Stock futures look ready to rebound today, for real this time. Futures on the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) are both confidently higher, but the bigger story is the beleaguered tech sector. Thanks to a beat-and-raise from Micron (MU), semiconductor and memory stocks are buzzing after their recent sharp selloff.
The Nasdaq-100 (NDX) is poised to recoup yesterday's losses, and then some. Investors are also finding some encouragement in the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) index, which rose by 0.4% in May, in line with expectations. On an annual basis, the 4.1% annual rate hit its highest level since October 2023.
Continue reading for more on today's market, including:
Solar stock has quite the bullish thesis. Our summer stock picks are off to a hot start. Plus, more on Micron; Big Blue's breakthrough; and Darden earnings disappoint.
5 Things You Need to Know Today The Cboe Options Exchange saw roughly 2.3 million call contracts and 1.3 million put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.56, while the 21-day moving average remained at 0.58. Micron Technology Inc (NASDAQ:MU) stock is 17.6% higher before the bell, after the chip giant reported third-quarter earnings and revenue that blew past estimates. No fewer than 10 brokerages have hiked their price targets in response, the highest coming from Needham to $1,650. Micron stock is up 719% in the last 12 months. IBM Corp (NYSE:IBM) stock is up 3.1% ahead of the open, after Big Blue unveiled the world’s first sub‑1nm ‘nanostack’ chip technology, with production targeted within about five years. IBM stock is down 11.2% in 2026 going into today. The shares of Darden Restaurants Inc (NYSE:DRI) are 3% lower in electronic trading, after the Olive Garden parent reported fiscal fourth-quarter revenue that missed expectations. DRI is 16% higher in 2026, but below its year-over-year breakeven level. This week will bring several key economic indicators.
Micron Helps Overseas Stocks Rally Asian markets closed mostly higher on Thursday as Micron earnings gave tech stocks a lift globally. The South Korean Kospi jumped 5.4%, as SK Hynix and Samsung Electronics surged, while Japan’s Nikkei rose 4.6%, and China’s Shanghai Composite added 0.2%. Hong Kong’s Hang Seng was the only loser, sinking into the red with a 1.4% drop.
Tech is giving European markets a lift as well. The German DAX is leading the gainers with a 0.7% pop, while London’s FTSE 100 and the French CAC 40 are 0.6% and 0.5% higher, respectively.
SummaryMicron Technology, Inc. delivered a blowout Q3, with EPS of $25.11 and revenue up 346% to $41.5B, driving shares near all-time highs.MU's AI-driven DRAM and NAND demand, record free cash flow, and strategic five-year customer agreements underpin robust forward visibility and margin strength.Guidance signals structurally tight supply through 2027, with high-bandwidth memory TAM potentially reaching $100B and expectations for astronomical FY26–27 EPS growth.I maintain a Buy rating on MU, citing operational excellence, high margin durability, and technical momentum, while flagging volatility and cyclical risks. JHVEPhoto/iStock Editorial via Getty Images
Micron Technology, Inc.’s (MU) Q3 numbers and outlook stunned the Street on Wednesday evening, June 24. Shares surged 19% by the following morning, bringing the memory/storage stock back to near its
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, NVDA, AMD, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
CompaniesJune 25 (Reuters) - Micron Technology (MU.O), opens new tab edged past the market valuation of Meta Platforms (META.O), opens new tab and briefly Tesla's (TSLA.O), opens new tab for the first time on Thursday, after the memory chipmaker's solid forecast helped extend its AI-driven ascent.
The company's shares were last up 18.4% at $1,236, giving it a market capitalization of $1.398 trillion, compared with Meta's $1.392 trillion. Tesla had a market value stood of $1.4 trillion.
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Micron logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
Micron's fourth-quarter revenue and profit forecasts on Wednesday helped shares reverse a recent slump, with the company disclosing its customers had committed $22 billion to lock in supplies of memory chips.
The chip company topped $1 trillion in market value on May 26, following the entry of South Korea's Samsung Electronics into the club, as memory chipmakers benefit from investor appetite for beneficiaries of Big Tech's mega AI spending plans.
Reporting by Purvi Agarwal in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
US stocks opened higher on Thursday, led by gains in technology shares as strong earnings updates from Micron Technology and Qualcomm reignited optimism around artificial intelligence demand.
The Dow Jones Industrial Average was up 270 points or 0.52%. The S&P 500 and the Nasdaq Composite climbed 0.60%.
Micron surged 19% in trading after reporting fiscal third-quarter results that exceeded analyst expectations.
Qualcomm advanced 9.5% after raising its guidance for non-handset revenue in fiscal 2029.
Other semiconductor stocks also rallied in sympathy, including Sandisk, Western Digital, Lam Research, KLA, and Applied Materials.
European chip stocks also moved higher, with ASMI, Be Semiconductor, and Soitec posting sharp gains.
Micron and Qualcomm highlighted strong demand for AI infrastructure, with customers committing $22 billion to secure Micron’s memory chips, while Qualcomm forecast $15 billion in data center revenue by 2029.
The moves helped extend a tech-driven rally that had recently lost momentum, with investors reassessing valuations in the semiconductor sector.
Market participants also digested the latest inflation and growth data, which broadly met expectations and added to the positive tone.
May’s personal consumption expenditures (PCE) price index showed headline inflation rising 0.4% month-on-month and 4.1% year-on-year, in line with forecasts.
Core PCE rose 0.3% on the month and 3.4% annually, also matching expectations.
Core inflation rose to its highest level since October 2023, but investors took some comfort that the reading was not higher given rising energy prices linked to the Middle East conflict.
A separate reading of first-quarter GDP showed the US economy grew 2.1%, compared with a prior estimate of 1.6%.
Treasury yields moved lower following the data, with the 10-year US Treasury note slipping more than 2 basis points to 4.374%.
The dollar index was little changed after gaining on Wednesday amid rising expectations of Federal Reserve rate hikes.
Thursday’s gains followed a recent pullback in technology stocks driven by concerns over debt-funded AI spending and a potentially more hawkish Federal Reserve.
Micron and Qualcomm have rallied over 200% and 50%, respectively, in the quarter. The Philadelphia Semiconductor Index is on track for its strongest quarter on record, according to LSEG data.
However, broader indices remain mixed in performance.
The Nasdaq is still on track for its biggest monthly decline since March 2025, while semiconductor shares are heading for their worst week since the start of the Middle East conflict earlier this year.
Traders are also watching comments from Federal Reserve officials, including Chair Kevin Warsh, as markets continue to price in the possibility of at least one rate hike by year-end.
Across global markets, Asia-Pacific equities closed mostly higher, led by sharp gains in South Korea and Japan, while European markets also opened in positive territory, supported by strength in chip stocks.
U.S. stocks traded higher this morning, with the Dow Jones index gaining around 250 points on Thursday.
Following the market opening Thursday, the Dow traded up 0.50% to 52,107.28 while the NASDAQ surged 0.70% to 25,654.49. The S&P 500 also rose, gaining, 0.58% to 7,401.17.
Leading and Lagging Sectors
Information technology shares jumped by 1.6% on Thursday.
In trading on Thursday, communication services stocks fell by 1.9%.
Top Headline
Micron Technology Inc. (NASDAQ:MU) posted better-than-expected financial results for the third quarter of fiscal 2026 and issued strong guidance for the current quarter, after the closing bell on Wednesday.
Micron reported third-quarter revenue of $41.46 billion, exceeding analyst estimates of $35.59 billion, according to Benzinga Pro. The semiconductor company posted adjusted earnings of $25.11 per share, beating analyst estimates of $20.63 per share.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded down 1.1% to $69.56 while gold traded up 0.4% at $4,025.40.
Silver traded up 0.1% to $58.170 on Thursday, while copper rose 2.1% to $6.0720.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 gained 0.9%, while Spain’s IBEX 35 Index rose 0.5%. London’s FTSE 100 rose 0.9%, Germany’s DAX jumped 1%, while France’s CAC 40 gained 0.7%.
Asia Pacific Markets
Asian markets closed mostly higher on Thursday, with Japan’s Nikkei 225 jumping 4.61%, Hong Kong’s Hang Seng Index falling 1.43%, China’s Shanghai Composite rising 0.23% and India’s BSE Sensex gaining 0.14%.
Economics
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Cerebras Systems Inc. delivered Q1 outperformance alongside a strong 2026 growth outlook, yet the stock's steep post-earnings selloff reflects rising investor concerns about scalability. This contrasts with Micron, whose fiscal Q3 results instead reinforced its positioning as a leading AI picks-and-shovel play, with supply-led momentum translating into proven monetization and earnings accretion at scale. CBRS's pivot towards an increasing cloud and services mix is expected to drive near-term margin compression and introduce heightened capital intensity, limiting earnings visibility.
Key Takeaways Micron posted Q3 EPS of $25.11 and revenue of $41.46 billion, beating estimates by wide margins.MU benefited from AI-driven demand, with HBM shortages helping boost pricing and margins.MU forecast Q4 revenue of $50 billion and adjusted EPS of $31.00, above consensus estimates. On June 24, Micron Technology Inc. (MU - Free Report) posted blockbuster third-quarter fiscal 2026 earnings results, crushing all estimates. The artificial intelligence (AI) infrastructure trade has shifted from pure-play semiconductors to memory and storage devices.
Micron has been benefiting tremendously from the enormous application of AI in day-to-day life, which has pushed up the demand for memory chips. The four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027.
This has resulted in more AI semiconductor sales implying the need for multiple AI memory chips to operate. Flash memory technologies like DRAM and NAND are used in AI chips, enabling them to perform optimally.
This has pushed up the demand for AI-enabled memory chips. In their last earnings reports, all four major hyperscalers highlighted a shortage of memory and storage chips, resulting in soaring prices of these products. As a result, MU benefits significantly.
The chart below shows the price performance of MU year to date.
Image Source: Zacks Investment Research
Q3 Results Crush All EstimatesQuarterly adjusted earnings per share of $25.11 per share easily surpassed the Zacks Consensus Estimate of $20.98. This marked a year-over-year jump of an astonishing 1,215%. Quarterly, revenues of $41.46 billion, breezed past the Zacks Consensus Estimate of $36.52 billion, reflecting a massive 345.8% rise year over year.
Gross margin climbed to 84.9% in the third quarter from 74.9% in the prior quarter and 39% in the year-ago period. This proved how high-bandwidth memory (HBM) shortage is helping these high-end memory developers to increase prices in a world of AI-powered data center boom. Operating cash flow ballooned up to $25.39 billion, up 113.4% sequentially.
Micron’s CEO Sanjay Mehrotra, said, “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.”
