Micron klesl o 7,7 % poté, co Samsung oznámil silné výsledky a zároveň uvedl, že buduje masivní továrny na polovodiče, které mohou zvýšit nabídku pamětí.
After starting the week strong, Micron (MU 5.87%) stock tumbled an unlucky 7.7% through 10:55 a.m. ET.
Blame Samsung for that.
Image source: Micron.
Korea sends the semi market South South Korean technology giant Samsung reported its Q2 2026 earnings last night. The news was objectively good -- sales up 28% sequentially, and more than double last year's Q2 revenue. Operating profit surged 19-fold, rising to $58.4 billion.
And yet Samsung stock sold off 7% today. Why?
The results beat analyst forecasts, but in a quirk of this overheated artificial intelligence-fueled stock market, investors expected Samsung to beat expectations. This triggered a "buy the rumor, sell the news" phenomenon in which investors sold Samsung stock despite its numbers being better than "expected" -- and despite Samsung confirming computer memory prices are still rising, and its profits are continuing to climb.
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What this means for Micron stock So how does all of this affect Micron, and why is it sparking a sell-off today?
Well, consider: Samsung is the world's biggest supplier of DRAM computer memory, used to make high-bandwidth memory (HBM) used in AI data centers. It's got a 38% share of the global market. SK Hynix, No. 2 in DRAM, is No. 1 in HBM with more than a 50% market share. Micron makes both NAND and DRAM memory, and its DRAM share is smaller -- about 22%, still enough for third place.
If things stay as they are, with prices rising and demand insatiable, Micron should do quite well. The problem is alongside announcing powerful profits, Samsung also said that it is building "massive semiconductor fabrication plants" to add supply to the market -- growing its market share, eating away at Micron's, and potentially closing the supply demand gap in the process.
This, in a nutshell, is why Micron stock is selling off today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
SK Hynix plánuje vstup na Nasdaq a může získat až 28 miliard USD nového kapitálu na expanzi a nákup zařízení. Firma ovládá asi 60 % trhu s HBM, který je klíčový pro AI.
SK Hynix's Nasdaq listing can not only reset the AI memory trade but also accelerate it. The company is weaponizing Wall Street to ensure it retains its leadership position in the hottest market since the AI boom started booming.
With control of approximately 60% of the high-bandwidth memory (HBM) market, which is critical for advanced computing, the opportunity is for investors to gain share in a leading memory pure-play at a discount to its peers. Estimates have SK Hynix Korean listing trading at approximately 8x forward earnings compared to Micron’s NASDAQ: MU 13.5x, suggesting an easy double-digit upside immediately upon listing.
While the upside potential for SK Hynix's U.S. listingis robust, there are a few things for investors to consider, the primary one being volatility. The listing will include the issuance of new shares, representing approximately 2.5% of the existing share count, which will provide a slight headwind for price action.
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The offset will likely be massive institutional backing, with several high-profile firms committing to large stakes. Institutional backers include Situational Awareness Partners, an investment firm founded by a former OpenAI researcher, and Coatue Management, a U.S.-based firm focused on technology.
SK Hynix Throws Down the Gauntlet, Micron Will RespondSK Hynix's U.S. listing is expected to raise as much as $28 billion in new capital. The money will be used to accelerate expansion plans and buy new equipment, both critical to meeting demand and maintaining product timelines.
The company is strengthening ties with NVIDIA NASDAQ: NVDA, ensuring it can deliver next-gen products when needed, including HBM4. HBM4 is critical to AI, as it breaks down the memory wall by enabling skyrocketing bandwidth with low power consumption, doubling the speed of HBM3 versions, and offering approximately 75% more memory capacity. The impact on AI will be tremendous.
Catalysts for SK Hynix's share price include the robust demand for HBM products, which are sold out through 2027, and pricing power. HBM memory pricing is up by high double digits, underpinning growth for SK Hynix and Micron, and is expected to remain hot for the foreseeable future. SK Hynix removed pricing caps that had been in place, allowing it to capture maximum upside while the HBM shortage persists.
Micron Technology Today
MU
Micron Technology
$922.66 -62.09 (-6.31%)
As of 02:45 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$103.38▼
$1,255.00Dividend Yield0.07%
P/E Ratio20.90
Price Target$1,263.76
Micron, however, is not sitting idly by, allowing SK Hynix to gain share. It is actively expanding its own manufacturing capacity and HBM4 technology, including a major HBM4 hub in Japan, and realigning its die process to more closely align with NVIDIA standards so it can capture a larger share.
The likely outcome is that Micron breaks SK Hynix's near-monopoly with NVIDIA while cementing its position in the industry. Micron is also capitalizing on its unique position as the U.S.'s only domestic-based memory manufacturer, expanding facilities in Idaho and New York.
