Micron stock jumps 15% as revenue more than quadruples
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- Micron fiscal Q3 revenue of $41.46 billion topped the $35.84 billion LSEG estimate, with adjusted EPS of $25.11 beating the $20.78 forecast; revenue climbed from $9.3 billion a year earlier.
- Micron stock rose 15% in extended trading, pushing its market cap past $1 trillion; shares are up roughly 700% over the past year.
- Micron guided current-quarter revenue of about $50 billion versus $11.3 billion a year earlier, easily clearing the $43.58 billion analyst estimate.
- Micron signed 16 long-term agreements (three to five years) with data center operators and automakers, locking in $22 billion in financial commitments that CEO Sanjay Mehrotra said will cover half or more of company revenue.
- Micron's data center sales more than sevenfolded to $11.5 billion from $1.53 billion a year ago, cloud memory revenue jumped over 300% to $13.77 billion, and gross margin surged to 84.9% from 39% a year earlier.
- Sanjay Mehrotra told analysts memory supply shortages will take "considerable time to improve," with industry supply improving gradually in 2028.
Why it matters: Micron's $22 billion in long-term, three-to-five-year contracts covering half its revenue fundamentally rewrites the memory-maker's risk profile, converting what was a notoriously cyclical business into one with locked-in AI demand visibility. With data center sales up 7x year-over-year and gross margins at 84.9% (vs 39% a year ago), Micron now functions as a structural bottleneck in the AI chip supply chain alongside Nvidia and Google — and Mehrotra's 2028 supply-recovery timeline means pricing power persists for years.
