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As Micron customers try and adjust to a new reality of constantly rising memory prices, investors in the company are enjoying historic profit margins.

Alongside its better-than-expected earnings report on Wednesday, Micron disclosed a gross margin, or the profit left after accounting for the cost of goods sold, of 84.9%, up from 74.9% in the prior period and 39% a year earlier.

That's the highest percentage among all major U.S. tech companies, topping social media giant Meta, which recorded a gross margin in the latest quarter of 81.9%, and AI chipmaker Nvidia at 75%. It's a remarkable jump in pricing power for a company that's long been viewed as producing a commodity.

"Fiscal Q3 gross margin more than doubled from a year ago and was a new company record," CFO Mark Murphy said on the earnings call.

Fresh records are coming fast and furious for Micron, as data center companies gobble up all the memory they can find to meet artificial intelligence demand. Revenue of $41.46 billion in the fiscal third quarter was up more than $20 billion from the prior period, which had been the company's highest in its 48-year history. Net income of $28.24 billion is up over 100% from the previous high, also last quarter.

As of Wednesday's close, Micron's stock is up over 700% in the past year, pushing its market cap well past $1 trillion. It was up another 14% in extended trading.

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Nvidia, Advanced Micro Devices and Google need Micron's high-bandwidth memory for their powerful AI processors and surrounding systems. In addition to the rising prices those companies are having to pay due to the memory shortage, Apple and other consumer device makers face increased costs for memory components that also come from Micron and a small set of other vendors.

Apple CEO Tim Cook told the Wall Street Journal, in an interview published last week, that the iPhone maker is gong to have to lift prices to deal with a memory situation he described as "unsustainable."

Micron said on Wednesday that it's striking long-term deals called strategic customer agreements (SCAs) at price levels that would keep the company's margins high. That's a shift for an industry that typically focuses on short-term supply.

"For our SCAs with price bands, the floor price enables a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle," CEO Sanjay Mehrotra said on the call.

Prior to Micron's booming margin, Nvidia was seeing unprecedented increases in profitability as its graphics processing units became the key piece of infrastructure for developing AI models. Nvidia is now the world's most valuable company, with a market cap of close to $5 trillion.

But Nvidia's gross margin peaked at around 79% in early 2024, about six percentage points below Micron's current level. Among the other megacap companies today, chipmaker Broadcom's margin sits at 69.5%, followed by Microsoft at 67.6% and Alphabet at 62.4%.

Across large-cap tech in the U.S., Micron's rival Sandisk is the company with the next-highest margin. In late April, Sandisk reported an increase in its quarterly gross margin to 78.4% from 51.1% in the prior period.

For investors wondering where Micron goes from here, the company is confident that the current economics will hold. It projected a gross margin for the fiscal fourth quarter of roughly 86%, and Murphy said the company expects "the market to remain tight beyond 2027."

Mehdi Hosseini, an analyst at Susquehanna, told CNBC's "Closing Bell Overtime" on Wednesday that it's quite a turn for an industry that's "been out of favor for 30 years since inception"

With "the memory wall playing out, customers have no choice but to pay a premium," said Hosseini, who recommends buying Micron shares.

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After years of being the wallflower, Micron Technology (MU 1.32%) has taken center stage. The company's flash memory and storage chips are critical to the processing of artificial intelligence (AI), which continues to drive unrelenting demand.

Ahead of Micron's financial release after the market close on Wednesday, investors were sitting on the edge of their seats to see if there was any truth to reports of an AI slowdown. The company put those rumors to rest, delivering record revenue, gross margin, and earnings per share (EPS) -- and is poised to smash those records again next quarter.

Image source: Micron Technology.

Blockbuster results are just the beginningMicron reported the results of its fiscal 2026 third quarter (ended May 28), and both sales and profit growth were off the charts. The company generated revenue of $41.5 billion, up 346% year over year and 73% sequentially. This resulted in adjusted earnings per share (EPS) that soared more than 13 times (not a typo) to $24.67.

For context, analysts' consensus estimates were calling for revenue of $35.9 billion and EPS of $20.86, so Micron simply crushed Wall Street's expectations.

CEO Sanjay Mehrotra acknowledged the unprecedented demand, saying, "Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era."

The company's cloud memory segment led the charge, as revenue of $13.7 billion surged 306% year over year. Revenue from Micron's core data center business unit jumped 653% to $11.5 billion, while revenue from its mobile and client business segment climbed 254% to $11.5 billion. Not to be outdone was the automotive and embedded segment, with revenue of $4.6 billion, up 311%.

Micron continued to enjoy significant margin expansion that fueled its record profits. The company's gross margin more than doubled, jumping 4,690 basis points to 84.6% from 37.7% in the prior-year quarter. Micron's cash generation was off the charts, as operating cash flow of $25.4 billion increased 451% year over year and adjusted free cash flow of $18.3 billion soared 839%.

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Management predicts that its growth will accelerate further. For the fourth quarter, Micron is guiding to revenue of $50 billion, representing 342% growth. The company's margin expansion is also expected to continue, climbing to 86% at the midpoint of its guidance, driving adjusted EPS of $31.00, a 10x increase. That's leagues ahead of Wall Street's expectations for revenue of $43.45 billion and EPS of $25.43.

One of the most telling pronouncements was regarding the imbalance between supply and demand (emphasis mine): "We now expect supply-demand conditions for both DRAM and NAND to remain tight beyond calendar 2027."

The company continued its quarterly dividend of $0.15 per share, payable on July 21 to shareholders of record as of July 6. Its current yield is less 0.10%, and the company is spending less than 3% of its profits to fund the dividend, so there is plenty more where that came from. Tucked away in Micron's investor presentation was this nugget: "Over time, we expect to return 100% of our excess cash to shareholders."

Yet even in the face of these blistering results, the stock is still remarkably cheap, selling for 17 times forward earnings.

Investors clearly appreciated the results, bidding shares up 15% in after-hours trading, as of 6:45 p.m. ET.

The popular narrative about the perils of AI notwithstanding, Micron stock remains a buy.

Image: Bigstock

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Key Takeaways Micron Q3 Numbers Produce Quadruple-Figure Earnings GrowthRevenue Growth Next Quarter Projected 454% Year Over YearMU Shares Up Double-Digits in Late Trading on the News Wednesday, June 24th, 2026

Micron (MU - Free Report) became the latest “ground zero” stock of the AI trade, putting up NVIDIA (NVDA - Free Report) -like boffo earnings figures for its fiscal Q3 after today’s closing bell. Earnings of $25.11 per share easily surpassed the Zacks consensus of $20.98, which had been an estimated gain of +998% year over year. Today’s amazing figure represents +1215% earnings growth in one year. Even at NVIDIA’s best, they weren’t throwing up +1200% gains.

And that’s just for starters. Micron’s Q3 revenues of $41.46 billion zoomed past the $36.52 billion analysts had been expecting, for an astounding year-over-year revenue gain of +345.8%. Operating Cash Flow ballooned up to $25.39 billion in the quarter, for a +113.4% gain — quarter over quarter. Cloud Memory gained +78% on the operating side, Core Data Center grew +83%.

Guidance for next quarter at Micron also does not disappoint. Earnings of $30-32 per share are now expected, well up from the $24.91 in the Zacks consensus. Revenues are projected to be between $49-51 billion, well aloft of the estimate for $42.64 billion. In the year-ago quarter, the company brought in sales of $11 billion. This amounts to +454% top-line growth in a year. The company expects to return, it says, 100% of “excess cash” to shareholders at some point.