Micron May Experience Headwinds—Sell-Side Data Says Buy the DipWhile Micron’s outlook is equally bullish, there is potential for its share price action to lag SK Hynix, at least in the near- to mid-term. The risk is that investors will take profits and reduce their holdings of MU in order to shift capital into SK Hynix. In this scenario, the best-case is that MU’s stock price moves sideways within a range near existing highs, while the worst-case is that it experiences a more robust correction than it already has. Down more than 20% from its post-earnings highs as of early July, Micron’s share price could shed another 30% before hitting solid support.
The caveat is that sell-side interest, as reflected in the analysts and institutional data, remains very bullish on Micron, with a triple-strength tailwind in place. MarketBeat data reveal 38 analysts covering the name, a 92% Buy-side bias in the Buy consensus, and more than 35% upside potential relative to early-July support targets, with coverage rising, sentiment firming, and price targets trending higher over the near-, mid-, and long-term. It is not the consensus figures that matter but the trends, which are leading to the high range and suggest more than 100% is still ahead.
Micron’s stock price action reflects market strength, with a bullish MACD convergence. The MACD, or moving average convergence/divergence, measures market strength and momentum and, in this case, shows a strong, strengthening market more likely to retest its recent highs and move higher than to continue moving lower. The only question is the timing, and that may be by year’s end. Upcoming catalysts include Micron’s fiscal Q4 earnings release in September, along with reports from NVIDIA and Advanced Micro Devices NASDAQ: AMD, which are expected to confirm that AI demand continues to grow.
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Micron Technology očekává ve 4. čtvrtletí tržby 50 miliard USD po 41,5 miliardy USD ve 3. čtvrtletí. Firma říká, že trh s paměťmi zůstane napjatý nejméně do roku 2027.
Micron Technology (MU +1.18%) has been a great stock to own for the first half of 2026. It has risen around 240%, easily ranking it among the best-performing stocks in the market. After a run-up like that, before taking a position in the stock, investors must ask themselves what catalyst will sustain the stock's incredible momentum.
Well, Micron's management team delivered that news to shareholders a few weeks ago during its earnings announcement, and it could easily propel Micron to new heights.
Image source: The Motley Fool.
The memory chip crunch isn't going to wane anytime soon Micron makes memory chips, which are vital for nearly all computing devices. It makes both NAND and DRAM memory, which have different use cases. Both are heavily used in data centers, and Micron and its peers in the memory chip industry weren't ready for the surge in demand. As a result of spiking demand and limited supply, prices have risen. Consumers have felt this with rising PC prices and potentially rising phone prices. While consumers may be feeling the squeeze, Micron isn't, as it's a major beneficiary.
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Its revenue has soared alongside chip prices. In the second quarter of Micron's fiscal year 2026 (ending Feb. 26), Micron generated $23.9 billion in revenue and gave a bold projection that its Q3 revenue would be around $33.5 billion. For Q3 (ending May 28), Micron blew well beyond that projection, delivering $41.5 billion in revenue. For Q4, Micron dropped the bombshell that it expects a whopping $50 billion in revenue. That's a major spike in just a handful of quarters, and it's the driving force behind Micron's rise.
But here's the thing: Micron's stock still isn't all that expensive.
MU PE Ratio (Forward) data by YCharts
At 14 times forward earnings, Micron still trades at a discount to its peers because the market worries that memory demand will drop in the near future and that all of its gains will go with it. While that's a valid concern, Micron's management informed investors that it expects a "tight" memory market through at least 2027. As for now, the memory chip crunch remains active, and Micron will thrive in it.
Despite its massive gains already, I think investors are OK taking a position in the stock right now, as long as they can monitor the AI situation closely to see whether memory chip supply remains tight. If it is, Micron is an excellent stock to buy and hold. If there are signs of relief, then it's time to get out.
Micron klesl zhruba o 22 % z rekordního maxima, ale i po propadu je letos stále výše o více než 250 %. Trh řeší hlavně valuaci a vybírání zisků po silné AI rally.
Micron stock NASDAQ:MU has fallen roughly 22% from its record high, sliding to around $985 on Monday after touching an all-time high near $1,255.
The drop looks jarring because the memory-chip maker only recently posted record quarterly results and upbeat guidance.
The selloff has shifted the debate from Micron’s earnings strength to valuation risk, with investors weighing an overheated AI chip trade against a memory market that remains unusually tight.
The latest pullback does not appear to be a Micron-specific blow-up, but part of a broader reset across the AI hardware trade after a blistering rally in memory and storage stocks.
Meta’s reported move to build a third-party AI compute business rattled investors because it was read as a possible sign that some hyperscalers may eventually have excess capacity to sell.
That hit sentiment across chipmakers and AI infrastructure names, not just Micron.