New Tech Trends to Drive MU’s ProspectsThe performance of any AI model depends on memory performance and capacity. MU’s HBM is a highly sought-after product for NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices Inc. (AMD - Free Report) and Alphabet Inc. (GOOGL - Free Report) to name a few, for their AI-enabled chipsets.
Micron has meaningful exposure to AI, cloud data centers, industrial IoT and autonomous vehicles, all of which require increasingly advanced memory solutions. As AI adoption accelerates, demand for DRAM and NAND products continues to rise.
MU has invested heavily in next-generation memory technologies, positioning itself to meet the growing performance and efficiency requirements of AI systems. A particularly important growth driver is HBM, which has become essential for advanced AI workloads. Micron Technology’s HBM3E and HBM4 products are seeing exceptionally strong demand because they offer the speed and efficiency required by modern AI systems.
MU’s position in the AI ecosystem continues to strengthen. NVIDIA identified Micron as a key HBM supplier for its GeForce RTX 50 Blackwell GPUs, reinforcing its importance within the AI supply chain. Demand for HBM4 is also benefiting from next-generation AI infrastructure deployments, including NVIDIA’s Vera Rubin platform.
Strong Guidance Micron anticipates revenues of $50 billion (+/1 billion) in the fiscal fourth quarter of 2026, well above the current Zacks Consensus Estimate of $42.64 billion. MU projects a non-GAAP gross margin of approximately 86%.
Operating expenses on a non-GAAP basis are estimated to be approximately $1.65 billion. Adjusted EPS is anticipated to be $31.00 (+/- $1.00), significantly above the current Zacks Consensus Estimate of $24.91.
Image Source: Zacks Investment Research
Investment ThesisMicron currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Despite a robust rally, the MU stock still looks attractive. It trades at a forward 12-month price-to-earnings multiple of 16.88, which is significantly lower than the industry average of 28.68. This discount adds to the appeal for long-term investors.
Micron Technologies represents an opportunity to invest in a company with substantial unrealized potential in the AI revolution. Astonishing growth potential of the global AI-powered data centers and MU’s strong guidance and business visibility are noteworthy.
SummaryLet me be very clear: I'm not bearish on Micron Technology, Inc.. However, the SCA agreements that provide some comfort in the long term may limit upside in the near term.Once all planned SCAs are signed, about 40% of MU revenue will sit under fixed prices or ceilings, limiting upside if shortages intensify.Gross margin guidance for Q4 shows only modest expansion, signaling a moderation in price increases, although I don't see the peak of the memcycle yet.I’m reiterating my hold because Micron looks safer than before. I think the likes of SK hynix and Samsung Electronics may offer a cleaner shortage trade. Techa Tungateja/iStock via Getty Images
After Micron Technology, Inc. (MU) reported its fiscal third quarter, the sell side moved fast, and most of the target hikes seem to point in the same direction.
RBC’s Srini Pajjuri took his target
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not a registered investment adviser, broker, dealer, or tax professional. This article, including any comments or replies I post, reflects my personal opinions only and is provided for informational and educational purposes. Nothing I write is investment, legal, tax, or financial advice, or a personalized recommendation to buy, sell, hold, or short any security. My views may change without notice. Nothing I write is tailored to any reader’s objectives, financial situation, risk tolerance, or portfolio. Investing involves risk, including possible loss of principal. Readers should conduct their own research and consult a qualified professional before making investment decisions.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryMicron Technology, Inc. delivered strong Q3 results, with revenues and earnings beating consensus by over 15%.MU's top-line surge was driven by higher volumes and significant price increases amid an ongoing memory chip shortage.Despite recent outperformance, I view MU's current valuation as rather high and question the sustainability of elevated profits.MU shares have rallied approximately 15% post-earnings, making the stock less attractive for new investment at present levels.Looking for more investing ideas like this one? Get them exclusively at Cash Flow Club. Learn More »Sitewide Sale 2026: Get 20% Off JHVEPhoto/iStock Editorial via Getty Images
Article Thesis Micron Technology, Inc. (MU) reported its most recent earnings results on Wednesday afternoon, showing very strong business and earnings growth compared to one year earlier. Due to the ongoing memory chip shortage that
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Micron Technology MU briefly moved ahead of Meta Platforms (META) and Tesla (TSLA) in market capitalization on Thursday, after a strong outlook from the memory chipmaker extended its rally driven by artificial intelligence demand.
Micron’s shares had surged 18.4% at $1,236, giving the company a market value of $1.398 trillion.
This compared with Meta’s $1.392 trillion, while Tesla stood at about $1.4 trillion.
The stock is currently trading up by 10.13% and has a market capitalization of $1.3 trillion.
The move comes after Micron’s fourth-quarter revenue and profit forecasts helped reverse a recent slump.
The company also said customers had committed $22 billion to secure memory chip supply.
Micron first crossed the $1 trillion valuation mark on May 26, joining other major semiconductor names benefiting from strong investor interest in companies tied to Big Tech’s AI infrastructure spending.
Micron reported that revenue in the second quarter quadrupled, supported by what it described as a demand-driven chip shortage expected to extend beyond 2027. This marks a shift from earlier expectations that the shortage would end in the near term.
The company now has 16 long-term chip supply agreements in place.
Adjusted earnings came in at $25.11 per share on revenue of $41.5 billion, representing a 346% increase from a year earlier. Adjusted gross margin stood at 85%, while adjusted operating margin reached 81%.
Growth was led by Micron’s two data-center segments, which together expanded 415% year-on-year to $25 billion.
These segments now account for 61% of total sales.
The company also reported $18 billion in free cash flow for the quarter and said cash, equivalents, and short-term investments rose to $26 billion at the end of May, up from $14 billion three months earlier.
Following the results, analysts pointed to a structural shift in Micron’s business profile.
D A Davidson analyst Gil Luria said, “We posit that Micron has entered an era where it has some of the semi industry's best visibility, a far cry from its historical role in the semi market,” raising his price target to $2,000 from $1,500 in a note titled “New Era in Memory.”
KeyBanc also lifted its target sharply to $1,600 from $600, with analyst John Vinh stating, “We believe Micron deserves to be further rerated.”
Wedbush analysts described the results as a “much needed drop the mic quarter to alleviate memory concerns.”
“We are seeing no cracks in AI demand on the chips/ hardware or software front which gives us a bright green light to own the core tech winners into year-end,” they added.
However, Futurum chief market strategist Shay Boloor cautioned on valuation interpretation, saying, “This print is a major validation of the memory supercycle thesis but I wouldn't value Micron by simply annualizing peak margins forever,” adding that normalized earnings power has likely moved higher but cyclicality has not disappeared.
Shares in the four most prominent memory chip makers are once again surging this morning. But the reason for this specific surge comes down to just one of the four companies: Micron Technology Inc. (Nasdaq: MU).
Micron reported third-quarter revenue of $41.46 billion, exceeding analyst estimates of $35.59 billion, according to Benzinga Pro. The semiconductor company posted adjusted earnings of $25.11 per share, beating analyst estimates of $20.63 per share.
"Micron is investing at record levels in technology, products and supply to address our customers’ rapidly growing demand. We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron’s strong financial performance," said Sanjay Mehrotra, chairman, president and CEO of Micron.
Micron expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, versus estimates of $42.95 billion. The company anticipates fourth-quarter adjusted earnings of $31 per share, plus or minus $1, versus estimates of $25.50 per share.
Micron shares jumped 11.5% to trade at $1,167.88 on Thursday.
These analysts made changes to their price targets on Micron following earnings announcement.
Considering buying MU stock? Here’s what analysts think:
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Li-S Energy Ltd (ASX:LIS, OTC:LISXF, FRA:9GQ) has shipped its first commercial order of Australian-produced lithium metal foil and secured ISO 9001:2015 certification for its lithium foil production line in Geelong, Victoria.
The order, supplied to a leading Australian battery research institution, marks the company’s first external commercial validation of its locally produced lithium foil and opens a potential new revenue stream in battery materials.
The ISO certification, awarded by independent certifier TQCS International, confirmed its production processes met international standards for consistency, quality and traceability.
Li-S Energy’s ISO 9001:2015 certificate.
First commercial lithium foil shipment The company has completed the first sale of its lithium metal foil on commercial terms, with the product shipped to an Australian research institution that operates one of the country’s largest battery research and development programs.
Although the initial order is moderate in scale, Li-S Energy said it represented the beginning of commercial customer engagement for the product.
Managing director Dr Lee Finniear said the shipment confirmed demand for an Australian-made alternative to imported lithium foil.
“Shipping our first commercial order is an important step,” Finniear said.
“It confirms there is genuine demand for an Australian-made alternative to imported foil and, in addition to manufacturing foil for our own LIS battery cells, it opens the pathway to develop our commercial foil sales channels going forward.”
ISO certification supports commercial supply The ISO 9001:2015 certification applies to the manufacture of lithium foil for batteries at Li-S Energy’s Geelong facility.
The certification will support supply opportunities in domestic and international markets, including defence, aerospace, battery manufacturing, lithium and solid-state battery development, and research institutions.
Finniear said the certification provided an important assurance for prospective customers.
“The certification gives defence, aerospace and battery manufacturing customers the independent quality assurance they require before qualifying LIS as a new supplier.”
Geelong facility builds local capability Li-S Energy established what it describes as Australia’s first and only dedicated lithium foil production line at its Geelong facility.
The line, delivered ahead of schedule, was supported by a $1.76 million matched grant under the Federal Government’s Industry Growth Program.
It produces high-purity lithium metal foil, giving Li-S Energy an in-house supply capability for its own lithium-sulfur battery cells while reducing reliance on imported foil.
About Li-S Energy Li-S Energy is an Australian battery technology company developing ultra-lightweight lithium-sulfur cells designed to offer more than 2 times the energy density of conventional lithium-ion batteries.
The company uses intellectual property and nanomaterials, including boron nitride nanotubes and Li-Nanomesh™, to improve battery performance, safety and longevity.
Its technology is targeted at applications where weight is a critical factor, including aviation, drones, defence and other advanced energy storage uses.