This tells us, like an air-horn in a closed setting, that the AI trade is far from over. Wobbly markets here at home and over in the KOSPI in South Korea showed some risk aversion to taking the AI trade up higher. This is especially due to the highly concentrated ETFs that focused on SK Hynix, which surpassed Samsung in market cap and both, like Micron, have entered the trillion-dollar market cap space. As an aside, Zacks ETF Strategist Neena Mishra wrote about this earlier today in her excellent Fund Newsletter, which you can access here.

Micron shares are up +14% on the news in after-hours trading. Shares are up +267% year-to-date and +719% since this time last year. The Idaho-based company has single-handedly made people forget about the potato industry. More importantly for the AI trade in general, we expect the recent sell-off to become nice entry points.

Questions or comments about this article and/or author? Click here>>

Published in artificial-intelligence semiconductor tech-stocks

Last year, options-focused exchange-traded fund (ETF) manager YieldMax launched the YieldMax Semiconductor Portfolio Option Income ETF (CHPY 0.02%). This actively managed fund aims to provide capital appreciation through a focused portfolio of semiconductor stocks and generate current income. With a cumulative return of more than 150% since its inception and a jaw-dropping current distribution yield of more than 45%, the fund has certainly delivered on those objectives.

Here's a closer look at this ETF's investment strategy and whether it can continue to deliver its monster yield.

Image source: Getty Images.

A dual strategy to capitalize on the AI boom The YieldMax Semiconductor Portfolio Option Income ETF, or CHPY, has a dual investment mandate to provide investors with:

Capital appreciation: The fund invests in a select portfolio of 15 to 30 semiconductor stocks. Its top holding is currently Micron Technology (MU 1.32%) at 6.3% of its portfolio. It selects companies based on liquidity, volatility, and market opportunity. This portfolio serves as a base for its options trading strategy while also capturing capital appreciation potential as these stocks rise in value. Weekly income: The ETF also aims to provide consistent weekly income by selling options on semiconductor stocks. The semiconductor stocks it holds are some of the biggest beneficiaries of the AI investment boom. For example, Micron recently unveiled a strategic memory storage and supply agreement with Anthropic to help the AI start-up continue scaling in the coming years. Micron's growing importance to the semiconductor sector has driven its stock price up 770% over the past year. CHPY aims to capture this value appreciation by holding a portfolio of top AI stocks.

NYSEMKT: CHPYTidal Trust II - YieldMax Semiconductor Portfolio Option Income ETF

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Strategically using options The second part of CHPY's strategy is to generate income for investors by selling options on its semiconductor stocks each week. However, instead of writing covered calls, which caps its upside, the fund sells call spreads on its portfolio holdings. A call spread involves selling a call option at a strike price above the stock's current price and buying another call option at a higher strike price. That higher-priced option covers the trade, leaving the owned shares uncovered. These trades generate a net credit (the difference between what the fund received for selling the lower-priced call and paid to buy the higher-priced call), which the fund distributes to investors each week.

For example, the fund currently holds 62,214 shares of Micron. It wrote 613 calls on those shares (each call represents 100 shares) that expire later this week at a $1,125 strike price while simultaneously buying the same number of calls for the same expiration date at a $1,160 strike price. With Micron shares recently around $1,080 apiece, this option trade is on track to expire with a full gain of the net credit.

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So, what's the catch? CHPY's options trades aim to capitalize on the volatility of semiconductor stocks. Given their volatility, the options carry hefty premiums, which the fund aims to harvest by writing out-of-the-money (above the current price) call options, which are then hedged with even further out-of-the-money purchased call options. The desired outcome is that the stock will remain below the written call strike price at expiration, enabling it to keep 100% of the net credit generated by the trade.

However, writing credit spreads isn't a risk-free trade. If the underlying stock, in this case Micron, surges past the written call strike price ($1,125), the trade can incur a loss, capped at the difference between the sold and purchased calls, less the initial net credit received.

Another risk factor is the potential for semiconductor stock volatility to decline as AI hype fades. Lower volatility would result in less lucrative options trades.

Meanwhile, the fund's semiconductor stock portfolio has downside risk. If these stocks sell off, CHPY's price would fall.

A higher risk, higher reward AI income fund CHPY offers investors upside potential from its handpicked portfolio of semiconductor stocks. Additionally, it provides them with a lucrative weekly income stream from writing call spreads on its holdings. However, that income can vary significantly (its weekly per-share distribution payments have ranged from $0.3454 to $0.7754 since its inception early last year). Meanwhile, the fund's value can fall if semiconductor stocks slump. Given these risk factors, this ETF isn't for everyone. It's best for investors with a high risk tolerance who want to allocate a small portion of their portfolio to cash in on the AI boom.

BOISE, Idaho, June 24, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2026, which ended May 28, 2026.

Fiscal Q3 2026 highlights

Revenue of $41.46 billion versus $23.86 billion for the prior quarter and $9.30 billion for the same period last yearGAAP net income of $28.24 billion, or $24.67 per diluted shareNon-GAAP net income of $28.86 billion, or $25.11 per diluted shareOperating cash flow of $25.39 billion versus $11.90 billion for the prior quarter and $4.61 billion for the same period last year “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “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.”

Quarterly Financial Results GAAP(1) Non-GAAP(2)(in millions, except per share amounts)FQ3-26FQ2-26FQ3-25 FQ3-26FQ2-26FQ3-25        Revenue$41,456 $23,860 $9,301  $41,456 $23,860 $9,301 Gross margin 35,056  17,755  3,508   35,199  17,876  3,623 Percent of revenue 84.6% 74.4% 37.7%  84.9% 74.9% 39.0%Operating expenses 1,738  1,620  1,339   1,518  1,421  1,133 Operating income 33,318  16,135  2,169   33,681  16,455  2,490 Percent of revenue 80.4% 67.6% 23.3%  81.2% 69.0% 26.8%Net income 28,243  13,785  1,885   28,857  14,021  2,181 Diluted earnings per share (EPS) 24.67  12.07  1.68   25.11  12.20  1.91  For the third quarter of 2026, investments in capital expenditures, net(2) were $7.1 billion and adjusted free cash flow(2) was $18.3 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $30.2 billion. On June 24, 2026, Micron’s Board of Directors declared a quarterly dividend of $0.15 per share, payable in cash on July 21, 2026, to shareholders of record as of the close of business on July 6, 2026.