The analyst linked MU’s drop to Meta’s cautious data-centre signals and broader worries about whether the memory boom can sustain its momentum.
The selling also came after a huge run.
Even after the pullback, Micron remains up more than 250% year-to-date. That makes the 22% fall look less like a collapse and more like profit-taking after a powerful AI-driven run.
Hedge-fund positioning may have amplified the move.
As per Goldman Sachs, US hedge funds had sold technology hardware stocks for a fourth straight week ahead of earnings season, reflecting caution after sharp semiconductor gains.
Analysts remain broadly constructive because the fundamentals still look strong.
Micron reported record fiscal third-quarter revenue of $41.5 billion, up from $23.9 billion in the prior quarter and $9.3 billion a year earlier.
Non-GAAP net income came in at $28.9 billion, or $25.11 per diluted share, while operating cash flow reached $25.4 billion.
Bank of America’s Vivek Arya raised his Micron price target to $1,500 from $950 while keeping a Buy rating.
His bullish view reflects the idea that AI infrastructure is shifting from a pure demand story to a physical bottleneck story, where memory, chips and power remain scarce.
Citi’s Atif Malik has also stayed upbeat as the analyst raised his target to $1,200 in June, citing better-than-expected memory pricing, strong data-centre demand and constrained supply.
UBS is even more bullish as analyst Nicolas Gaudois viewed the latest dip as a buying opportunity and kept a $1,625 target, citing persistent memory-industry strength and tight supply.
Still, the buying-window argument is not risk-free.
Michael Burry has reportedly taken a short position against Micron, while questioning whether the stock’s surge reflects AI hype rather than sustainable value.
There is also the classic memory-cycle risk, as today’s shortage can become tomorrow’s glut if rivals add too much capacity.
Samsung Electronics and SK Hynix plan a combined $2.1 trillion in long-term investment, a scale that could eventually pressure pricing if AI demand cools or supply arrives faster than expected.
Samsung Electronics ve druhém čtvrtletí více než zdvojnásobil tržby a vykázal devatenáctinásobný růst zisku, přesto jeho akcie prudce oslabily. Investoři totiž od společností stojících v centru boomu umělé inteligence očekávají stále výraznější překvapení. Analytici přitom upozorňují, že nedostatek paměťových čipů by měl přetrvat minimálně do roku 2027, což Samsungu i jeho konkurentům zajišťuje mimořádně silnou cenovou pozici a rekordní ziskové marže.
Tržby Samsung Electronics se více než zdvojnásobily na 171 bilionů wonů. Zisk ve druhém čtvrtletí narostl 19násobně a převyšuje souhrnný zisk za poslední tři roky. Je to zároveň třetí rekordní fiskální čtvrtletí po sobě. Přesto nezvládl ohromit investory zvyklé na raketová čísla růstu dodavatelů čipů. Akcie proto klesly o více než 10 %, což vedlo k propadu jihokorejského benchmarku Kospi, jenž musel i krátkodobě pozastavit obchodování. Společnost Samsung by měla zveřejnit kompletní finanční výkaz, včetně čistého zisku a rozdělení podle divizí, kolem konce měsíce.
Investoři už do značné míry počítali s vysokými ziskovými maržemi z budování AI infrastruktury po celém světě. „Čísla, ačkoli jsou v absolutním vyjádření mimořádná, nejsou o moc lepší než to, co trh modeloval pro akcie nacházející se v epicentru nejžhavějšího sektoru na celém trhu,“ řekl Adam Crisafulli, zakladatel společnosti Vital Knowledge.
"Velmi příznivé hospodářské výsledky společnosti Samsung se všeobecně očekávaly a trh je do značné míry už zohlednil v ceně akcií, které před jejich zveřejněním posílily," uvedl Albert Yong, řídící partner společnosti Petra Capital Management, která akcie Samsungu vlastní. "Investoři nadále vyjadřují obavy ohledně udržitelnosti rozmachu umělé inteligence a rizika, že velké americké technologické firmy zpomalí výdaje na infrastrukturu pro tuto technologii," dodal.
Analytici očekávají, že nedostatek pamětí potrvá minimálně do roku 2027, což Samsungu a jeho konkurentům SK Hynix a Micron Technology propůjčuje obrovskou cenovou sílu. Prodejní ceny DRAM vzrostly v dubnovém až červnovém čtvrtletí o více než 40 % oproti předchozím třem měsícům, zatímco ceny NAND vzrostly o více než 50 %, uvádí HSBC.
Průměrná provozní zisková marže těchto tří výrobců čipů se v červnovém čtvrtletí pravděpodobně pohybovala kolem 75 % až 80 %, uvádí průzkumná společnost Counterpoint. To může vyvolat obavy z nadměrného zisku ze strany výrobců pamětí a vést k regulačnímu tlaku, pokud situace bude pokračovat, uvádí se ve zprávě.
