $41.5 billion and net income of $28.2 billion for the period ended May 28, crushing analyst expectations as AI-memory demand surged.
Q4 guidance pointed even higher: Micron forecast $50 billion in revenue and $30.73 a share, versus Wall Street expectations of about $42.5 billion.
HBM demand is driving the boom — Micron said all 2026 output is sold out and its full production capacity is already presold through 2027.
Pricing power has widened margins across key businesses, with cloud-memory revenue up 78% sequentially and data-center revenue up 103% as tight supply lets Micron raise prices.
Sixteen new customer agreements with three- and five-year terms are meant to lock in pricing and cash flow, with management expecting at least half of revenue to be under those contracts by term-end.
How will the AI chip boom's 'memflation' affect the price of your next car or phone?
What single event could pop the AI memory bubble before the decade's end?
Micron Surges Past $1 Trillion: Q3 2026 Blowout Driven by AI Memory Demand and HBM Leadership
Overview
Micron set a new benchmark in fiscal Q3 2026, ending May 2026, with explosive growth and profitability that exceeded investor expectations. The market responded strongly, driving Micron’s stock up about 242% and pushing its value past $1 trillion by early July. This surge was fueled by robust demand for AI memory, especially High-Bandwidth Memory, and was further supported by optimistic guidance for the next quarter. Investors had anticipated strong results quarter after quarter, and Micron’s performance, along with its forward-looking strategy, reinforced confidence in its leadership within the semiconductor industry.