Quarterly Business Unit Financial Results FQ3-26FQ2-26FQ3-25    Cloud Memory Business Unit   Revenue$13,769 $7,749 $3,386 Gross margin 83% 74% 58%Operating margin 78% 66% 46%    Core Data Center Business Unit   Revenue$11,524 $5,687 $1,530 Gross margin 87% 74% 38%Operating margin 83% 67% 20%    Mobile and Client Business Unit   Revenue$11,521 $7,711 $3,255 Gross margin 87% 79% 24%Operating margin 86% 76% 15%    Automotive and Embedded Business Unit   Revenue$4,634 $2,708 $1,127 Gross margin 79% 68% 26%Operating margin 75% 62% 11% Business Outlook

The following table presents Micron’s guidance for the fourth quarter of 2026:

FQ4-26GAAP(1) OutlookNon-GAAP(2) Outlook   Revenue$50.0 billion ± $1.0 billion$50.0 billion ± $1.0 billionGross marginApproximately 86%Approximately 86%Operating expensesApproximately $1.86 billionApproximately $1.65 billionDiluted earnings per share$30.73 ± $1.00$31.00 ± $1.00 Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Product highlights

HBM4, built on 1-beta DRAM technology, is in high-volume shipments for our lead customer's platform, and qualification samples have been shipped to multiple end-customers.Development of HBM4E, built on 1-gamma DRAM technology, is well underway, with volume production expected in calendar 2027.Qualification samples of 256GB DDR5 RDIMMs, built on 1-gamma DRAM technology and advanced 3D die stacking, has shipped to key server ecosystem enablers.Our LP5X SOCAMM2 products are in high-volume production, and we have expanded our LP5X SOCAMM2 offerings across multiple capacity points.G9-based PCIe Gen6 high-performance SSD is now in high-volume production.We commenced shipments of our high-capacity 245TB QLC SSD.Gen5 QLC PC Client SSD with G9 NAND has achieved successful lead customer qualification.1-gamma 16Gb LPDDR5X has begun high-volume ramp at a leading smartphone OEM, and we are currently sampling our 1-gamma 24Gb LP5X product to multiple smartphone customers.1-gamma LPDDR5 reached automotive product readiness, with samples delivered to key customers, and we shipped our first 1-gamma DDR5 samples to a robotaxi customer.G9-based UFS 4.1 automotive NAND solution began first volume shipments. Investor Webcast

Micron will host a conference call on Wednesday, June 24, 2026 at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call.

We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on LinkedIn, X (@MicronTech) and YouTube (@MicronTechnology).

About Micron Technology, Inc.

Micron Technology, Inc. is an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2026 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our industry, our strategic position, our customers, including customer demand, our products and technology, including expectations on production, and our financial and operating performance, including our guidance for the fourth quarter of 2026, as well as our investments in manufacturing and goals for such investments. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

(1)GAAP represents U.S. Generally Accepted Accounting Principles.(2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings; adjusted free cash flow; investments in capital expenditures, net; and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release. MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
  3rd Qtr.2nd Qtr.3rd Qtr.Nine Months Ended May 28,
2026February 26,
2026May 29,
2025May 28,
2026May 29,
2025      Revenue$41,456 $23,860 $9,301 $78,959 $26,063 Cost of goods sold 6,400  6,105  5,793  18,502  16,244 Gross margin 35,056  17,755  3,508  60,457  9,819       Research and development 1,316  1,250  965  3,737  2,751 Selling, general, and administrative 407  344  318  1,088  891 Other operating (income) expense, net 15  26  56  43  61 Operating income 33,318  16,135  2,169  55,589  6,116       Interest income 215  155  135  509  350 Interest expense —  (32) (123) (106) (353)Other non-operating income (expense), net (321) (98) (68) (559) (90)  33,212  16,160  2,113  55,433  6,023       Income tax (provision) benefit (4,978) (2,371) (235) (8,178) (695)Equity in net income (loss) of equity method investees 9  (4) 7  13  10 Net income$28,243 $13,785 $1,885 $47,268 $5,338       Earnings per share     Basic$25.03 $12.25 $1.69 $41.97 $4.79 Diluted 24.67  12.07  1.68  41.40  4.75       Number of shares used in per share calculations     Basic 1,128  1,126  1,118  1,126  1,114 Diluted 1,145  1,142  1,125  1,142  1,123  MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited) As ofMay 28,
2026February 26,
2026August 28,
2025    Assets   Cash and equivalents$24,995 $13,908 $9,642 Short-term investments 1,027  681  665 Receivables 31,025  17,314  9,265 Inventories 8,567  8,267  8,355 Other current assets 1,123  1,243  914 Total current assets 66,737  41,413  28,841 Long-term marketable investments 4,106  2,038  1,629 Property, plant, and equipment 56,426  51,408  46,590 Operating lease right-of-use assets 683  684  736 Intangible assets 473  468  453 Deferred tax assets 700  680  616 Goodwill 1,150  1,150  1,150 Other noncurrent assets 3,837  3,668  2,783 Total assets$134,112 $101,509 $82,798     Liabilities and equity   Accounts payable and accrued expenses$15,521 $10,997 $9,649 Current debt 582  585  560 Other current liabilities 3,385  2,714  1,245 Total current liabilities 19,488  14,296  11,454 Long-term debt 5,140  9,557  14,017 Noncurrent operating lease liabilities 654  656  701 Noncurrent unearned government incentives 1,020  1,002  1,018 Other noncurrent liabilities 7,086  3,539  1,443 Total liabilities 33,388  29,050  28,633     Commitments and contingencies       Shareholders’ equity   Common stock 128  127  127 Additional capital 14,442  14,092  13,339 Retained earnings 94,682  66,824  48,583 Treasury stock (8,502) (8,502) (7,852)Accumulated other comprehensive income (loss) (26) (82) (32)Total equity 100,724  72,459  54,165 Total liabilities and equity$134,112 $101,509 $82,798      MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited) Nine Months EndedMay 28,
2026May 29,
2025   Cash flows from operating activities  Net income$47,268 $5,338 Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation expense and amortization of intangible assets 6,862  6,203 Stock-based compensation 954  722 Change in operating assets and liabilities:  Receivables (19,953) (123)Inventories (212) 148 Accounts payable and accrued expenses 3,329  38 Other current liabilities 2,139  (681)Other noncurrent liabilities 5,203  259 Other 112  (109)Net cash provided by operating activities 45,702  11,795    Cash flows from investing activities  Expenditures for property, plant, and equipment (19,602) (10,199)Purchases of available-for-sale securities (4,072) (1,203)Proceeds from government incentives 2,989  1,294 Proceeds from maturities and sales of available-for-sale securities 1,233  1,249 Other (236) (30)Net cash used for investing activities (19,688) (8,889)   Cash flows from financing activities  Repayments of debt (9,380) (3,604)Repurchases of common stock - withholdings on employee equity awards (762) (290)Repurchases of common stock - repurchase program (650) — Payments of dividends to shareholders (437) (392)Proceeds from issuance of debt —  4,430 Other 583  70 Net cash used for financing activities (10,646) 214    Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash 8  (3)   Net increase in cash, cash equivalents, and restricted cash 15,376  3,117 Cash, cash equivalents, and restricted cash at beginning of period 9,646  7,052 Cash, cash equivalents, and restricted cash at end of period$25,022 $10,169  MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)  3rd Qtr.2nd Qtr.3rd Qtr. May 28,
2026February 26,
2026May 29,
2025    GAAP gross margin$35,056 $17,755 $3,508 Stock-based compensation 143  121  115 Non-GAAP gross margin$35,199 $17,876 $3,623     GAAP operating expenses$1,738 $1,620 $1,339 Stock-based compensation (198) (176) (148)Other (22) (23) (58)Non-GAAP operating expenses$1,518 $1,421 $1,133     GAAP operating income$33,318 $16,135 $2,169 Stock-based compensation 341  297  263 Other 22  23  58 Non-GAAP operating income$33,681 $16,455 $2,490     GAAP net income$28,243 $13,785 $1,885 Stock-based compensation 341  297  263 Loss on debt prepayments 325  47  46 Other 23  25  58 Estimated tax effects of above and other tax adjustments (75) (133) (71)Non-GAAP net income$28,857 $14,021 $2,181     GAAP weighted-average common shares outstanding - Diluted 1,145  1,142  1,125 Adjustment for stock-based compensation 4  7  19 Non-GAAP weighted-average common shares outstanding - Diluted 1,149  1,149  1,144     GAAP diluted earnings per share$24.67 $12.07 $1.68 Effects of the above adjustments 0.44  0.13  0.23 Non-GAAP diluted earnings per share$25.11 $12.20 $1.91  RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
  3rd Qtr.2nd Qtr.3rd Qtr. May 28,
2026February 26,
2026May 29,
2025    GAAP net cash provided by operating activities$25,388 $11,903 $4,609     Expenditures for property, plant, and equipment (7,826) (6,387) (2,938)Proceeds from sales of property, plant, and equipment 9  5  12 Proceeds from government incentives 733  1,378  266 Investments in capital expenditures, net (7,084) (5,004) (2,660)Adjusted free cash flow$18,304 $6,899 $1,949  The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:

