Micron surges 19% on blockbuster AI memory earnings
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- Micron reported fiscal Q3 revenue of $41.46 billion, more than quadrupling from $9.3 billion a year earlier and beating LSEG consensus estimates of nearly $36 billion.
- Micron stock climbed as high as 19% on Thursday, briefly pushing its market cap above Meta and Tesla among the most valuable U.S. companies.
- Micron forecast roughly $50 billion in revenue for the current quarter, up from $11.3 billion in the prior-year period.
- Micron has signed 16 long-term agreements (3-5 years) with customers spanning data centers to automakers, locking in expected financial commitments of $22 billion.
- RBC Capital Markets analysts noted about 40% of Micron's revenue will come from long-term contracts with built-in minimum pricing, and reiterated an Outperform rating, saying the upcycle could continue through 2027.
- Chip stocks including Qualcomm, Intel, and AMD climbed in early Thursday trading before paring gains, reversing a sharp selloff that had hit Nvidia and others earlier in the week.
Why it matters: Micron's $41.46 billion quarter and 16 long-term contracts locking in $22 billion in commitments show AI memory demand has structural staying power. The supply squeeze hitting smartphones and PCs intensifies for non-AI buyers, while rival chip names got only a brief relief bounce after this week's Nvidia-led selloff — Qualcomm, Intel, and AMD all gave back their early gains.