SummaryMicron Technology, Inc. delivered an extraordinary quarter, with 74% QoQ and 346% YoY revenue growth, signaling robust AI-driven demand and market leadership.MU's multi-year Strategic Customer Agreements now cover 20% of DRAM and 33% of NAND output, securing $22B+ in cash commitments and reducing cyclicality risk.Despite rising manufacturing costs and an upcoming CapEx drag, MU trades at a 30–50% forward discount to peers, supporting a bullish long-term thesis.I remain cautious on MU's short-term volatility, especially with SK Hynix's U.S. listing, but see pullbacks as opportunities to build positions in MU. JHVEPhoto/iStock Editorial via Getty Images
Introduction Micron Technology, Inc. (MU) has absolutely crushed this quarter, which, on the one hand, was expected after its direct competitor in memory, Samsung (SSNLF), surprised not only the market a
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
International Graphite Ltd (ASX:IG6, OTC:IGRPF) has signed a Heads of Terms agreement with Wogen Pacific Ltd to support product sales, marketing and graphite concentrate supply for its Collie Micronising Facility in Western Australia.
The agreement is designed to help International Graphite establish sales channels into the Asia-Pacific market while supporting feedstock supply for future production growth at Collie.
Wogen Pacific, a Hong Kong-based subsidiary of Wogen Ltd, will buy a minimum of 3,000 tonnes per annum of micronised graphite from the facility from the point of commercial production, for exclusive distribution to customers in the Asia-Pacific region.
Agreement highlights The company has also committed to sourcing up to 10,000 tonnes per annum of flake graphite concentrate feedstock to supply the Collie facility as production increases over time.
Terms of sale will be agreed on a spot basis, with International Graphite also gaining access to Wogen’s supply chain finance solutions to support operations and capital efficiency.
The Heads of Terms is non-binding and is intended to be replaced by binding agreements as the facility approaches commercial production.
Agreement targets Asia-Pacific graphite markets International Graphite managing director and CEO Andrew Worland said Wogen’s global sourcing, trading, logistics and marketing capabilities would support the company’s Collie operations as it moved toward production.
“Wogen has deep experience in the global graphite supply chain with an outstanding reputation and a strong presence across all major markets,” Worland said.
“This is an important step in our strategy to partner with market leaders, and we look forward to growing our relationship with Wogen as we move into production.”
Wogen Ltd CEO John Craig said the agreement would help bring a new supply of high-spec industrial graphite products to Asia-Pacific customers, particularly in Japan and South Korea.
The initial sales term is three years from first commercial-scale production, while the supply term is three years from first shipment. Immediate pre-production marketing will begin, with binding agreements to be finalised before commercial-scale production starts.
Collie facility central to processing strategy The Collie Micronising Facility is part of International Graphite’s plan to develop mid-stream graphite processing capacity in trusted jurisdictions.
Under the proposed arrangement, the facility would produce micronised graphite across varied size fractions and purity levels, with Wogen providing market access and feedstock support.
The agreement also provides for market spot pricing or otherwise agreed pricing, access to supply chain finance and bilateral termination provisions in the event of a material breach. The agreement is governed by Singapore law.
Wogen Pacific is a specialist trading company handling a range of specialty metals and minerals, including ores and concentrates, metals and oxides, ferro alloys, mineral sands and rare earths. The Wogen Group has operated for more than 50 years and services customers globally, with particular strengths in Asia and Europe.
About International Graphite At is currently raising $4 million, International Graphite is establishing mid-stream graphite processing operations in Australia and Europe to supply high-spec industrial graphite products to established markets seeking secure and reliable alternatives to traditional supply chains.
The company is developing a graphite processing platform through the Collie Processing Facility in Western Australia and the Alkeemia/IG6 Joint Venture at Porto Marghera in Italy.
The platform is designed to serve demand from industrial, energy storage, advanced manufacturing and defence applications.
International Graphite also owns the Springdale Graphite Project in Western Australia, which provides long-term feedstock optionality for future expansion of its processing operations.
Raspberry Pi Holdings PLC (LSE:RPI) topped the FTSE 350 leaderboard on Thursday morning, climbing over 10% after US memory chipmaker Micron Technology delivered strong results and guidance that fuelled a broad rally in semiconductor stocks around the world.
Despite the absence of any company-specific news, shares in the UK maker of single-board computers rose 10.5% to 808p, while across Europe, semiconductor stocks advanced, with ASM International, Infineon Technologies (XETRA:IFX, OTC:INFNNY), BE Semiconductor Industries, ASML, STMicroelectronics (NYSE:STM) and VAT Group all among the leading gainers.
The move followed stronger-than-expected quarterly results from Micron overnight, sending its shares surging almost 17% in afterhours trading.
Investors appeared to be buying into the wider AI theme, as Raspberry Pi's only corporate relationship with Micron is that the US company supplies memory chips used in some products.
Micron beat Wall Street forecasts and issued guidance ahead of expectations. Chief executive Sanjay Mehrotra said the results reflected "the strategic value of memory in the AI era" and pointed to continued strong demand from customers.
Russ Mould, investment director at AJ Bell, said: "Fears about a pullback in AI-related stocks have been banished after Micron Technology's results implied all is well in tech land."
He added: "The company has reported a surge in profit and said supply tightness in the memory chip market will continue beyond next year."
Mould said the results had boosted sentiment across the wider semiconductor sector.
Micron has Wall Street tech bulls back in charge. Oil and bonds are helping too. (Erik McGregor/LightRocket via Getty Images)
Investors in U.S. stocks were looking at a triple-dose of optimism Thursday, with a key inflation reading in focus, that could bring markets back from a mid-June slump and close out an extraordinary quarter on a high note.
Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has completed a major front-end engineering design (FEED) milestone for its proprietary YP-Provaris low-pressure liquefied carbon dioxide (LCO₂) tank, advancing the technology through DNV’s approval process for maritime applications.
The company has submitted a detailed engineering package to DNV to support the General Approval for Ship Application (GASA) review, with the design review targeted for completion in August 2026.
The milestone is intended to de-risk Provaris’ strategy to commercialise its cargo containment solution for the emerging maritime CO₂ transport and storage market, where carbon capture and storage (CCS) infrastructure is expected to play a growing role.
The company has completed a $1 million placement to support key 2026 technical milestones across its compressed hydrogen and liquid CO₂ storage and transport development programs.
Illustration of Yinson’s large scale CCS Supply Chain infrastructure suitable for <10 Mtpa of LCO2, including FSIU, carriers and terminal storage.
Detailed engineering package submitted to DNV The YP-Provaris LCO₂ tank has been engineered as a Type C-equivalent maritime tank, targeting safety and performance outcomes aligned with the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code).
With a design capacity of 25,000 cubic metres, the tank is intended to address limitations in alternative Type C tanks, which Provaris says are typically up to 7,000 cubic metres in capacity.
Provaris chief technical officer Per Roed said completion of the FEED engineering package was an important technical milestone for the company and reflected extensive structural design work undertaken by Provaris and Yinson.
He said the engineering package went beyond the normal scope of an Approval in Principle and was designed to give shipowners, shipyards and CCS project participants greater confidence in the maturity, safety basis and practical application of the company’s low-pressure LCO₂ containment solution.
DNV has worked with Provaris through the 2025-26 design and engineering phases to ensure the detailed structural design addresses IGC Code requirements with equivalent levels of safety and performance.
Final testing stage underway The final stage of FEED includes a test program for selected materials and welding procedure specifications.
Testing of fabricated elements is expected to validate strength and fatigue calculations in the structural model, with completion planned during August 2026. Results will be incorporated into DNV’s continuing review process.
Provaris will also produce sample sections of the tank design to demonstrate that proprietary design elements can be fabricated using robotic mounting and laser welding at its robotic facility in Fiskå, Norway.
Tank positioned for CCS supply chain applications The YP-Provaris LCO₂ tank is designed to provide a scalable marine containment solution for transporting liquefied carbon dioxide as part of emerging CCS supply chains.
The design applies a proprietary sandwich construction approach and is intended for shipboard installation without a secondary barrier, while targeting equivalent safety outcomes to conventional Type C containment systems under the IGC Code.
Provaris said large-scale CO₂ storage solutions had the potential to improve transport and storage efficiency and reduce cost per tonne compared with existing market offerings.
The tank has also been selected by Yinson Production for CCS supply chain development, extending potential commercial applications across floating storage and injection units (FSIUs), LCO₂ carriers and terminal storage.
Scheduled development activities for 2026 include completion of the testing program, further progress through the GASA approval process, integration into Yinson’s FSIU FEED activities and development of a proposed joint venture company between Yinson and Provaris.
About Provaris Energy Provaris Energy is developing compressed hydrogen and carbon dioxide storage and transport solutions through proprietary tank designs for maritime gas carriers and integrated supply chain development.
The company is focused on storage and transport technologies designed to support regional supply chains and the broader global energy transition.
SummaryMicron delivered explosive Q3 results, with revenue up 345.7% YoY and non-GAAP EPS up 1,215%, far exceeding guidance and consensus.AI-driven memory demand, persistent supply constraints, and strategic customer agreements underpin a bullish outlook and mitigate cyclical risks for MU.Operating leverage, robust free cash flow, and sector-leading margins position MU for continued strong performance, with valuation still attractive at 16.6x FY2026 EPS.I reiterate a Buy rating, supported by quant ranking, upward EPS revisions, and strong chart momentum, as MU transforms its business model. JHVEPhoto/iStock Editorial via Getty Images
Bears sound smart, but it's usually bulls that make money, and that's what's happening now. Micron (MU) crushed earnings and guidance once again, but this time, the stock is rising.
Non-GAAP EPS came in
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNDK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I have exposure to MU stock through the DRAM ETF.
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Key Takeaways Micron framed memory as a strategic AI bottleneck as SCAs reshape revenues and capital plans.Micron has signed 16 SCAs, backed by more than $22B in commitments, including nearly $18B in deposits.Micron expects Q4 revenues of $50B, plus or minus $1B, and non-GAAP EPS of $31, plus or minus $1. Micron Technology, Inc. (MU - Free Report) used its third-quarter fiscal 2026 earnings call to make a broader point than a quarterly beat. Management framed memory as a strategic bottleneck in the AI buildout and argued that long-term customer agreements are reshaping the company’s revenue durability and capital plans.
That message landed alongside record results and a stronger fiscal fourth-quarter outlook, but the call’s real focus was supply discipline, multi-year demand visibility and how Micron plans to lock in that position.
MU Pushes SCAs Deeper Into Its ModelChairman, president and CEO Sanjay Mehrotra said that Micron’s multi-year strategic customer agreements (SCAs) should improve the durability and predictability of financial performance. The company tied that shift directly to accelerating AI demand and customers’ need for secure supply.
Chief business officer Sumit Sadana expanded on that theme in Q&A, stating Micron has already signed 16 agreements, backed by more than $22 billion in cash and related financial commitments, including nearly $18 billion in cash deposits. Sadana said that the company expects these arrangements to expand until they represent roughly half of revenues, or somewhat more.