Stock-based compensation;Gains and losses from settlements;Gains and losses from debt prepayments;Restructure and asset impairments; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax (provision) benefit relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately. Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
 FQ4-26GAAP Outlook Adjustments Non-GAAP Outlook       Revenue$50.0 billion ± $1.0 billion  —   $50.0 billion ± $1.0 billionGross marginApproximately 86%  —%A Approximately 86%Operating expensesApproximately $1.86 billion $205 millionB Approximately $1.65 billionDiluted earnings per share(1)$30.73 ± $1.00  $0.27 A, B, C $31.00 ± $1.00 Non-GAAP Adjustments
(in millions)    AStock-based compensation – cost of goods sold$159 BStock-based compensation – research and development 138 BStock-based compensation – sales, general, and administrative 67 CTax effects of the above items and other tax adjustments (55)  $309  (1)   GAAP earnings per share and non-GAAP earnings per share based on approximately 1.15 billion diluted shares.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

SummaryCompaniesMicron sees strong memory chip demand from AI spending growthSupply constraints on production expected to last for at least two yearsMicron forecasts capex of around $10 billion in Q4June 24 (Reuters) - Micron Technology (MU.O), opens new tab forecast quarterly earnings above Wall Street ‌estimates on Wednesday, signaling heavy investments in AI-related infrastructure will drive strong demand for memory chips and sending shares up more than 15% in extended trading.

The company expects fourth-quarter revenue of $50 billion, plus or minus $1 billion, compared with analysts' average estimate of $43.58 billion, according to data ​compiled by LSEG.

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The results and forecast show how the explosive growth of generative AI has turned products ​such as high-bandwidth memory (HBM) into critical components for large-scale data centers.

The strong results add to ⁠a stock rally that allowed Micron to enter the elite $1 trillion club earlier this year on the back of ​its memory chip business.

The stock has surged more than threefold this year, despite a 13% plunge on Tuesday as ​part of a broader selloff.

SUPPLY CONSTRAINTS TO LASTMicron, a key supplier for Nvidia's (NVDA.O), opens new tab AI processors, has benefited as AI chip and server makers rush to secure a limited supply.

Micron, the only U.S.-based manufacturer of high-end memory chips, has seen demand for its HBM chips ​far outstrip its production capacity, and analysts expect demand to exceed supply for the next two to three years.

"The ​size and scale of the AI build out has been underestimated at every turn and memory will continue to command premium ‌pricing on ⁠supply constraints," said Daniel Newman, CEO of tech research firm Futurum Group.

Major memory chip makers are prioritizing high-bandwidth memory to meet AI demand, leaving consumer electronics makers scrambling to secure conventional memory and driving prices of products higher.

"We expect tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints," Micron CEO ​Sanjay Mehrotra said in the ​company's prepared remarks.

"Even as ⁠we expect industry supply to improve gradually in 2028, we currently do not have line of sight as to when memory supply will be able to catch up with ​increasing demand," he added.

SPENDING RAMPSMicron said it intends to increase its capital return, while ​it invests heavily ⁠in expanding infrastructure to satisfy soaring demand.

The company expects fourth-quarter capital expenditure of around $10 billion, while analysts expect spending of $8.89 billion.

Big Tech firms are expected to spend more than $700 billion on AI infrastructure this year, up from around $400 billion in ⁠2025.

It ​reported third-quarter revenue of $41.46 billion, flying past estimates of $35.85 billion.

The company reported ​adjusted profit of $25.11 per share, compared with estimates of $20.78 per share.

Micron expects fourth-quarter adjusted earnings per share of $31, plus or minus $1, compared with ​the estimates of $25.84 per share.

Reporting by Anhata Rooprai and Zaheer Kachwala in Bengaluru, Editing by Deepa Babington and Anil D'Silva

Our Standards: The Thomson Reuters Trust Principles., opens new tab

The company has been reaping the benefits of an industrywide shortage of memory technology, an important component of artificial-intelligence hardware.

Micron Technology Inc. delivered a sales forecast that topped Wall Street estimates after AI-fueled shortages of components sent prices soaring. Revenue is projected to be $50 billion for the fiscal fourth quarter.

Deepwater Asset Management Managing Partner Gene Munster breaks down Micron earnings on "Bloomberg The Close." He says hyperscalers will grow faster for longer than investors expected.

HomeEarnings AnalysisTech 

SummaryMicron Technology, Inc. delivered historic Q3 results, with record revenue, margin expansion, and robust free cash flow, underscoring surging AI-driven memory demand.MU's forward guidance significantly exceeded consensus, with management securing HBM capacity commitments through 2027 and projecting HBM TAM to surpass $100 billion by 2028.Despite a strong rally, MU remains undervalued, trading at 14x forward EPS, and could appreciate another 50% while maintaining reasonable valuation metrics.We continue to recommend accumulating MU on pullbacks, given its compelling growth-and-value profile, operational execution, and strong shareholder return strategy.Looking for a helping hand in the market? Members of BAD BEAT Investing get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off itsarasak thithuekthak/iStock via Getty Images

Our investing group has held a position in Micron Technology, Inc. (MU) since it was trading around the $40 mark. Having tracked this company well before the AI tailwinds emerged over the last year or

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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.

ToplineMicron shares rocketed Wednesday after the chipmaker reported the most profitable quarter in its history, further cementing its role as a beneficiary of the artificial intelligence infrastructure boom.

Micron shares rocketed Wednesday.

Photo by Jonathan Raa/NurPhoto via Getty Images

Key FactsMicron shares briefly jumped more than 15% in extended trading Wednesday after it closed the day down a fraction of a percent.

Micron reported third-quarter revenue of $41.4 billion, up from $9.3 billion in the same period a year ago, according to a filing.

Adjusted diluted earnings per share came in at $25.11, a massive jump from the $1.91 posted in the year-ago quarter, while net income reached $28.24 billion.

Micron set its fourth quarter revenue guidance to $50 billion alongside adjusted diluted earnings per share of $31.00.

Bulls behind Micron’s stock will likely point to the earnings report as proof the company’s earnings stream will prove more durable than bears fear, according to a note from market insights firm Vital Knowledge, which noted supply and demand conditions for Micron will remain tight for at least the next one and a half years.

ContraBears are likely to remain concerned about how Micron can keep up its supply for extreme AI demand, Vital Knowledge’s note added. Micron’s High Bandwidth Memory chips, which allow AI processors to work faster, are completely sold out, as the company has reportedly allocated all of its chip supply for 2026 to commitments with AI data centers. Vital Knowledge also identified management’s expectation for higher capital expenditure ($10 billion in fiscal quarter four) as a potential red flag.