„Nemyslím si, že trh dostatečně chápe, jak dobrá jsou tato čísla,“ řekl ředitel společnosti Counterpoint Tom Kang. Růst cen pamětí byl ke konci druhého čtvrtletí ještě strmější ve srovnání se začátkem čtvrtletí, řekl. „Boom bude v nadcházejících čtvrtletích rozhodně pokračovat.“
Akcie Samsungu zaostávají za konkurenční SK Hynix, která se více zaměřuje na paměti s vysokou šířkou pásma určené pro výpočetní potřeby umělé inteligence. Letos vzrostl o přibližně 150 % ve srovnání se zhruba 250% ziskem SK Hynix.
Tito dva výrobci čipů hrají klíčovou roli v ambicích Jižní Koreje předběhnout ostatní země a ujmout se vedoucího postavení v oblasti umělé inteligence a jsou pod tlakem, aby zvýšili dodávky pamětí. Obě společnosti plánují postavit dva závody na výrobu čipů na jihozápadě země za celkovou investici 800 bilionů wonů, aby rychle rozšířily svou kapacitu. Korea si klade za cíl do pěti let zdvojnásobit svou výrobní kapacitu pamětí. Samotný Samsung letos plánuje vynaložit více než 70 miliard dolarů na rozšíření výrobní kapacity a výzkum.
Samsung a SK Hynix plánují investovat přes 2 biliony USD do navýšení výroby paměťových čipů, což může omezit nabídku a vyvinout tlak na cenu pro Micron. Výstavba nových kapacit ale potrvá roky.
Micron Technology (MU +1.18%) stock has been on a tear over the past year. Shares of the memory specialist have jumped nearly 8x in a short time, driven by a rapid increase in demand for memory chips that has overwhelmed supply.
The memory supply shortage has been a massive tailwind for Micron Technology's bottom line. The company's earnings have been growing exponentially due to the incredible rise in memory prices. However, Micron's peers, Samsung and SK Hynix, have ambitious investment plans that could significantly reduce the supply demand gap in the memory industry.
That may not be a good thing for Micron stock. Here's why.
Image source: Micron Technology.
SK Hynix and Samsung are the kingpins of the memory industry As reported by Reuters, South Korea aims to double its memory chip production capacity over the next five years. Samsung and SK Hynix are going to play a key role in this expansion, as they have pledged an investment of just over $2 trillion.
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Given that Samsung and SK Hynix are among the world's largest memory chip suppliers, their massive investments could significantly reduce the demand-supply gap. Specifically, the two Korean giants control 67% of the global dynamic random-access memory (DRAM) capacity, according to Counterpoint Research. Their combined share of the NAND flash storage market stands at 47%.
Micron, for comparison, controls 22% of the DRAM market and 13% of the NAND flash market. So, Samsung and SK Hynix can influence the global memory in a big way. This doesn't bode well for Micron, as its pricing power could take a hit if Korean competitors add substantial new capacity. Even analysts are worried that this capacity expansion could create an oversupply, and that could negatively impact memory prices.
Does this mean it is time to book your profits in Micron stock? Not necessarily.
Micron's impressive growth is here to stay Adding new memory production capacity takes time. Building a memory fab can take anywhere between three to five years. So, even if SK Hynix and Samsung accelerate their infrastructure build-out, it will take a few years for them to start producing memory chips from their new facilities. Moreover, Samsung and SK Hynix are likely to monitor memory demand to ensure that they don't end up in an oversupply situation, which has hurt both companies in the past.
Additionally, SK Hynix's chairman believes that the additional capacity won't be enough to address the supply shortage. It is easy to see why that's the case. The high-bandwidth memory (HBM) used in AI chips consumes 3x as much wafer capacity as conventional memory chips. With HBM demand anticipated to increase at an annual rate of 42% through 2033, the ongoing shortage in the console, smartphone, and personal computing (PC) markets is likely to persist.
And as the new capacity comes online, it is likely to be absorbed by the markets where there is currently a major shortage. For instance, smartphone sales are anticipated to decline by 13.9% in 2026, according to IDC. The firm anticipates a 1.1% drop next year before growth resumes in 2028. Higher memory prices have been affecting smartphone sales, so any additional capacity could go toward satisfying pent-up demand in this market over the next couple of years.
So, the structural growth of the memory market due to the advent of AI should ideally prevent a downturn. That's why Micron investors shouldn't worry as the favorable conditions driving its growth are likely to persist.
This is probably why analysts are predicting that the company will clock outstanding earnings growth.