Sadana also described the contracts as take-or-pay agreements, generally spanning five years, with annual volume commitments and negotiated quarterly pricing within floor and ceiling bands. That structure stood out as one of the clearest strategic changes discussed on the call.
Micron Sees Tight Supply Beyond 2027A central message from management was that demand is no longer the limiting factor. Sadana said that shipment growth is being capped by supply, not end demand, and Micron does not yet see when industry supply will catch up.
For HBM, Sadana said that customer demand for 2027 and even 2028 remains far above Micron’s ability to supply across HBM3E, HBM4 and future products. He added that non-HBM DRAM is also in the same category, underscoring how broad the constraint has become.
Chief financial officer Mark Murphy sharpened that outlook by saying market tightness should continue beyond 2027. Murphy also said that Micron expects the HBM total addressable market to cross $100 billion in fiscal 2027, earlier than its prior view of 2028.
MU Sets a Higher Bar for Q4The quarter itself provided the backdrop for that confidence. Micron reported non-GAAP EPS of $25.11, beating the Zacks Consensus Estimate of $21.39 by 17.40%. The company reported revenues of $41.46 billion, which outpaced the consensus mark of $36.72 billion by 12.90%.
In the year-ago quarter, the company reported revenues of $9.30 billion and non-GAAP EPS of $1.91. The operating cash flow was $25.39 billion, whereas the adjusted free cash flow was $18.30 billion.
Management expects fiscal fourth-quarter revenues of $50 billion, plus or minus $1 billion, and non-GAAP EPS of $31.00, plus or minus $1, with the gross margin around 86%. This outlook helped reinforce management’s case that current demand strength is carrying into the next quarter.
Micron Plans Heavier Spending & More ReturnsMurphy said that Micron is generating record cash flow and expects that growth to continue in the fiscal fourth quarter. He said that the company paid down significant debt, will keep enough cash to invest through cycles and intends to return excess cash primarily through share repurchases.
Murphy also said that Micron plans to increase capital return beginning Dec. 9, the second anniversary of its CHIPS agreement signature, while continuing to grow the dividend over time. That was a notable signal that management sees the current cash generation profile as durable enough to support a more assertive shareholder return plan.
At the same time, Micron is spending more aggressively to expand supply. The company raised its fiscal 2026 capital expenditure to around $27 billion, and Murphy said that fiscal 2027 spending will increase substantially, with more than half of that increase tied to construction.
MU Uses Q&A to Detail Contract TermsThe analyst Q&A gave investors more clarity on how Micron intends to enforce its new model. In response to a Barclays question, Sadana said that customers cannot cancel the SCAs and remain obligated to pay for committed volume at agreed pricing terms.
Sadana also added that deposits are not prepaid revenues and are returned over time, with repayments weighted toward the second half of the agreement term. Micron retains remedies if customers fail to meet commitments, including the ability to reduce those cash balances.
That exchange was important because it showed management leaning into the enforceability of the agreements rather than describing them as softer framework deals. The tone was direct and left little ambiguity about the company’s intent.
Micron Leans on Product BreadthManagement also used the call to argue that Micron’s opportunity extends beyond HBM. The press release highlighted high-volume HBM4 shipments for a lead customer, qualification samples for multiple end customers, and continued progress in SOCAMM, Gen6 SSDs and high-capacity QLC storage.
Sadana said that Micron wants HBM share over time to be consistent with its broader DRAM share, while still supporting non-HBM DRAM and NAND across end markets. He pointed to the diversity of the Automotive and Embedded Business Unit and the Mobile and Client Business Unit as a meaningful source of balance.
In another Q&A exchange, management said that enterprise SSD momentum remains strong, with data center SSD revenues reaching $5 billion within the quarter’s $25-billion data center total. The company presented that breadth as a competitive advantage in customer negotiations.
MU Leaves the Call With an Assertive ToneThe broader tone of the call was confident and unusually explicit. Executives repeatedly described demand as far above supply, not just in HBM but across DRAM and NAND, while presenting Micron’s contract model as a structural change in how memory will be sold.
Management also acknowledged the cost side of that posture. Executives said that HBM trade ratios and greenfield fab ramps would push DRAM bit costs higher in the near term, with startup costs becoming more meaningful in fiscal 2027, but they argued that the value of incremental supply outweighs those pressures.
Zacks Signals on MUMU presently sports a Zacks Rank #1 (Strong Buy), along with a Growth Score of A, a Momentum Score of A, a Value Score of F and a VGM Score of C. Under the Zacks framework, the Rank is the primary signal, while stronger Growth and Momentum scores can be supportive for near-term performance, especially when paired with a top Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
The weaker Value Score and middle-of-the-road VGM Score suggest that the profile is not uniformly strong across styles. Zacks also notes that the Rank can change as earnings estimate revisions move after results, so the current signal should be viewed as responsive to future estimate activity rather than fixed after this quarter.
Listen below or on the go via Apple Podcasts and Spotify
Micron (MU) and SK Hynix put the spotlight on DRAM. (00:13) Anthropic thinks Alibaba (BABA) took notes. (01:19) The White House wants $87.6B. (02:21)
This is an abridged transcript.
The Roundhill Memory ETF (DRAM) is back in focus after Micron Technology (MU) reported better-than-expected quarterly results and SK Hynix (SKHY) unveiled plans for a U.S. ADR listing.
The ETF is up 12.6% in premarket action. DRAM has gained 151.9% since its debut on April 2, 2026.
Micron (MU), one of DRAM's largest holdings, is up 17% premarket after reporting quarterly results on Wednesday.
Micron Technology (MU) reported fiscal third-quarter results and guidance that topped Wall Street's expectations by a wide margin.
Meanwhile, SK Hynix (SKHY), another top holding in the fund, announced plans on Wednesday to raise as much as $29.4B through a U.S. ADR listing. The company said it intends to use the proceeds to expand production capacity as demand for AI memory chips continues to accelerate.
Samsung Electronics (SSNLF), SK Hynix (SKHY) and Micron (MU) together account for roughly three-quarters of DRAM's portfolio.
Alibaba Group Holding (BABA) shares slid to a 16-month low in Hong Kong on Thursday after Anthropic (ANTHRO) reportedly accused the company of “illicitly” accessing its artificial intelligence model.
The company’s stock tumbled as much as 4.9%, extending this year’s decline to 33%. The firm's U.S.-listed shares ended 3% lower on Wednesday. Other Chinese firms that develop large language models also fell, with Xiaomi (XIACF) and Baidu (BIDU) both dropping more than 3%.
According to Bloomberg, Anthropic (ANTHRO) sent a letter to White House officials and several U.S. senators this week alleging that Alibaba (BABA) was waging an industrial-sized effort to illicitly access its Claude models.
The strike by Alibaba is described as a "distillation" effort, which Anthropic has said involves training a less capable model on the outputs of a stronger one. It said the campaign was conducted by operators affiliated with Alibaba and Alibaba Qwen, Alibaba's AI lab.
The White House on Wednesday asked Congress to approve $87.6B in supplemental spending to fund the Iran war and other priorities, including aid for U.S. farmers and response to the Ebola outbreak.
The package includes $21B for the Defense Department to support military capabilities, munitions procurement, and the U.S. industrial base; $1.4B for Ebola response efforts; and $768M for the Energy Department's nuclear and energy security programs.
The funding request could place some Republicans in a politically difficult position ahead of the 2026 midterm elections.
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The biggest movers for the day premarket: The Wendy's Company (WEN) +15.4% - Stock posted further gains on Thursday, holding onto a significant portion of its heavy-volume surge from the previous session after Reddit’s WallStreetBets community triggered an intraday rally.
Cyprium Metals Ltd (ASX:CYM, OTCQB:CYPMF) has advanced the Phase 1 Cathode Restart at its Nifty Copper Complex in Western Australia, with work shifting from construction and refurbishment toward practical completion, commissioning and operational readiness.
The company said the June quarter to date had been a period of intensive execution across acid storage, ponds, heap leach, solvent extraction, electrowinning, solution handling, filtration, firewater and electrical systems at Nifty.
A key milestone was the commissioning of a new acid storage and distribution terminal, allowing sulphuric acid deliveries to restart in late May - the first acid delivered to site since the SXEW plant closed in 2006.
Restart program gains momentum Cyprium said the Phase 1 Copper Cathode Restart had “materially advanced”, with several work packages now moving toward completion.
Executive chair Matt Fifield said the receipt of sulphuric acid on site was a tangible marker of progress in the project timetable.
“We are transitioning from building to completing, with commissioning to follow,” Fifield said.
He said site activity had remained high across every major work package, while technical and commercial work to support the company’s growth plans had also progressed.
Acid supply chain re-established The new acid terminal was completed and commissioned during the quarter after regulatory sign-off.
Cyprium has arrangements to procure acid through one of Australia’s largest sulphuric acid handlers, with material delivered by sea to the supplier’s Port Hedland terminal before being transported to Nifty by specialised tanker truck.
The Port Hedland terminal currently holds up to five months of Cyprium’s forecast acid requirements.
Cyprium said the restart of acid supply demonstrated the readiness of the storage and logistics chain to support near-term leaching operations.
First acid delivery.
Heap leach and solution systems progress Preparation for the initial surface leach program has continued, including the turnover of surface materials on select heaps, installation of on-flow piping and dripper hose, and testing and pressurisation of solution systems.
The company expects turnover pads to be flushed with water and then commissioned with acid in the coming weeks, subject to regulatory sign-off on heap leach ponds and drainage work.
Cyprium has also started a direct injection leaching trial, testing whether solution can be applied through shallow wells into the heaps to increase the volume of material under leach. Initial indications from water flushing were described as promising, with the trial ongoing.
Pond and solution infrastructure has also advanced, including work on intermediate leach solution and pregnant leach solution systems, raffinate pond readiness, field devices, control circuits and stormwater systems.
SXEW plant moves toward commissioning At the solvent extraction plant, Cyprium said all structural repairs and acid-proofing had been completed and received regulatory sign-off.
Work is now focused increasingly on commissioning preparation, with tanks cleaned and inspected, bunds and sumps hydrotested, pipework reinstated and redundant pipework and cabling removed.
The electrowinning area also recorded progress, with concrete repairs, acid-proofing, HDPE lining repairs, hydrotesting, compressor installation, EW cell installation, busbar upgrades, transformer delivery, overhead crane installation and stripping machine refurbishment.
Anodes and cathodes required to plate copper in the electrowinning plant have started arriving on site.
Electrical and instrumentation work continued across the quarter, including cable removal, installation, testing and termination across the motor control centre and field areas.