Key BackgroundMicron’s stock has been highly volatile recently. A global chip selloff Tuesday pushed the company’s shares down 13%, erasing two days’ worth of gains. JPMorgan analysts said Tuesday the selloff may have been provoked by anxiety around Micron’s earnings, which are usually seen as a bellwether for AI demand. However, Wednesday’s after-hours surge brought shares from about the $1,050 mark to around $1,175. While concerns have mounted over whether Micron’s stock is driven by momentum trading or fundamentals, the chipmaker has traded up more than 260% since the start of the year amid the AI boom and its demand for Micron products.

Further ReadingMicron Tumbles 13% As South Korean ETF Warning Fuels Chip Sell-Off (Forbes)

The Vanguard Information Technology ETF (VGT 1.32%) offers a lower-cost, diversified play on the broad tech sector, while the iShares Semiconductor ETF (SOXX 1.63%) provides concentrated, higher-volatility exposure to the specialized chipmaking industry.

Technology remains a dominant driver of modern market performance, leading many investors to weigh these two popular options for growth. The choice between them often comes down to whether one prefers the diversified stability of the broad information technology sector or the high-growth, high-volatility potential found specifically within the semiconductor industry. While both focus on tech, their underlying strategies result in very different risk profiles.

Snapshot (cost & size)MetricSOXXVGTIssueriSharesVanguardExpense ratio0.34%0.09%1-yr return (as of June 23, 2026)166.4%46.2%Dividend yield0.3%0.3%Beta2.261.42AUM$47 billion$170.1 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The 0.25-percentage-point difference in expense ratios may matter to some investors -- or it may not. Sure, the Vanguard fund costs just $9 annually for every $10,000 invested, whereas the iShares fund charges $34 for the same investment. But given SOXX’s massive recent outperformance relative to both the S&P 500 and Vanguard’s fund, investors might be happy to pay the slightly higher fee.

Performance & risk comparisonMetricSOXXVGTMax drawdown (5 yr)(45.80%)(35.10%)Growth of $1,000 over 5 years (total return)$4,662$2,584What's insideThe Vanguard ETF has a broad portfolio of 323 holdings, primarily concentrated in the technology sector, with trace exposure to communication and financial services. Its largest positions include Nvidia (NVDA 1.46%) at 16.79%, Apple (AAPL +0.26%) at 15.27%, and Microsoft (MSFT 1.38%) at 9.88%. This fund was launched in 2004 and has a trailing-12-month dividend payout of $0.38 per share.

Conversely, the iShares ETF maintains a much narrower focus, with 30 holdings exclusively within the technology sector. Its largest holdings include Micron Technology (MU 3.43%) at 8.39%, Advanced Micro Devices (AMD 2.15%) at 7.48%, and Nvidia at 7.17%. The iShares fund was launched in 2001 and has a trailing-12-month dividend payout of $1.47 per share. This index-tracking fund is designed to provide targeted exposure to American-based companies that dominate the semiconductor supply chain. Because it targets only chipmakers, it often experiences sharper price swings than more diversified technology peers.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsRight from the jump, I would personally dismiss the difference in expense ratios as a deciding factor when considering a potential investment. They're honestly not that far apart, and the massive returns SOXX has put up over the past one- and five-year time frames more than compensate for its slightly higher price. As Warren Buffett once said, "Price is what you pay. Value is what you get."

To me, the rest is kind of academic. Sure, SOXX has way fewer holdings than VGT, which raises concerns about diversification. But presumably if you are buying an ETF that very specifically drills down on chipmakers, you're not exactly going in blind. (This particular ETF head-to-head is not quite an apples-to-apples comparison.) And even at a glance, it's evident VGT has elevated concentration risk. Despite having more than 300 positions, the Vanguard ETF's top three holdings account for 42% of the portfolio. (SOXX's top three stocks make up roughly 23% of the fund.)

I know which ETF looks better to me. Past performance is no indication of future results, of course. And SOXX's narrow focus means when things get hairy for chipmakers, you're going to see the impact in your portfolio. Stocks of companies in the same sector often move in sympathy; if Micron releases a disappointing quarterly report and shares drop, AMD is likely to sink, too. So it's worth keeping that in mind.

Erin Kennedy has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Micron Technology, Microsoft, Nvidia, and iShares Semiconductor ETF. The Motley Fool has a disclosure policy.

© Ja Crispy / Shutterstock.com

CNBC’s Dominic Chu opened Tuesday’s market coverage with a familiar tape pattern that has not shown up much in 2026. “The tech sell-off that began Monday building momentum this morning after memory chip related shares tanked on Asian markets overnight,” Chu told viewers, and damage in U.S. premarket concentrated exactly where expected. The NASDAQ-100 proxy QQQ was off 2.57% intraday, which on a base this elevated is a real day.

The memory trade snaps after a historic run Micron Technology (NASDAQ:MU | MU Price Prediction) was the epicenter. “Micron picked up where Asian stocks left off, falling more than 10% in early trading,” Chu said, and the tape confirmed it with a 10.53% intraday drop from $1,211.38 to $1,083.84. MU stock is up 230% year to date and 716% over the past year. This is a setup that invites violent unwinding on any whiff of cyclical doubt. The company just printed a 39.74% EPS beat on $23.86 billion in revenue and guided next quarter to $33.5 billion in revenue with roughly 81% gross margin, numbers detailed in its Q2 FY26 release.

With a forward P/E of 11x and analyst target of $945.60, the selloff looks like a positioning unwind. Retail noticed. Reddit’s r/wallstreetbets traffic on Micron peaked at an activity score of 44 during the 6pm ET selloff hour Monday, with one post titled “I just suck at this game” drawing 145 upvotes.

Storage and chips drag in sympathy Seagate Technology (NASDAQ:STX) fell 6.31% from $1,094.04 to $1,025.01, giving back a sliver of a 241% year-to-date gain built on HAMR adoption. Furthermore,  Intel (NASDAQ:INTC) participated in the bleed despite a recent positive Q1 earnings report. The report showed Data Center & AI revenue up 22% to $5.05 billion and the new Xeon 6 selection as host CPU for NVIDIA’s DGX Rubin NVL8.

In addition, Advanced Micro Devices (NASDAQ:AMD) slid 4.77% to $525.32, a modest pullback against a 157.58% year-to-date advance and Lisa Su’s commentary that Meta will deploy up to 6 gigawatts of Instinct GPUs starting with MI450.

Oracle’s headcount surprise Oracle (NYSE:ORCL) had its own problem. “Oracle shares down 4% after revealing in a regulatory filing that it has cut 21,000 jobs, or about 13% of its global workforce over the past year,” Chu noted. The disclosure lands awkwardly against remaining performance obligations of $638 billion, up 363% year over year, and capital expenditures of $55.7 billion on a trailing four-quarter basis documented in Oracle’s latest filing.

Moreover, Free cash flow now sits at negative $23.7 billion. The market read 21,000 job cuts as cost-discipline anxiety inside a company funding the largest cloud buildout of its history. Shares were already down 9.63% year to date before Tuesday.

IBM bucks everything The contrarian winner was International Business Machines (NYSE:IBM). “One bright spot in the larger tech sell-off is IBM. It’s up almost 5% after an upgrade to overweight by JPMorgan Chase,” Chu said. The tape delivered, with shares climbing 5.44% from $252.22 to $265.93. IBM’s generative AI book of business has gone from $6 billion in Q1 2025 to more than $12.5 billion by Q4 2025, and Q1 2026 marked the fourth consecutive EPS beat at $1.91 versus $1.81 expected.