Data by YCharts
Moreover, Micron's price-to-earnings ratio of 23 makes it too cheap to ignore, considering its astronomical growth and sunny outlook. The tech-focused Nasdaq-100 index trades at 35 times earnings, which means Micron is a value stock. Assuming Micron trades at even 25 times earnings at the end of fiscal 2028 and its earnings per share reach $167.92, the company's stock price could jump to $4,198.
That's just over 4x its current stock price. So, investors can continue holding this AI stock in their portfolios, or even buy more, as it could keep skyrocketing.
Marvell se mění z cyklického výrobce čipů na hráče v oblasti AI a většina jeho tržeb už plyne z datových center. Analytici čekají do fiskálního roku 2029 růst tržeb o 41 % CAGR.
Micron's (MU +1.45%) stock surged more than 730% over the past 12 months. That rally was driven by its soaring DRAM and NAND memory chip sales for AI-oriented data centers. Micron was once considered a cyclical company that went through "boom and bust" cycles. That perception changed as the AI market expanded and it recently secured over $22 billion in uncancellable, multi-year, fixed-price contracts through 16 Strategic Customer Agreements (SCAs) with data center giants.
From fiscal 2025 (which ended last August) to fiscal 2028, analysts expect Micron's revenue to surge nearly sevenfold as its EPS increases more than 22 times. Those are incredible growth rates for a stock that trades at less than nine times this year's sales and 13 times this year's earnings, so it could still have plenty of upside potential.
Image source: Getty Images.
Micron is still a rock-solid investment, but it's not the only cyclical chipmaker that is evolving into a high-growth AI chipmaker. Another promising stock is Marvell (MRVL +3.22%), which has rallied more than 250% over the past 12 months and still has lots of room to run.
Why is Marvell becoming a high-growth AI chipmaker? In the past, Marvell mainly produced Wi-Fi, Internet of Things (IoT), and mobile chips for consumer devices. But over the past decade, it stopped producing those cyclical, lower-margin chips and expanded its data center with big acquisitions and new product launches.
Today, Marvell generates most of its revenue from its data center business, which produces high-speed optical connectivity chips, custom application-specific integrated circuits (ASICs) for hyperscalers, Ethernet switches, and data processing units (DPUs) that combine CPUs, networking interfaces, and programmable data acceleration engines.
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As the AI market expands, more companies are upgrading their data centers with Marvell's hardware to handle the latest AI applications. Nvidia (NVDA +0.66%) also invested $2 billion in Marvell earlier this year and more tightly integrated its own GPUs, CPUs, and DPUs with Marvell's custom AI accelerators and networking chips through its NVLink platform. It's also co-developing advanced optical interconnect and silicon photonics solutions with Nvidia to eliminate data-transfer bottlenecks in cloud and AI data centers.
How much higher can Marvell's stock soar? From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect Marvell's revenue and adjusted EBITDA to grow at CAGRs of 41% and 43%, respectively. It might seem a bit pricey at 19 times this year's sales and 50 times its adjusted EBITDA, but its long-term growth potential justifies those higher valuations. So if you're looking for an oft-overlooked AI chipmaker that could replicate Micron's massive rally, Marvell might fit the bill.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Micron uzavřel dlouhodobé smlouvy s 16 zákazníky na zhruba 20 % DRAM a třetinu NAND, aby si zajistil předvídatelnější poptávku a ceny. Rivalové SK Hynix a Samsung mezitím chystají masivní investice do nové kapacity.
Micron Technologies (MU +3.26%) blew away expectations with its most recent earnings report. The company posted record profitability while quintupling revenue year over year.
But perhaps the biggest takeaway from Micron's earnings report was management's disclosure of new strategic customer agreements (SCAs). Micron signed long-term agreements with some of its largest customers, creating more predictable demand and pricing for its chips over the next three to five years.
That's important because Micron's biggest competitors, SK Hynix (KOSE: A000660) and Samsung (SSNLF +0.00%), are about to invest huge sums of money in building out additional capacity. It'll be a major test for Micron's new strategy.
Image source: Micron Technologies.
Micron's biggest risk Memory chips are, in practicality, commodities. The market has seen a surge in demand over the past year as memory has become a bottleneck in artificial intelligence (AI) training and inference. The more memory you can package with a GPU or other AI accelerator chip, the faster it can process data and generate a response.
However, it takes time for Micron and its competitors to build new capacity. As a result, memory chip prices have skyrocketed, leading to massive near-term profits for the chipmakers.
But as new fabs begin producing more chips, the supply-and-demand equilibrium shifts, and prices and profits decline. This creates earnings cycles throughout the industry. The big risk for Micron is that SK Hynix and Samsung build out more supply than Micron does, putting pressure on pricing and leaving Micron with less volume to make up the difference.