Operational readiness advances Cyprium said the quarter marked a clear shift toward pre-commissioning and commissioning preparation.
Operational readiness activities included preparation of manuals and procedures, training system upgrades, laboratory fitout, mine rescue and safety equipment acquisition, initial deliveries of first-fill material, warehouse stocktake and ERP protocols.
The company said these milestones were aimed at reducing risk and shortening the timeline to first cathode production.
What's ahead Cyprium expects to provide further updates on its broader growth program during the September quarter.
The company is working on plans and capital estimates to expand SXEW cathode production capacity from the Phase 1 target of around 6,000 tonnes per annum to about 20,000 tonnes per annum.
It is also evaluating shallow oxide material in the Nifty open pit, including additional drilling and mine planning, with updated Mineral Resource and Ore Reserve estimates expected for the Nifty Copper Complex in the second half of CY2026.
Cyprium is also refining plans for open-pit sulphide mining and refurbishment of the existing Nifty concentrator, while exploration updates are expected separately.
Artificial intelligence has created a handful of corporate winners, but one company has towered above the rest. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) became the face of the AI revolution as demand for its chips exploded, pushing its market value to roughly $4.8 trillion. Even after a pullback of nearly 16% from its all-time high, most investors still view Nvidia as one of the strongest long-term ways to invest in AI.
That narrative has become so dominant that many investors may be overlooking another AI beneficiary posting numbers that look even stronger than Nvidia’s did at a similar point in its growth cycle: Micron Technology (NASDAQ:MU).
Micron’s Latest Earnings Were Hard to Ignore Micron reported fiscal Q3 2026 earnings yesterday showing the memory-chip maker delivered stunning results that cleared Wall Street’s expectations by a wide margin.
Metric Reported Analyst Estimate Revenue $41.5 billion $35.1 billion EPS $25.11 $20.39 The market’s reaction reflected just how far ahead of expectations Micron landed. Shares are surging 18% in pre-market trading this morning.
The key takeaway wasn’t simply that Micron beat estimates. It was the scale of the business it has become. Revenue reached $41.5 billion in a single quarter as demand for high-bandwidth memory (HBM) and DRAM continued to benefit from AI infrastructure spending.
By themselves, though, the numbers don’t quite catch the sweep of the achievement. Let’s give them some perspective.
Micron Is Already Matching Nvidia’s Scale One year ago, Nvidia reported what many investors viewed as one of its most remarkable earnings reports. In its fiscal 2026 first-quarter earnings release, the company generated:
Revenue of $44.1 billion Net income of $18.8 billion Those figures represented revenue growth of 69% and profit growth of 26% year over year. The market rewarded Nvidia handsomely for those results. Its stock soared 34% in the three months between its Q1 and Q2 earnings reports, and it added $1.13 trillion in market valuation.
Surprisingly, Micron’s latest quarter stacks up even better on several measures. While its revenue of $41.5 billion was only modestly below Nvidia’s $44.1 billion from a year ago, Micron generated approximately $28.2 billion in profits. In other words, Micron is already producing substantially more profit than Nvidia was at this stage.
That comparison alone deserves investors’ attention. Yet the guidance may be even more compelling.
The Valuation Gap Is Hard to Ignore Micron’s management expects fiscal Q4 revenue of roughly $50 billion and net income of approximately $35 billion. Compare that with Nvidia’s next quarter from last year:
Company Snapshot Revenue Net Income Nvidia (one year ago) $46.7 billion $25.8 billion Micron (Q4 guidance) $50.0 billion $35.0 billion Micron is forecasting higher revenue and more profit than Nvidia generated during the period that helped cement its reputation as the premier AI stock. Yet the valuation difference remains enormous.
Nvidia market cap one year ago: approximately $3.8 trillion Micron market cap today: approximately $1.18 trillion That means Micron is generating comparable — and in some cases superior — operating results on an absolute and percentage basis while carrying a valuation just one-third the size.
Granted, the comparison is not perfectly apples-to-apples. The AI market of 2025 and the AI market of 2026 are not identical. Today’s industry faces challenges including land constraints for data centers, water availability concerns, power bottlenecks, component shortages, and investor scrutiny over whether massive AI spending will generate adequate returns.
If Nvidia’s exact circumstances from a year ago were transplanted into today’s environment, the outcome might not be identical.
Key Takeaway Regardless, Micron’s latest earnings report highlights a disconnect investors should not ignore. Micron is approaching Nvidia-like scale while generating profits that exceed what Nvidia reported at a similar point in its AI growth story. Its Q4 outlook suggests that momentum is still accelerating.
That doesn’t guarantee Micron follows Nvidia’s stock trajectory. Markets rarely repeat themselves perfectly. Regardless, the numbers suggest Micron may be one of the most undervalued AI infrastructure companies available today.
When a company growing this quickly trades at roughly one-third the valuation Nvidia commanded during a comparable phase of the AI boom, sharp investors should at least take a closer look. The opportunity may not be identical to Nvidia’s, but the upside still appears far larger than many investors realize.
Noble Helium Ltd (ASX:NHE, OTC:NBHEF) has refined its upcoming Kinambo helium drilling campaign in Tanzania after 3D seismic reprocessing and gravity anomaly analysis identified 2 optimised firm well locations and reduced operational risk.
The work has prompted a modification to the first well location at Kinambo, on the western flank of the company’s 100%-owned North Rukwa Project, with rig mobilisation now expected in July 2026 and the Kinambo-1 well scheduled to spud in August 2026.
Seismic work improves targeting The reprocessing of the Kinambo 3D seismic volume has improved imaging of deeper sections, particularly around the Nsungwe and Galula formations, which are key targets in the campaign.
Executive chairman Dennis Donald said the work, carried out by specialists in structurally complex environments, had “significantly improved” previously unrefined imaging of deeper sections.
“The enhanced deeper fault imaging has allowed the company to optimise final well locations and significantly reduce operational risk factors when drilling,” Donald said.
“We adjusted the location of the first well based on the new data, which better defined the target and structure. Site preparation for the new well location is underway and we now expect to mobilise the rig in July and spud the Kinambo-1 well in August.”
Cross-section of the Kinambo structure as partially imaged on 3D seismic, with the gravity gradiometry reduction in a crestal location modelled as plausibly explained by gas within the structure.
Two-well program adjusted Kinambo could not be fully tested with a single vertical well because the crest of the structure migrates to the northeast with increasing depth.
However, Kinambo-1 will be drilled to target the crest of shallower levels to a total depth of 850 metres. The well will also allow the drilling team to gain familiarity with the operational requirements of the Schramm T130 XD drill rig.
Kinambo-2 is planned around 400 metres to the northeast and will appraise any gas intersections identified in Kinambo-1 before targeting deeper levels to total depth in the Galula Formation at about 1,750 metres.
The Galula Formation lies directly on basement at Kinambo and is expected to be in direct receipt of deep helium-enriched fluids and gases from basement and Karoo source rocks.
Deeper targets in focus The company said the deeper and older Nsungwe/Galula formations are a known regional seal and reservoir pair in the basin. Noble’s updated charge model for North Rukwa, together with previous proprietary charge modelling by Oxford University, indicates gas-phase helium potential at these levels, making them a primary focus of the campaign.
The latest interpretation suggests the Galula structure appears partly decoupled from the Nsungwe and rises toward a possible structural high north of the 3D seismic volume. Noble said that if Galula yields highly helium-enriched fluids, there may be potential for a separate deep gas pool along strike.
The company also said previously identified gas indicators on seismic, including flat spots and class II AVO responses, now coincide with a gravity gradiometry anomaly at Kinambo.
Gravity inversion constrained by seismic suggests gas reservoirs at multiple depths are the most plausible cause of the Gzz “hole” in the crest of the structure.
Helium and nitrogen anticipated Noble expects helium and nitrogen to be the key gases at depth, increasing its interest in drilling to the Nsungwe and Galula formations.
Carbon dioxide potential increases in shallower horizons. While CO2 could dilute helium content, Noble noted it is a proven gas-forming mechanism in several commercial helium projects globally and that an established commercial CO2 market exists in Tanzania and East Africa.
What's ahead Noble is preparing the revised Kinambo-1 site ahead of expected rig mobilisation in July 2026.
The first well is due to spud in August 2026, targeting shallow crestal levels, while Kinambo-2 is designed to follow up any gas intersections and test deeper parts of the structure.
Results from the 2-well program will be used to assess helium potential across multiple depths at Kinambo and guide the company’s next exploration steps at North Rukwa.
US stocks look set for a strong rebound on Thursday, with technology shares leading the charge after upbeat results from Micron reignited enthusiasm for the artificial intelligence trade following three consecutive days of losses for the Nasdaq.
Nasdaq futures jumped 2.2%, pointing to a recovery after the technology-heavy index fell 0.4% on Wednesday, taking its decline for the week to more than 1,000 points, or 3.7%.
S&P 500 futures were up 0.8%, with Dow Jones futures 0.3% higher, having respectively dropped 0.1% to 7,358.2 and 0.35% to 51,848.9 the day before.
The mood shifted after Micron's fiscal third quarter results comfortably beat Wall Street expectations and the memory chipmaker issued stronger-than-expected guidance for the current quarter.
Revenue more than doubled from a year earlier, while chief executive Sanjay Mehrotra said the results reflected "the strategic value of memory in the AI era" as demand continued to accelerate.
The shares have leapt 17.5% in pre-market trading.
Market analyst David Morrison at Trade Nation said the results "restored confidence across a sector which has taken a recent hit", noting that the company is the only US manufacturer of high-bandwidth memory chips compatible with Nvidia's processors.
Qualcomm also boosted sentiment after buying a chip startup Modular for nearly $4 billion and issuing an upbeat forecast for its data centre business, helping lift semiconductor stocks including AMD, Marvell Technology, TSMC and Intel.
The optimism spread into Asian and European markets. Japan's Nikkei 225 surged 4.6%, South Korea's Kospi jumped 5.4% and the Euro Stoxx 600 technology index gained 0.7%.
Investors will also be watching US inflation data later, with the Personal Consumption Expenditures price index expected to show annual inflation of 3.4%. Morrison said the release would be closely watched as markets assess the Federal Reserve's increasingly hawkish stance.
Attention will also remain on the Japanese yen after the dollar climbed to within a few cents of ¥162, its strongest level against the currency since July 2024.
Traders were "still playing a game of chicken" with Japanese policymakers, Morrison said, after previous currency interventions failed to halt the yen's decline, although he cautioned the dollar could see a short-term pullback after its recent rally.
Oil prices continued to fall, with WTI crude sliding another 0.8% to $69.77, the lowest since the start of March.