Mainframe is the unlikely engine. IBM Z revenue surged 51% in Q1 with Infrastructure segment profit margin expanding to 15.8% from 8.6%. With a beta of 0.665 and a forward P/E of 20x. Therefore, IBM might be the tech name that holds up when the index is having one of these days. CEO Arvind Krishna framed it on the Q1 call. “AI continues to be a tailwind for our global business,” he said, and Tuesday was the first session in a while where Wall Street decided to pay for boring AI revenue over the parabolic kind.

The whole episode reads as rotation. Memory had moved too far too fast. Oracle’s restructuring exposed the bill for hyperscale ambition. IBM, dismissed for years, looks suddenly like the version of tech exposure that survives a 3% NASDAQ down day in positive territory.

The Dow Jones Industrial Average (^DJI +0.41%) kept its modest winning streak alive on Wednesday, edging slightly higher while the S&P 500 (^GSPC 0.17%) and Nasdaq Composite (^IXIC 0.68%) tagged along with even smaller gains. The moves grew larger by noon, but not by much.

The indexes weren't the big story today. The real action was in commodities.

Oil tumbled below $70 per barrel for the first time since the Iran conflict began in late February, and gold dropped nearly 3%.

^DJI data by YCharts

Oil falls to pre-war levels U.S. crude returned to prices not seen since the Iran conflict began as tankers began transiting the Strait of Hormuz again. The United States Oil Fund (USO 4.28%) fell 4%, extending a sharp decline that began when the U.S. and Iran announced a 60-day framework for final negotiations last week.

President Trump claimed Iran had promised no tolls on Hormuz traffic. Whether that holds remains to be seen, but oil markets aren't waiting around to find out.

Gold joined the sell-off. The SPDR Gold Shares (GLD 3.19%) fund fell more than 2.5% as investors decided they didn't need quite so much disaster insurance after all.

Image source: Getty Images.

The stabilizing Iran situation didn't exactly rub off on Wall Street at first. The three top indexes were up by roughly 0.4% at 10:30 a.m. ET, but a sudden jump followed a few minutes later. The move came as Amazon (AMZN +1.24%) rose 3%, boosted by a makeover of its Zoox robotaxi product.

Then there's the big Dow Jones tidbit. The tightly moderated list of 30 elite American stocks will add Alphabet (GOOG 0.90%) (GOOGL 0.86%) as a member on Monday morning, replacing telecom giant Verizon Communications (VZ 1.96%). Alphabet's stock is up roughly 2% on the news, while Verizon took a 2% haircut. Hardly earth-shaking moves, but the index will indeed look significantly different next week. Alphabet has been on the outside looking in for ages.

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The waiting game There are few market-moving financial reports in the doldrums between two earnings seasons, but memory chip giant Micron Technology (MU 3.43%) will make some news tonight. With an off-kilter fiscal year that doesn't end on Dec. 31, but on the Thursday closest to Aug. 31, the company is due for a third-quarter checkup after Wednesday's closing bell.

Micron's stock has soared 712% over the last year, but also trades 14% below Monday's intraday peak. It's volatile stuff, and the market reaction to this trillion-dollar stock's report should move the Nasdaq Composite and S&P 500 indexes tomorrow. In what direction, I can't say. Micron's shares trade at a massive 20 times trailing sales but just 8.6 times forward earnings estimates, setting it up for volatility in both directions.

Thursday morning's PCE inflation report looms larger, though. Economists expect a 4.1% reading, more than double the Fed's 2% target. Rate-hike expectations have doubled in two weeks, and every decimal point will matter.

HomeStock IdeasQuick Picks & Lists

SummaryGlobal data center capacity could nearly double by 2030, driven by surging AI demand and rapid cloud expansion.Goldman Sachs expects hyperscaler AI spending to surpass $1 trillion in 2027 as workloads require more compute, memory, storage, and connectivity.Micron's earnings could serve as an indicator of data center growth, with some of the largest beneficiaries found inside the rack, including providers of chips, storage, and networking solutions.SA Quant identified five Strong Buy stocks well positioned to benefit from the AI data center boom.I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income. Dragon Claws/iStock via Getty Images

Micron Q3 Earnings In Focus: AI Data Center Bellwether While the surge in AI data center spending may boost a broad range of industries, some of the largest beneficiaries can be found inside the rack – such as providers of semiconductors, memory, storage, and optical networking

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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. 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 that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein 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.

Baird Investment Strategist Ross Mayfield recently appeared on CNBC to push back against the prevailing narrative that the memory cycle has been permanently rewired by AI demand, framing the bull case for Micron Technology (NASDAQ:MU | MU Price Prediction) as a position-management problem rather than a definite outcome. His warning comes on a charged day, with Micron reporting fiscal Q3 2026 earnings tonight, June 24, after the market closes. The stock fell roughly 13% on Wednesday as traders reset expectations ahead of the report.

Mayfield’s core argument is that memory remains structurally cyclical, and price matters. It is a seller’s market today, but if elevated DRAM and HBM prices are expected to persist deep into 2027 and 2028, the largest buyers have both the capital and the motivation to engineer their way around Micron’s pricing power. He pointed to companies like Google and Broadcom pursuing compression software and custom-built silicon, and Amazon exploring in-house designs, as evidence that hyperscaler capex can be redirected when memory becomes a constraint rather than a commodity.

The Setup Mayfield Is Worried About Mayfield characterized memory names as up roughly “1,000%” in a year on air. Micron closed at $1,051.77 on June 23, 2026, against $121.78 a year earlier, a 763.64% one-year move. Year-to-date, Micron is up 268.68%, and over five years, the stock has returned 1,238.55%. The market cap now sits near $1.37 trillion, with a trailing P/E around 57 and a forward multiple near 11.

In fiscal Q2 2026, Micron reported $23.86 billion in revenue, non-GAAP EPS of $12.20, and a GAAP gross margin of 74.4%, up from 36.8% a year earlier. Management guided Q3 to revenue of $33.5 billion plus or minus $750 million and a gross margin of approximately 81%. CEO Sanjay Mehrotra told investors that “In the AI era, memory has become a strategic asset for our customers” as the board approved a 30% dividend increase.

Why Margins Are Important for the Industry Mayfield’s core point: an 81% gross margin guide is the kind of number that invites competition. Micron’s Cloud Memory segment posted a 74% gross margin and a 66% operating margin in Q2, with $7.75 billion in revenue.

Hyperscalers paying these prices have a strong incentive to fund alternatives. Google’s TPU roadmap, Amazon’s Trainium silicon, and Meta’s MTIA program already lean on architectural tricks that reduce HBM dependency per training run. Broadcom continues to ship custom ASIC programs for the same buyers. Memory demand remains intact, but this dynamic caps how long suppliers can price as if memory were uniquely scarce.

The historical pattern reinforces the caution. Just two fiscal years ago, Micron was reporting negative EPS through the 2023 trough. The recovery has been steep: $1.56 in Q3 FY2025, $4.78 in Q2 FY2026, and $12.20 in Q3 FY2026. Order books are reportedly extending into 2027, but Mayfield’s question is what 2027-2028 capacity and pricing look like once new fabs ramp and customer workarounds mature.