Micron's latest solution to the challenge is its SCAs. So far, it's signed 16 customers, representing about 20% of its DRAM volume and one-third of its NAND volume. The contracts are take-or-pay, which gives Micron more revenue predictability and the confidence to build more capacity. Micron says the contracts represent a minimum value of $100 billion over the course of the agreements.
Last year, Micron announced plans to spend $200 billion on new production capacity and R&D. Despite the SCAs, Micron's management didn't announce any plans to spend more. It merely stated they "provide us greater confidence in our capex (capital expenditures) and R&D (research and development) investments."
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The competition just announced massive spending plans The South Korean government recently announced a joint initiative between SK Hynix and Samsung to build a massive facility in southwestern South Korea. The facility will include four new chip fabrication plants with a total cost of about $520 billion. Separately, another $53 billion is being allocated to a new chip packaging facility.
And reports indicate that SK Hynix and Samsung plan to spend a combined 2,000 trillion won (about $1.3 trillion) on new facilities over the next decade. So, the new fabs and packaging plant may be just the start.
As mentioned, it takes years for a new facility to start producing chips, so the impact of the massive spending plans on chip pricing will be delayed. However, with a new pipeline for memory chips set to enter the market by the end of the decade, it could severely limit Micron's ability to negotiate its SCAs. And that could have a meaningful impact on its business going forward.
As things stand, Micron's current agreements account for just a minority of its revenue. The agreements cap the upside at pricing levels from its second quarter, limiting its near-term earnings potential. However, Micron's management expects supply constraints to continue benefiting pricing through 2027.
With the massive capacity build-out set to influence pricing by the end of the decade, Micron's earnings downcycle could be quite severe despite its best efforts to protect itself with long-term agreements. As such, Micron investors should be wary of paying too much for near-term earnings potential.
Micron uzavřel s Fordem dlouhodobou dohodu o dodávkách paměťových a úložných řešení pro výrobu vozů nové generace. Firma zároveň rozšiřuje kapacity pro automobilové paměti.
BOISE, Idaho, July 06, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) and Ford Motor Company today announced a long-term Strategic Customer Agreement (SCA) to strengthen the supply of memory and storage solutions supporting Ford’s next-generation vehicle production.
Micron is increasing output of key automotive memory solutions with capacity expansions designed to support long product lifecycles and ensure sustained supply for critical production programs. These investments are part of Micron’s broader efforts to scale supply responsibly in line with accelerating global demand for memory and storage, supporting the broader automotive ecosystem and strengthening critical U.S. infrastructure.
This agreement is supported by Micron’s ongoing investments to expand and localize manufacturing for automotive customers, including its expansion of advanced DRAM production at its Manassas, Virginia fab.
“Producing the high-volume vehicles of the future in the U.S. will require a resilient supply chain,” said Jim Farley, President and CEO of Ford Motor Company. “We applaud Micron’s commitment to manufacturing in America, expanding its domestic production and investing in a skilled workforce.”
“We are proud to extend our collaboration with Ford to help ensure a reliable, long-term supply of memory and storage solutions,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “As vehicles become more intelligent and data-intensive, the importance of advanced memory and storage continues to grow, making collaboration and long-term supply increasingly important. Through supply assurance, deep technology collaboration, and continued investment in manufacturing capacity, we are helping enable consistent, long-term support for Ford’s next-generation vehicle production as demand for advanced memory continues to grow.”
This SCA is one of the 16 discussed on Micron’s fiscal third-quarter 2026 financial conference call.
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.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the anticipated benefits of the Micron-Ford collaboration. 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 Micron files with the Securities and Exchange Commission, specifically its most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at https://investors.micron.com/risk-factor. Although Micron believes that the expectations reflected in the forward-looking statements are reasonable, Micron cannot guarantee future results, levels of activity, or achievements. Micron is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.
Micron Technology (NASDAQ: MU) is set to pay its next quarterly dividend later this month, with eligible shareholders scheduled to receive $0.15 per share on July 21, 2026.
The dividend remains unchanged from the company’s previous quarterly distribution, reflecting a consistent payout policy despite Micron’s strong share price performance over the past year.
Based on its annualized dividend of $0.60 per share, the stock offers a dividend yield of approximately 0.06% based on its last closing price of $975.56.
Investors holding 100 Micron shares will receive $15 before applicable taxes from the upcoming payment.
MU stock dividend payment schedule. Source: Dividend.com Assuming the company maintains its current quarterly dividend of $0.15 per share, shareholders with 100 shares would earn $60 in annual dividend income before taxes.
To qualify for the July payment, investors had to own Micron shares before the July 6, 2026, ex-dividend date. Shares purchased on or after the ex-dividend date are not eligible for this dividend.
While Micron’s dividend yield remains relatively modest, the company’s investment case continues to be driven primarily by capital appreciation rather than income.