With the closing bell on June 24 and the quarterly filing that came with it, Micron (NASDAQ: MU) effectively erased its entire stock market loss created with the 13% drop on Monday.
Indeed, MU shares are, in the extended session leading to the Thursday session, up 18.02% from their last closing price of $1,047.92 to $1,236.71 at press time.
Micron stock price one-week chart. Source: Google The upsurge is driven by the earnings report covering the fiscal third quarter (Q3), which featured a double beat of analyst estimates and a quadrupling of revenue relative to the same period in the previous year.
Specifically, Micron announced its earnings per share (EPS) amounted to $25.11, while $20.78 was expected, and its revenue was $41.46 billion, significantly above the consensus forecast of $35.84 and $9.3 billion 12 months earlier.
Micron stock soars 292% in 2026 Looking at the MU stock market performance, the extended session upsurge not only erased the losses from earlier in the week but also sent the equity above its previous 52-week high of $1,213.56.
Overall, Micron shares are up 232.23% year-to-date (YTD) and soared 723.51% in the last year by the Wednesday closing bell price at $1,047.92. Once the Thursday, June 25 pre-market rise is accounted for, the rallies increase to 292.08% and 871.87%, respectively.
Wall Street sets Micron stock price for the next 12 months Elsewhere, Wall Street analysts also reacted positively to the earnings. In the hours following the earnings, Micron received more than a dozen rating revisions, with every one of them featuring a ‘Buy’ recommendation, per the data Finbold retrieved from TipRanks.
The highest new 12-month price target was assigned by Melius Research’s Ben Reitzes and amounts to $2,200 – simultaneously the new Street high – for a 77.89% forecasted rally.
The lowest came from Morgan Stanley (NYSE: MS) analyst Joseph Moore, who set his sights at $1,200 – an upgrade from the previous $1,050 despite effectively predicting a 2.97% decline from $1,236.71 at press time.
Featured image via Shutterstock
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Micron Technology’s latest earnings were not just another strong AI-chip result, but a warning that the next big shortage in artificial intelligence may be hiding in memory.
The company reported record fiscal third-quarter revenue of $41.5 billion and adjusted profit of $25.11 per share, both comfortably ahead of Wall Street estimates.
Its shares jumped 12% in after-hours trading, extending a rally that has already pushed Micron’s market value above $1 trillion.
But the real story was the signal from customers: they are no longer just buying memory chips. They are trying to lock up future supply before everyone else does.
For years, the AI trade has revolved around Nvidia and the graphics processors needed to train and run large models.
Micron’s results suggest investors may now need to widen the frame.
AI models need more than processors. They need fast memory to move and store huge amounts of data.
That is where high-bandwidth memory, or HBM, comes in.
These chips sit alongside advanced AI processors and help feed them data at the speed modern AI workloads require.
Micron said that customers had committed $22 billion to secure memory-chip supply under agreements with 16 strategic customers across data centres, consumer devices and autos.
That number matters because it shows how memory is being increasingly treated as a strategic infrastructure.
Daniel Newman, CEO of Futurum Group, told Reuters that the scale of the AI buildout has been underestimated, adding that memory should continue to command “premium pricing” while supply remains constrained.
Micron is no longer just a cyclical chip storyMemory has historically been one of the most boom-and-bust corners of the chip industry.
As supply tightens, chipmakers raise prices and expand capacity, but once supply catches up, prices and margins typically come under pressure.
Micron is trying to change that story.
The company’s new customer agreements include take-or-pay commitments, cash deposits and pricing floors.
In plain English, customers are committing money and volume ahead of time, while Micron gets better visibility on demand and some protection if the market turns.
As per the company, the remaining performance obligations (RPOs) tied to these agreements are around $100 billion.
That gives investors a clearer view of future contracted revenue than they would normally expect from a memory company.
That is why investors are re-rating Micron: customers are not just buying for today’s demand, but securing future supply to avoid being caught short.
Art Hogan, chief market strategist at B. Riley Wealth, told Reuters that pure memory demand had risen rapidly and that Micron “sits at the center” of that shift.
He also described the company’s trillion-dollar valuation milestone as an “exclamation point” on the demand required to run AI data centres.
The sharpest post-earnings reaction came from D.A. Davidson analyst Gil Luria, who raised his price target on Micron to $2,000 from $1,500, setting a new Street-high target while keeping a Buy rating.
His argument goes to the heart of the rerating debate.
Luria said Micron now has “some of the semi industry’s best visibility”, helped by long-term strategic customer agreements that give the company a clearer view of future demand than investors normally expect from a memory-chip maker.
The analyst pushed back against the idea that Micron is already near the top of the cycle.
He argued that “the memory cycle is far from over”, with tight supply-demand dynamics likely to last through at least calendar 2027, even as Micron spends heavily on capacity.
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Micron soared in premarket trading on Thursday after the memory maker reported blockbuster third-quarter earnings as the AI boom causes demand for memory to surge.
The company's revenue more than quadrupled from $9.3 billion a year earlier to $41.46 billion in its fiscal third quarter, it reported on Wednesday. Revenue came in higher than analyst expectations of nearly $36 billion, according to LSEG consensus estimates.
The company is now forecasting revenue of about $50 billion for the current quarter, an increase from $11.3 billion in the prior year. Its stock was last seen up 16.4% in premarket trading and rose a staggering 723% over the past year, pushing the company's market cap to $1.2 trillion.
Micron shares over the past year.
Micron has benefited from the AI infrastructure buildout by major hyperscalers, as AI data centers require large amounts of memory chips. That has reduced the supply of memory available for smartphones, PCs, and other devices, creating a supply imbalance that has pushed memory prices higher and boosted Micron's results.
The company said on Wednesday that it has signed 16 long-term agreements with several customers ranging from data centers to automakers, locking in sales for a period of three to five years, and it expects to see financial commitments of $22 billion from them.
The company expects about 40% of its revenue to come from long-term contracts with a minimum price built in, RBC Capital Markets analysts said in a note on Wednesday. That should help limit margin risk even if demand weakens during the contract term, which is typically five years, they added.
"Our base case is for current upcycle to continue through 2027, and SCAs give us added conviction regarding sustainability. We raise estimates, raise PT, and reiterate Outperform," the analysts said.
Micron reported adjusted earnings of $25.11 per share, beating the analyst consensus estimate of $20.78, on revenue of $41.46 billion. Adjusted gross margin was 84.9%.
For the fiscal fourth quarter, the company forecast adjusted earnings of about $31 per share on revenue of approximately $50 billion.
CEO Sanjay Mehrotra said Micron’s multi-year strategic customer agreements are expected to improve the durability and predictability of the company’s financial performance.
Strong Guidance Reinforces Pricing PowerFollowing the earnings release, Susquehanna analyst Mehdi Hosseini told CNBC that Micron’s earnings beat and outlook underscore the premium customers are paying for DRAM and NAND used in AI server infrastructure.
Hosseini noted that Micron’s fourth-quarter earnings guidance of about $31 per share was well above the consensus estimate of roughly $25, reflecting continued pricing strength driven by what he described as the “memory wall.”
He said customers “have no choice but to pay a premium” and expects that trend to persist despite concerns the cycle may be nearing its peak.
Hosseini also said the current memory cycle differs from previous ones because Micron continues to generate positive free cash flow despite elevated capital expenditures.
He identified the expected transition from AI training to inference workloads in 2028 and the potential easing of restrictions on Chinese memory producers Yangtze Memory Technologies Co. Ltd. and ChangXin Memory Technologies as longer-term risks.
Investors See Further UpsideRequisite Capital’s Bryn Talkington told CNBC that Micron’s improving fundamentals support additional upside following the earnings report.
She cited accelerating earnings growth, tight memory supply, sustained AI demand and increasing investor attention on capital spending and long-term customer agreements as key drivers.
Talkington also pointed to elevated options activity and higher call option premiums, saying they suggest investors are positioning for further gains rather than a period of consolidation.
Durability Of The Cycle Remains Key QuestionBefore the earnings release, Silvant Capital Chief Investment Officer Michael Sansoterra told CNBC that investors were focused on whether the current memory cycle represents a structural change or simply reflects short-term momentum.
Sansoterra said demand continues to outpace supply, supporting pricing, but the key question is how long that imbalance will persist as additional capacity comes online.
He added that Micron’s valuation will depend on its ability to maintain strong margins, particularly operating margins. While he expected a solid quarter and favorable guidance, he cautioned that lofty expectations following the stock’s strong rally could make it difficult to satisfy short-term investors.
Analysts Focus On Margins, AI DemandAhead of the results, Evercore ISI analyst Amit Daryanani told CNBC investors should closely watch Micron’s gross margins and updates on 2027 memory capacity allocations.
Daryanani said gross margins in the 40% to 80% range would indicate whether pricing remains healthy, while commentary on future capacity commitments could provide insight into the longevity of the AI-driven memory cycle.
According to Daryanani, investors are no longer debating whether the memory upcycle exists but rather how much of the long-term AI opportunity has already been priced into memory stocks.
He also said memory manufacturers must demonstrate they can sustain stronger earnings and build more durable business models beyond the current cycle.
MU Price Action: Micron Technology shares were up 17.50% at $1232.00 during premarket trading on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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A blockbuster earnings report from Micron Technology NASDAQ:MU breathed fresh life into the artificial intelligence trade on Thursday, sending semiconductor stocks surging globally and temporarily easing investor concerns over stretched valuations and the enormous costs associated with building AI infrastructure.
Micron shares rose 16% in premarket trading after the company reported record quarterly revenue, record gross margins and record earnings, while also unveiling long-term agreements designed to lock in supplies of its high-bandwidth memory chips.
The upbeat report helped reverse a recent pullback in technology stocks that had been triggered by concerns that years of blistering gains in AI-related shares had pushed valuations to uncomfortable levels.
Investor worries had also mounted over whether hundreds of billions of dollars being invested in AI infrastructure would generate returns quickly enough to justify the spending.
Micron's results show demand for AI hardware remains strongMicron's results suggested demand for AI hardware remains exceptionally strong.
The company, the only US-based producer of high-bandwidth memory chips used alongside Nvidia's AI processors, said customers had committed $22 billion to secure supplies of memory chips.
For an industry historically characterised by pronounced boom-and-bust cycles, analysts said the commitments represent an important shift.
Micron also announced it had signed 16 strategic customer agreements aimed at securing supply relationships over several years.
AI customers are no longer simply buying more memory chips.
Increasingly, they are attempting to guarantee access to scarce components viewed as critical to future computing infrastructure.
"The sun is shining again, as Micron's earnings announcement after the US close went very well," Swissquote senior analyst Ipek Ozkardeskaya said in an email.