Key Takeaways for Micron Mayfield’s warning is that Micron’s extraordinary profitability today may encourage the world’s largest technology companies to build alternatives. Micron’s earnings report tonight will help determine whether AI-driven demand remains powerful enough to outweigh that risk.

Futurum's Brendan Burke sees stronger growth for Micron (MU) that investors aren't pricing in. He believes revenue from data center will exceed expectations and points to Micron's "full stack" technology as a long-term benefit.

12:10pm: More pain for gold Commodities are under pressure today with both oil and gold sliding sharply, and Chris Beauchamp at IG noting that gold’s run above $4,000 has ended as it posts its biggest pullback in four years.

"The parabolic move of late 2024, through 2025 and on into 2026 has firmly come unstuck," Beauchamp wrote Wednesday. 

"The bigger the party, the bigger the hangover, and gold is still working off its own exuberance. 2022’s selloff took longer, but we have to go back to the distant days of 2013 to find a bigger percentage loss.

"As the dollar keeps strengthening, there is more pain to come for gold.”

11:00am: Markets enter risk reset Linh Tran, market analyst at XS.com, said the recent pullback in US equities reflects more than routine profit-taking, as investors reassess growth-stock valuations amid persistent macroeconomic headwinds.

According to Tran, elevated Treasury yields, a strong US dollar and the Federal Reserve's hawkish stance have increased pressure on technology and semiconductor shares, which are particularly sensitive to higher capital costs.

“The fact that some defensive sectors, such as consumer staples, continued to perform positively suggests that capital is not leaving the market altogether, but is instead being reallocated from overheated segments into more stable areas,” Tran said.

Tran noted that the decline still appears to be a short-term correction rather than the start of a broader downturn, as investors rotate into defensive sectors. Looking ahead, Tran said the S&P 500 could face further pressure and potentially test support near 7,200 if weakness in technology stocks persists, though a rebound in megacap tech shares could turn the selloff into a healthy market rebalancing rather than a major trend reversal.

10am: Stocks open slightly higher US stocks have opened modestly higher, with the S&P 500 up 0.3%, while the Dow Jones and Nasdaq have inched up 0.2% in early trading.  

Healthcare and life sciences stocks are topping the S&P, with IQVIA up 6.6%, Charles River Laboratories gaining 5%, followed by Bio-Techne, Danaher and Agilent.

Consumer and travel names were also in demand, led by homebuilding names Builders FirstSource up 8.9%, PulteGroup gaining 7.1%, Lennar rising 6.8% and DR Horton adding 6.6%

The rally in homebuilding was despite weaker-than-expected US new home sales data.

Travel names were also strong, led by Booking Holdings, Expedia, Royal Caribbean, Carnival and Airbnb.

The biggest trend is a tentative stabilisation in mega-cap tech, but the AI supply chain remains under pressure ahead of Micron's results.

Nvidia, Microsoft, Amazon, Alphabet and Meta were all modestly higher, suggesting investors are buying the broader platform and software winners.

However, Micron fell 1.3%, AMD dropped 1.8%, Intel lost 1.3%, and chip equipment makers Applied Materials and Lam Research were also weaker, indicating lingering concerns around AI spending and semiconductor demand.

Elsewhere, falling oil prices continued to weigh on energy stocks, with Exxon down 1.8%, while banks remained out of favour as JPMorgan slipped 1.1%.

Chevron, IBM, Goldman and soon-to-be-demoted Verizon were the biggest drags on the Dow. 

8.05am: Nasdaq tech stocks expected to stabilise Wall Street stocks are expected to make a steadier start on Wednesday after a sharp technology-led sell-off in the previous two sessions, with investors now focused on Micron's earnings for clues about the health of the artificial intelligence boom.

Nasdaq and S&P 500 futures were pointing 0.6% and 0.3% higher, although both had pared earlier gains. Futures for the Dow Jones edged 0.15% higher after earlier trading in negative territory.

This potential rebound comes a day after a bruising session, when the Nasdaq plunged 2.2% to 25,587, shedding over 850 points since the start of the week as chipmakers and AI-linked stocks tumbled. The S&P 500 fell 1.4% to 7,365 on Tuesday, while the Dow Jones slipped 0.1% to 51,667.

Of the 22 biggest Nasdaq 100 fallers, around 18 were directly involved in chips, chip manufacturing equipment, semiconductor components or AI hardware, with the 'Magnificent 7' tech giants sinking back to their lowest since April, down 3% this year.

The sell-off came despite stronger-than-expected US economic data and easing energy prices. June flash PMI data showed the US economy expanding at its fastest pace in five months.

Energy prices continued to fall on Wednesday, with WTI crude sliding 2.9% to just over $71 a barrel for the first time since March 3 as concerns over disruption in the Strait of Hormuz continue to fade.

The US dollar has climbed to its highest level in more than a year as investors reassess the outlook for US interest rates under new Fed Chair Kevin Warsh, with the dollar index (DXY) breaking above 101.6 level, the highest since March last year.

Gold was also under the microscope, down another 1.7% to levels last seen in November at around $4,050 an ounce. 

Market attention is now squarely on Micron, which reports after the closing bell.

Slatestone Wealth chief market strategist Kenny Polcari called it "the most important report of the quarter", saying investors want proof that AI infrastructure spending remains intact.

Elsewhere, SpaceX confirmed pricing for its first bond offering as a public company after upsizing the deal to $25 billion from its initial target of $20 billion.

Also overnight, it was revealed that Alphabet will replace Verizon in the Dow Jones index.

Investors will also be watching new home sales and building permit data later today for fresh clues on the health of the US housing market.

South Korean memory chip giant SK Hynix said on Wednesday that it plans to raise up to $29.4 billion through a US stock market listing, potentially marking the largest American Depositary Receipt offering ever and underscoring investor appetite for artificial intelligence-linked stocks.

If completed at the upper end of the proposed range, the offering would surpass Alibaba's $25 billion US debut in 2014 and become the largest US listing by a Korean company.

The listing comes at a time when SK Hynix has emerged as one of the biggest beneficiaries of the AI boom.

The company, a major supplier of high-bandwidth memory chips used in Nvidia's AI processors, is now valued at about $1.2 trillion.

Its shares have surged more than 280% this year and recently overtook Samsung Electronics to become South Korea's most valuable listed company.

It is only the second Korean company after Samsung to cross the $1 trillion market capitalisation threshold.

Analysts say the company's decision to list in the US is aimed at narrowing the valuation discount historically attached to Korean equities and positioning SK Hynix directly alongside global semiconductor peers such as Micron.

A Seoul-based semiconductor analyst told TechCrunch in March that the US listing could help address a long-standing valuation gap.

"SK hynix's US listing could help close a long-standing valuation gap with global peers. Despite having comparable or in some areas stronger production capacity than US-based chipmakers, the Korean company has historically traded at a discount, partly due to its primary listing in Korea."

Analysts believe the move could also support valuations of SK Hynix's Korea-listed shares.

"The most attractive benefit for investors is that SK Hynix will trade on Nasdaq alongside rival Micron, giving the company an opportunity to be re-rated in the US market," said Ryu Young-ho, senior analyst at NH Investment & Securities.

"That could also be reflected in its Korea-listed shares as investors increasingly link the two valuations."

CLSA Senior Analyst Sanjeev Rana said expectations surrounding the US listing have already contributed to the stock's rally.

"If they can get at least a valuation multiple similar to Micron, for example, then the local shares also need to reflect that, so that kind of expectation is there," Rana said in a Reuters report.