Micron’s impressive 2026 run The semiconductor giant has been one of the best-performing large-cap stocks over the past year as demand for artificial intelligence memory chips continues to accelerate.
Shares have surged more than 700% over the past 12 months and approximately 242% year-to-date, pushing Micron’s market capitalization above $1.1 trillion despite a recent pullback.
MU one-year stock price chart. Source: Finbold The company recently reported record fiscal third-quarter results, with revenue climbing to $41.46 billion, driven by booming demand for high-bandwidth memory (HBM) used in AI accelerators.
Micron also issued strong guidance for the current quarter, forecasting revenue of around $50 billion at the midpoint.
Demand for AI memory remains the company’s key growth driver, with Micron reporting that its HBM production capacity is fully booked through 2026 under long-term supply agreements.
At the same time, Wall Street remains overwhelmingly bullish on Micron’s long-term prospects as AI infrastructure spending continues to expand.
Although the dividend provides a modest stream of recurring income, Micron remains a growth-oriented technology stock, with most investor returns expected to come from earnings growth and potential share price appreciation rather than dividend income.
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Analytici zvýšili cílovou cenu Micron Technology na 1 500 USD, tedy asi o 45 % nad současnou cenu. Firma těží z boomu kolem AI, který žene poptávku i ceny paměťových čipů.
Even with its impressive 740% return over the past 12 months, some analysts believe Micron Technology (MU 5.68%) could still go higher. Three analysts recently raised their price targets for the stock to $1,500, representing a 45% increase from its current price, as of this writing.
Here's why this bull case for Micron stock is rooted in reality and why now could be a good time to buy shares despite their recent volatility.
Image source: Getty Images.
Here's why Micron has a chance of reaching $1,500 Investors have been wondering when the boom in artificial intelligence (AI) might fizzle out and if some stocks are currently in an AI bubble. And while some are certainly benefiting from the technology without having a strong foundation in it, that's not the case for Micron.
Consider the huge AI supercycle currently underway, which is driving sales of its memory processors. This year alone, some of the leading technology companies will have $750 billion in capital expenditures, mostly for AI.
That's a huge amount of AI spending, and it may not slow down anytime soon. Alphabet has already said it will spend up to $190 billion this year and added, "And next year, we expect it to significantly increase compared to 2026."
All of this spending is doing two very important things for Micron: It's driving huge sales of its memory chips and causing its processor prices to skyrocket due to demand.
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The results speak for themselves. Sales rose 345% in the 2026 third quarter to $41.5 billion, and adjusted earnings per share spiked more than 1,300% to $24.67 in the quarter. Management said recently that the run rate for its data center revenue (where sales of its memory chips live) is $100 billion for 2026.
In short, demand is high, allowing Micron to charge more for its memory processors and resulting in skyrocketing profits. So when analysts and investors look at the current data center boom and the company's soaring profits from it, it's not hard to imagine investors continuing to drive up its share price as AI infrastructure investments continue.
Some volatility is inevitable along the way The stock could reach $1,500, but it's also worth noting that some investors are questioning some of the AI spending from tech companies, which has led to market volatility.
Micron stock isn't immune to this, and some investors were disappointed when management didn't raise its full-year AI chip guidance recently, prompting some to sell. If investors continue to take an overly skeptical view of AI spending, it could impact the company's share price in the short term.
But Micron is highly profitable, its sales are expanding, and it's benefiting from a unique demand environment for its memory processors that could last for the next few years. When you add it all together, it's not unrealistic to think the stock could reach $1,500.
Micron ve fiskálním třetím čtvrtletí vykázal zisk 24,67 USD na akcii, ale čtvrtletní dividenda zůstala jen 0,15 USD. Tržby vyskočily o 346 % na rekordních 41,46 miliardy USD.
Every so often, a company's numbers stop making sense next to its soaring profits. Micron Technology (MU 5.68%) is having one of those moments. In its fiscal third quarter (the period ended May 28, 2026), the memory maker earned $24.67 per share on a generally accepted accounting principles (GAAP) basis. Its quarterly dividend, declared the same week, was $0.15 -- the same $0.15 it declared last quarter. A company earning that much cannot keep paying that little forever.
Something has to give.
Image source: Getty Images.
A cash machine, for now The quarter was a blowout in the truest sense. Revenue rose 346% year over year to a record $41.46 billion, and net income reached $28.24 billion, powered by demand for the high-bandwidth memory that goes into AI accelerators. Management guided for even more in the current quarter: about $50 billion in revenue.
To grasp the scale, Micron earned more in this single quarter than it did in some entire years of the last cycle. Revenue of $41.46 billion was up from $9.3 billion a year earlier, and that guide of $50 billion would be another 20% jump on top of it. High-bandwidth memory -- the specialized chips stacked next to AI processors -- is booked out well into next year, which is why the company can guide with such unusual confidence.