She added that the earnings beat had improved sentiment across AI and technology stocks.
The company also outlined plans to increase capital expenditure, but investors appeared willing to overlook concerns about higher spending in light of the strength of demand.
The positive sentiment was reinforced by Qualcomm.
Shares of Qualcomm climbed about 12% in premarket trading after the company forecast that its data-centre business could generate $15 billion in revenue by 2029.
Chief Financial Officer and Chief Operating Officer Akash Palkhiwala also raised Qualcomm's fiscal 2029 revenue target for its non-handset businesses to $40 billion from $22 billion.
The forecasts added to growing confidence that AI-related demand is broadening beyond a handful of companies and increasingly supporting a wider technology ecosystem.
The rally spread rapidly through global markets.
In South Korea, Samsung Electronics rose 5.3%, while rival SK Hynix surged more than 13%.
The gains helped propel the benchmark KOSPI index more than 5% higher as the world's best-performing major stock market this year continued its volatile, retail-driven AI rally.
"Micron's earnings offered confidence, or relief that blistering profit growth is yet to reach an end," said Huh Jae-hwan, analyst at Eugene Investment Securities.
Japanese equities also benefited, with the Nikkei 225 climbing 4.6% to a record closing high of 72,366.34.
European semiconductor companies joined the advance after Micron indicated that tight chip supplies could extend beyond 2027.
Shares of Dutch semiconductor equipment maker ASML Holding rose 5.1%, while ASM International gained 6.6%.
BE Semiconductor Industries advanced 5.5%, Germany's Infineon Technologies added 5.6%, and STMicroelectronics climbed 4%.
Nasdaq futures rose more than 2% as investors rotated back into technology stocks.
Despite Thursday's rebound, the Nasdaq remained on track for its largest monthly decline since March 2025, while the Philadelphia Semiconductor Index was headed for its worst week since the Middle East conflict escalated earlier this year.
Inflation remains a riskInvestors are now turning their attention to the latest release of the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred measure of inflation.
Markets have been unsettled by expectations that the Federal Reserve could still raise interest rates this year after recent inflation data came in hotter than expected.
"The main question is less whether both headline and core go up—they are widely expected to—but rather how 'stale' these numbers already are," Mohamed El-Erian, Rene M. Kern Professor of Practice at the Wharton School and Lauder Senior Global Fellow at the University of Pennsylvania, said in a post on X.
"These numbers come before the recent sharp fall in oil prices, which will result in lower headline inflation and ease some of the pressures on core. The question being debated is by how much, including whether May will prove to be the peak inflation month," he added.
For now, Micron's results have reminded investors that despite concerns about valuations and spending, demand for AI infrastructure shows few signs of slowing.
The S&P/ASX Small Ordinaries Index (ASX) was trading at 3,476.90, down 0.16% or 5.50 points yesterday, although the index remained 3.06% or 109.70 points higher over the past five days.
Several ASX-listed companies have released operational, commercial and investor updates this morning, spanning copper, graphite, carbon dioxide transport technology and base metals production.
Aruma to host Tillex copper-silver webinar Aruma Resources Ltd (ASX:AAJ) will host an investor webinar on Wednesday, July 1, 2026, at 11:00am AEST.
Managing director Grant Ferguson will provide an update on the company’s Tillex Copper-Silver Project in the Timmins mining district of Ontario, Canada, followed by a question-and-answer session.
Investors may submit questions ahead of the webinar by emailing [email protected].
International Graphite signs graphite supply and sales support agreement International Graphite Ltd (ASX:IG6, FRA:H99, OTC:IGRPF) has signed a commercial agreement with Hong Kong-based trading company Wogen Pacific Limited to supply graphite concentrate and provide product sales and marketing support for the Collie Micronising Facility in Western Australia.
Wogen Pacific is a subsidiary of Wogen Limited, a specialist metals and minerals trading group with more than 50 years of experience in global markets.
Under the Heads of Terms agreement, Wogen will buy, as principal, a minimum of 3,000 tonnes per year of micronised graphite from the Collie facility from the point of commercial production, for exclusive distribution to Asia-Pacific customers.
Wogen has also committed to sourcing up to 10,000 tonnes per year of flake graphite concentrate feedstock to support production growth over time.
Sales terms will be agreed on a spot basis, while International Graphite will also have access to Wogen’s supply chain finance solutions to support operations and capital efficiency.
The Heads of Terms is non-binding and is intended to be replaced with binding agreements as the facility moves closer to commercial production.
Provaris completes key FEED milestone for CO2 tank Provaris Energy Ltd (ASX:PV1, OTC:GBBLF, FRA:WS90) has completed a key front-end engineering and design milestone for its proprietary low-pressure YP-Provaris LCO2 tank.
The detailed engineering package has been submitted to DNV to support a General Approval for Ship Application approval process.
Provaris said completion of the FEED program and the associated approvals process would help de-risk its strategy to commercialise its cargo containment solution for the emerging maritime transport and storage of CO2 market.
The company noted that global carbon capture and storage investment is forecast by DNV to approach US$80 billion by 2030.
With a design capacity of 25,000 cubic metres, the YP-Provaris LCO2 tank is designed to address limitations associated with alternative Type C tanks.
The tank incorporates a detailed structural design based on a proprietary sandwich-type structure engineered in accordance with the IGC Code.
Alara marks 50th copper concentrate shipment from Oman Alara Resources Limited (ASX) has dispatched the 50th shipment of copper concentrate from the Al Wash-hi Majaza copper-gold mine in Oman.
The mine is operated by Alara’s joint venture company Al Hadeetha Resources LLC, in which Alara holds a 51% interest.
The 50th shipment, comprising 456 wet metric tonnes of copper concentrate, departed Sohar Port on June 21, 2026.
The parcel contained around 83 tonnes of copper and 64 ounces of gold.
Across all 50 shipments, the operation has now dispatched 62,684 wet metric tonnes of copper concentrate containing 10,988 tonnes of copper metal.
Alara said the milestone reflected consistent operational performance and the growing production track record of the Al Wash-hi Majaza mine.
Total Revenue: $41.5 billion, up 74% sequentially and 346% year-over-year.DRAM Revenue: $31.3 billion, up 343% year-over-year, representing 76% of total revenu
The memory chip superstar blew past results in its third-quarter earnings report, sending the stock up 15% after hours on Wednesday as the company both smashed third-quarter expectations and gave much better guidance than expected.
The results showed that the AI boom isn't slowing down and that memory shortages are expected to persist at least through 2028. Management said it was in the early innings of significant innovation and productivity improvements, and that the memory industry has been structurally transformed by AI.
Let's take a look at a few of the big numbers from the earnings report that show how the memory shortage is driving blockbuster results for Micron.
Image source: Getty Images.
1. 346% Micron reported 346% revenue growth in the quarter to $41.5 billion, and its year-over-year revenue growth accelerated again.
Micron's guidance called for similar growth in the fourth quarter, with revenue expected to reach $50 billion. That growth is being driven by soaring prices in the memory market as unit sales in the key data center are only expected to grow by the high teens. Meanwhile, unit volumes are falling in the PC and smartphone market.
2. 84.6% Micron's gross margin came in at 84.6% in the quarter, ahead of its own guidance at 81%, and topping even Nvidia, which has hovered around 75%. At that level of gross margin, Micron is selling its chips for roughly six times their direct costs, making the company almost impossibly profitable.
Though management guided to a gross margin of 86%, it will be difficult for the company to improve on that number, and it's likely to plateau soon. That also means that its profit growth will start to slow as well.
3. 80.4% 80.4% was Micron's operating margin in the quarter, again showing the company delivering windfall profits. Almost no company in the world can generate an operating margin that wide.
In addition to the impact of high prices, the operating margin also shows that the company is being disciplined with its spending.
4. $28.2 billion Micron produced $28.2 billion in net income, making it one of the most profitable companies in the world based on the bottom line.
Better yet, the company expects to top $40 billion in the fourth quarter, giving the company run rate profit of $160 billion.
Micron just introduced strategic customer agreements (SCA), longer-term contracts that typically last five years, to alleviate some of the cyclical risk facing the company.
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What it means for investors Micron is too big to repeat the feat it's accomplished over the year, with the stock jumping nearly 1,000%, but it can still deliver meaningful gains if it continues to execute.
Wednesday's report was virtually flawless. It's not a surprise to see the stock up double digits again.
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Tuesday’s Sellers Have a Problem Now Tuesday’s 13% decline and Wednesday’s follow-through looked like the start of a real reassessment of chip valuations. Then Micron reported after the close and the after-hours move erased the entire two-day selloff and put the stock above the June 22 high. Every fund that sold chips Tuesday is staring at a gap higher Thursday morning with a decision to make.
The question driving the selloff was whether AI spending was getting ahead of itself. Micron’s CEO Sanjay Mehrotra’s answer was sixteen customers putting down $22 billion in cash deposits and locking into five-year take-or-pay contracts with pricing floors. Data center, consumer electronics, automotive buyers, all fighting for the same allocation. The remaining obligations tied to those deals run to roughly $100 billion. That is not a forecast number. That is revenue on the books.
Qualcomm muddied it slightly. The company said this week its new AI chips are designed to run with less expensive memory, and if competing architectures reduce the premium on high-bandwidth memory over time, Micron’s margins face a question that is not going away. Mehrotra pointed back at the contracts. Buyers are locking in at current pricing because they do not believe alternatives show up at scale, and the way I see it, $22 billion in cash deposits is a stronger argument than a product announcement from a competitor.
The stock tripled in 2026 on the AI trade before this week’s selloff. Now it has $100 billion in contracted obligations underneath. Micron is the only U.S. company producing the high-bandwidth memory that runs alongside Nvidia’s processors in AI servers, and CEO Mehrotra said supply stays tight past 2027. New fabs take years to build. Every major AI buyer just committed in writing. The bears need to explain what changes that picture and they do not have an answer yet.
Shares of memory specialist Micron Technology (MU 1.32%) jumped about 16% in after-hours trading on Wednesday, climbing from about $1,049 at Wednesday's close to about $1,215, after the company reported a fiscal third quarter that topped even the most optimistic expectations on Wall Street.
The move snaps a fear-driven artificial intelligence (AI) sell-off that had weighed on chip stocks earlier in the week, and it puts Micron above a $1.2 trillion market capitalization.
No wonder the stock is soaring. The results were incredible.