"I wouldn't be surprised if this rally continues."

The listing also carries broader strategic implications.

By debuting on Nasdaq, SK Hynix will gain access to deep pools of capital and become part of a market that increasingly views memory chips as critical AI infrastructure rather than cyclical hardware products.

The move could also trigger a wave of passive investment flows, as technology-focused exchange-traded funds and index funds that track US benchmarks would be required to add SK Hynix shares to their portfolios.

SK Hynix said the proceeds from the ADR listing will be invested entirely into expanding manufacturing capacity.

The company plans to use the funds to construct new chip fabrication plants in South Korea and purchase advanced semiconductor manufacturing equipment, including extreme ultraviolet scanners produced by Dutch equipment maker ASML, whose shares rose 1.1% on Wednesday.

The spending plans reflect expectations that demand for high-end memory chips used in AI data centres will remain robust over the coming years.

The listing may also increase competitive pressures on Micron.

First, since SK Hynix plans to use the entire amount raised to expand manufacturing capacity and acquire new equipment, higher production volumes could strengthen its competitive position and potentially allow it to lower prices.

Second, the ADR listing gives global investors another way to gain exposure to the memory chip industry.

Some investors may diversify their holdings across both companies or rotate funds out of Micron and into SK Hynix.

MU shares have gained 269% this year despite a 13% decline on Tuesday, when concerns about the sustainability of aggressive AI spending triggered a broader selloff in semiconductor stocks.

Micron (MU) shares have climbed over 100% since its last quarterly earnings as investors pile into the stock due to insatiable demand for memory chips. Rick Ducat highlights trends in the stock chart as the red-hot memory trade experiences strong volatility.

That’s because Micron has become one of the most important suppliers in the artificial intelligence supply chain.

This Isn’t Just A Micron Earnings ReportWall Street will certainly be watching revenue, earnings and guidance. But investors may be paying even closer attention to commentary surrounding high-bandwidth memory, or HBM.

HBM has emerged as one of the most critical components inside modern AI servers. The technology works alongside Nvidia’s AI accelerators, helping process and move enormous amounts of data needed to train and run large language models.

In simple terms, no HBM means no cutting-edge AI system. As demand for AI infrastructure has exploded, Micron has become one of the biggest beneficiaries.

The Real Question Is AI SpendingInvestors aren’t just looking for signs that Micron is executing well.

Strong HBM demand, improving pricing and bullish commentary about future orders would suggest that hyperscale customers continue to invest heavily in AI data centers.

That would be welcome news for Nvidia, whose growth story remains heavily tied to ongoing AI spending.

On the other hand, any signs of slowing demand could raise questions about whether the AI buildout is beginning to moderate.

Why Nvidia Investors Are WatchingNvidia has become the face of the AI revolution, but Micron sits closer to the underlying infrastructure. While Nvidia sells the processors, Micron helps provide the memory required to make those systems work.

That gives Micron’s management team a unique vantage point into one of Wall Street’s most important themes.

As a result, Wednesday’s earnings report could serve as more than just an update on Micron’s business. It may become one of the market’s first real-time checks on the health of the broader AI spending boom.

And for Nvidia investors, that could make Micron’s earnings one of the most important reports of the quarter.

Image via Shutterstock

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Key Takeaways Micron Earnings Report After Today's CloseNew Home Sales for May Report After the OpenNew Housing Act Awaits President's Signature Wednesday, June 24th, 2026

Pre-market futures are mostly up at this hour, but off earlier morning highs. Global concerns about AI spending have once again dominated conversations on Wall Street over the past week or so, and after 20%+ growth in the tech-heavy Nasdaq year to date, the June swoon has taken profits and brought down gains here in the final weeks of the first half of calendar 2026.

Earnings results for one of the more recent trillion-dollar AI companies, Micron (MU - Free Report) , are due after today’s close. The Zacks Rank #1 (Strong Buy) company is up +3% in early trading this morning, but roughly flat over the past month and -4% in the days leading up to the print. Expectations are typically lofty for one of the top AI firms, with +998% projected earnings gains on +292% in revenues for its fiscal Q3 performance.

Micron is working on a string of 12 straight earnings beats, with the trailing four-quarter average around +21%. So +1000% earnings growth year over year would not be too big of a surprise. That said, the share price has exploded to $1100 per share. A year and a half ago, Micron was trading under $100 per share.

Homebuilding Takes Center Stage After Months in Crisis
In a bipartisan bill passed by both houses of the U.S. Congress — when’s the last time we said that? — the 21st Century Road to Housing Act demonstrates lawmakers addressing the struggles in the domestic housing market. With a deficit of between 4-7 million homes and demand pushing prices ever higher, including +6% per month in places like Chicago, we see the housing formation on which much of the economy relies wallow at crisis levels.

The Road to Housing Act aims to cut both time and costs to create new housing, reducing red tape and staunch requirements for building. It also will give local jurisdictions more flexibility to convert unused structures into multi-family housing units, with monetary incentives included for communities committed to increasing housing supply. The bill is scheduled to be signed into law by President Trump today.

After today’s opening bell, New Home Sales for May are due. Expectations are for a bump of +10K from the previous month to +632K seasonally adjusted, annualized units, which would remain on the low end of the range over the past 10 years. Compare this with the recent high — +748K in November of 2025 — and low: +576K in January of 2026.

The tally for April demonstrated a downturn of -6.2% in new home sales, as mortgage rates stayed aloft and home prices continued to climb, particularly in the big cities. The survey saw a 9.4 months’ supply of new housing, totaling 489K units. The median price for a new home last month, nation-wide, was $422,500.

KB Home (KBH - Free Report) , in its fiscal Q2 report Tuesday afternoon, saw a +2% beat on revenues but a -0.99% miss on earnings. These were off expectations of -71% earnings growth year over year and -28% on revenues. Homebuilder Lennar (LEN - Free Report) and Pulte Home (PHM - Free Report) report earnings roughly four weeks from now.

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Micron Technology Inc will release its third-quarter earnings after the markets close on Wednesday. 

Despite fears of an AI bubble, Wall Street predicts positive results. Micron could report $35.5 billion in revenue—a 281% jump year-over-year (YOY), according to a Bloomberg analyst consensus cited by Yahoo Finance. 

Its DRAM (memory) and NAND (storage) revenues are expected to grow 288% and 256% YOY, respectively. 

Micron is also predicted by Bloomberg’s analysts to have earnings per share of $20.39, about a 967% increase YOY. However, consensus estimates cited by CNBC expect EPS to range from $20.17 to $20.42.

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Micron had a successful yearThe earnings report will come just two days after Micron’s shares (Nasdaq: MU) reached a new all-time high of $1,213.56. The stock price is up over 722% YOY and $268 year-to-date (YTD).

Shares of Micron have occasionally dropped alongside those of other chip manufacturers due to fears about over-investment in AI and the infrastructure that powers it.

Just yesterday, shares dropped more than 13% in response to concerns about a stock bubble in South Korea, following a large selloff and losses for both Samsung’s and SK Hynik’s shares. 

Explore Topicschipsmarketssemiconductor chipsstocksTaiwan Semiconductor Manufacturing Company

@CharlesSchwab's Nathan Peterson turns to the S&P 500 (SPX) price action and explains why he's "cautious" as concentrated positioning ramps up in the index. He tells investors to brace for Micron's (MU) earnings as the stock seeks to jump a high bar.