Micron's fiscal Q3 revenue, for the period ended May 28, 2026, came in at about $41.5 billion. That's up from $23.9 billion in fiscal Q2 and just $9.3 billion in the year-ago quarter -- a 346% year-over-year jump. In addition, Micron's gross margin reached 84.6% on a GAAP basis, and non-GAAP (adjusted) earnings per share hit $25.11.
Topping it all off, all four of Micron's business units -- cloud memory, core data center, mobile and client, and automotive and embedded -- posted higher revenue than both the prior quarter and the year-ago period.
Image source: Getty Images.
A $50 billion outlook, and demand already spoken for The headline number, though, was the outlook. Micron guided fiscal Q4 revenue to $50 billion, plus or minus $1 billion -- well above the $43 billion Wall Street had been modeling.
And the profitability guided was impressive, too. Management said its fiscal fourth-quarter gross margin is expected to climb to about 86%. Additionally, it guided for adjusted earnings per share of $31.00, plus or minus $1.00, for the period.
Meanwhile, the stock's forward price-to-earnings ratio is about 10 -- a remarkably restrained multiple for a company whose top line has more than quadrupled in a year, and one that implies the market is pricing in either a peak in earnings or a sharp deceleration down the road.
What may matter more than the quarter itself, however, is what management said about demand durability.
Micron announced what it called "transformational Strategic Customer Agreements" -- multi-year deals that lock in volume and provide pricing visibility for memory supply. HBM4, built on Micron's 1-beta DRAM technology, is already in high-volume shipments to its lead customer, with qualification samples now going to additional end customers. The 16 signed agreements represent about 20% of Micron's DRAM volume and a third of its NAND volume over the agreement period.
"We believe our multi-year Strategic Customer Agreements will significantly enhance the durability and predictability of Micron's strong financial performance," Micron CEO Sanjay Mehrotra said in the company's fiscal Q3 earnings release.
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For investors who spent the week dumping AI-exposed semiconductors on fears of peaking demand, the report is a clean rebuttal.
Micron's cloud memory business unit, the most direct AI proxy in the company's portfolio, grew revenue from $3.39 billion a year ago to $13.77 billion, and its operating margin hit 78%. The core data center unit grew even faster, with revenue up more than sevenfold year over year. None of this looks like the profile of a market getting ready to roll over.
Of course, this doesn't mean there aren't risks to both Micron stock itself and the overall AI trade. Note that Micron's capital expenditures climbed to $7.1 billion in fiscal Q3 alone as it races to bring new HBM capacity online. And the memory business has always been cyclical, with customers prone to over-ordering when supply is tight and canceling when it isn't.
With that said, the Strategic Customer Agreements are notable. But their terms haven't been disclosed, so there's uncertainty surrounding exactly what this means.
Overall, however, the central question the market was asking heading into this report was whether AI memory demand was peaking. The combination of $50 billion in next-quarter revenue, an 86% gross margin, and multi-year agreements that provided contracted supply assurance across meaningful portions of DRAM and NAND is hard to read as anything but a no. For the broader AI trade, that's a meaningful data point -- and probably a relief.
Asian markets rediscovered their appetite for risk on Thursday, helped by a fresh reminder that the AI trade still has hard earnings behind it.
Strong updates from Micron and Qualcomm steadied nerves after a bruising bout of volatility in chip shares, pushing investors back into Japan and South Korea’s technology-heavy markets.
The rebound was powerful, but not carefree. Oil’s retreat helped ease inflation anxiety, while a stronger dollar and a fragile yen kept the interest-rate debate firmly in view.
MSCI’s broad index of Asia-Pacific shares outside Japan rose 1.3% in early trading, while Japan’s Nikkei advanced more than 2%.
South Korea’s KOSPI jumped 5.5%, extending its position as one of the world’s strongest markets this year.
The catalyst came from the chip sector. Micron said customers had committed $22 billion for memory chips, a signal that AI-related demand remains firm despite concerns over stretched valuations.
Qualcomm added to the mood by targeting $15 billion in data centre sales by 2029, strengthening the case that AI spending is moving beyond a narrow group of winners.
Analysts said the results offered a badly needed reset for sentiment after recent selling.
Still, they warned that the rally may need more than one strong earnings cycle to quiet doubts about valuations, debt-funded AI infrastructure spending and future returns.
Energy markets moved in the opposite direction. Brent slipped to $73.34 a barrel, while West Texas Intermediate fell to $70.07 as stranded tankers began leaving the Strait of Hormuz.
The resumption of traffic has reduced the fear premium built into crude during the US-Israel conflict with Iran.
Cheaper oil could help cool some inflation pressure, especially after weeks in which energy risks had complicated the outlook for central banks.
The relief, however, is not complete. Traders remain cautious because the peace process is still fragile and shipping flows through the Gulf are not yet fully normal.
The next test is US inflation. Thursday’s personal consumption expenditures report is expected to show core prices rising 0.3% in May, with the annual rate at 3.4%.
Headline inflation is forecast at 4.1% year-on-year.
That keeps the Federal Reserve under pressure and has helped lift the dollar. The yen traded around 161.73 per dollar, close to levels that could prompt fresh concern in Tokyo.
A break beyond 161.96 would push the currency to its weakest level since 1986.
Gold also felt the squeeze from higher rate expectations and dollar strength, slipping below $4,000 an ounce for the first time this year.
HomeIndustriesComputers/ElectronicsTech StocksTech StocksThe South Korean memory company could give investors more opportunities beyond Micron, though it may also raise awareness of industry dynamicsLast Updated: June 24, 2026 at 9:09 p.m. ET
First Published: June 24, 2026 at 8:22 p.m. ET
Micron Technology’s latest earnings are further fueling SK Hynix’s stock — and analysts are intrigued about what’s to come after the South Korean memory giant completes its U.S. listing next month.
That listing will make SK Hynix’s stock KR:000660 more accessible to U.S. investors and could also help it fetch a higher valuation multiple, according to analysts. SK Hynix disclosed Wednesday morning that it was seeking to raise nearly $30 billion through a deal that would see shares trade on the Nasdaq as well as in South Korea, where they’re currently listed.
SummaryCompaniesMicron's results beat expectations, boosting optimism over sustained demand for AI-related chipsSK Hynix shares up as much as 11.6% and Samsung Electronics gains up to 6.2%SK Hynix plans to raise up to $29 bln through a Nasdaq secondary listingSamsung and SK Hynix account for more than 55% of KOSPI market capitalisationSEOUL, June 25 (Reuters) - South Korean semiconductor shares rallied on Thursday after U.S. memory chipmaker Micron Technology's (MU.O), opens new tab quarterly results and forecast beat expectations, boosting optimism over sustained demand for AI-related chips.
Shares of SK Hynix (000660.KS), opens new tab and Samsung Electronics (005930.KS), opens new tab rose as much as 11.6% and 6.2%, respectively, in early trade, tracking a rally in U.S. chip stocks after Micron's earnings and outlook reinforced confidence in the memory sector.
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The rally also followed SK Hynix's announcement on Wednesday of plans to raise up to 45.45 trillion won ($29.52 billion) through a secondary listing on Nasdaq, as it seeks to capitalise on strong investor appetite for AI stocks.
The benchmark KOSPI (.KS11), opens new tab, in which Samsung Electronics and SK Hynix together account for more than 55% of market capitalisation, was trading up 5.3% as of 0019 GMT.
Micron, a key supplier for Nvidia's (NVDA.O), opens new tab AI processors alongside South Korean chip makers, forecast quarterly profit and revenue well above expectations on Wednesday and said its customers had committed $22 billion to lock in supplies of memory chips, sending its shares surging 12% in after-hours trading.
The upbeat outlook lifted shares of U.S.-listed chipmakers late on Wednesday, with more than $400 billion added in market value after the strong forecasts from Micron and Qualcomm (QCOM.O), opens new tab breathed fresh life into Wall Street's recently waning AI stock rally.
Micron's forecast - and third-quarter results that beat Wall Street estimates - underscore how AI-driven shortages are forcing its large-scale data center customers to fund capacity, reshaping the memory market.($1 = 1,539.6600 won)
Reporting by Heekyong Yang Editing by Ed Davies
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Micron Technology, Inc. (MU) Q3 2026 Earnings Call June 24, 2026 4:30 PM EDT
Company Participants
Satya Kumar - Corporate VP of Investor Relations & Treasurer
Sanjay Mehrotra - CEO, President & Chairman
Mark Murphy - Executive VP & CFO
Conference Call Participants
Timothy Arcuri - UBS Investment Bank, Research Division
Joseph Moore - Morgan Stanley, Research Division
Christopher Muse - Cantor Fitzgerald & Co., Research Division
Vivek Arya - BofA Securities, Research Division
Sreekrishnan Sankarnarayanan - TD Cowen, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for joining us, and welcome to Micron Technology's Fiscal Third Quarter 2026 Financial Conference Call. After today's prepared remarks, we will host a question-and-answer session. Webcast viewers, please note that you will be able to advance the slides as you view at your own pace.
I will now hand the conference over to Satya Kumar, Corporate Vice President of Investor Relations and Treasury. Satya, please go ahead.
Satya Kumar
Corporate VP of Investor Relations & Treasurer
Thank you, and welcome to Micron Technology's Fiscal Third Quarter 2026 Financial Conference Call. On the call with me today are Sanjay Mehrotra, our Chairman, President and CEO; and Mark Murphy, our CFO. Today's call is being webcast from our Investor Relations site at investors.micron.com including audio and slides. In addition, the press release detailing our quarterly results has been posted on the website, along with the prepared remarks for this call.
Today's discussion contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include statements regarding our future financial and operating performance and our business model, as well as trends and expectations in our business, customers, market, industry products and regulatory and other matters. These statements are based on our current assumptions, and we assume no obligation to update these statements. Please refer to our most recent financial reports on Form 10-K, Forms 10-Q and
Micron (MU - Free Report) came out with quarterly earnings of $25.11 per share, beating the Zacks Consensus Estimate of $21.39 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +17.39%. A quarter ago, it was expected that this chipmaker would post earnings of $8.8 per share when it actually produced earnings of $12.2, delivering a surprise of +38.64%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Micron, which belongs to the Zacks Computer - Integrated Systems industry, posted revenues of $41.46 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 12.91%. This compares to year-ago revenues of $9.3 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Micron shares have added about 268.5% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Micron?While Micron has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Micron was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $24.91 on $42.64 billion in revenues for the coming quarter and $62.30 on $115.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Integrated Systems is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, IBM (IBM - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 22.
This technology and consulting company is expected to post quarterly earnings of $2.96 per share in its upcoming report, which represents a year-over-year change of +5.7%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level.
IBM's revenues are expected to be $17.86 billion, up 5.2% from the year-ago quarter.