"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," said CEO Sanjay Mehrotra in the company's earnings release.
And, unsurprisingly, the cash is piling up.
Micron generated $25.4 billion of operating cash flow and $18.3 billion of adjusted free cash flow in the quarter, ending with about $30.2 billion in cash and investments. Set the $0.15 quarterly dividend against $24.67 of quarterly earnings and the payout ratio is well under 1% -- almost a rounding error.
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Where the cash goes next So where does all that money go?
Three doors are open: a much bigger dividend, share buybacks, or reinvestment in the business. History offers a warning on that last one. Memory is cyclical, and makers have a habit of plowing cash into new capacity at the peak, only to watch prices crash once it comes online. Micron is doing some of that already -- capital expenditures were $7.1 billion in the quarter and rising as it builds cleanroom capacity for AI memory.
Management has been fairly explicit about the sequence. It says it expects to return 100% of its excess cash to shareholders over time, and plans to step up capital returns later this year.
So, what is its plan? Capacity first, bigger shareholder returns after. A boosted dividend and buybacks are the pressure valve that hasn't been opened yet.
This order of priorities when it comes to how Micron plans to deploy its excess cash makes sense. Buy back a lot of stock at the top of a memory cycle, and you risk overpaying right before earnings roll over. Hike the dividend too aggressively, and you may have to defend it through the next downturn. Micron has been burned by both mistakes before, and its cautious approach here arguably reflects a management team that remembers exactly what the bottom of a memory cycle feels like.
For a dividend stock trading at about 22 times earnings, that gap between what Micron makes and what it pays is the clearest sign of how extreme this memory up cycle has become. I'd expect the payout and buybacks to climb meaningfully once those commitments free up.
Micron má 16 strategických zákaznických dohod a po jejich dokončení z nich může plynout zhruba polovina tržeb. Tyto víceleté kontrakty mají zajistit stabilnější výnosy i marže.
Last week, the artificial intelligence (AI) community held its breath ahead of Micron Technology's (MU 5.68%) fiscal third-quarter earnings call. Both revenue and earnings per share (EPS) absolutely blew Wall Street's expectations out of the water. But interestingly enough, sales and profits weren't the most important takeaway from the report.
What most investors are overlooking is how Micron is reshaping its customer relationships. The company has implemented strategic customer agreements (SCAs) at a time when AI is driving unprecedented demand for memory and storage. These multiyear contracts provide committed volumes of DRAM and NAND while bringing higher revenue visibility and margin stability than traditional arrangements during prior boom cycles.
By shifting from transactional sales to long-term partnerships, Micron is quietly addressing the core bottleneck of matching the explosive demand for AI-driven infrastructure with reliable supply -- positioning the company for more durable financial performance in the years ahead.
Image source: Micron Technology.
Breaking down the scope of Micron's SCAs According to management, Micron has 16 SCAs across the data center, consumer, and automotive segments. To me, this is the most important figure from Micron's entire earnings report.
These agreements include four "very large customers" and three medium-sized businesses. The balance consists of smaller automotive companies. Management expects that once all the SCAs are completed, approximately half or more of the company's total revenue will stem from these agreements.
The breadth across end markets -- from AI accelerators to smartphones, PCs, and vehicles -- demonstrates that the business model applies broadly rather than being limited to a few hyperscalers.
How are Micron's SCAs structured? Micron's SCAs are structured as take-or-pay contracts with binding commitments to purchase specific volumes over multiyear terms. Most agreements last for five years, spanning calendar 2026 through the end of 2030. The smaller automotive agreements generally cover three years, however.
Management pointed out that the pricing framework includes a floor price that ensures robust gross margins well above Micron's historical peak levels, paired with a ceiling at or near current market prices for existing products. A smaller portion of the SCAs feature fixed pricing, while the rest remain subject to market conditions. Among the SCAs, 14 carry a cumulative minimum revenue commitment of approximately $100 billion over the remaining term.
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Why do Micron's SCAs matter for long-term value? Micron's SCAs fundamentally transform the company's business model by replacing cyclical spot pricing with contracted supply assurance and technology collaboration. In an environment where DRAM and NAND demand is expected to remain tight well beyond calendar year 2027, customers gain visibility into future memory availability while Micron secures predictable volumes and a floor on profit margins.
The result is significantly improved visibility into revenue, gross margins, and free cash flow -- all of which mitigate earnings volatility. The goal of the SCAs is to lock in a baseline of revenue and high-margin business through 2030, ultimately supporting higher, more predictable earnings per share, as floor pricing insulates profitability even if spot prices moderate.
This newfound predictability reduces the historical cyclical discount applied to memory stocks, supporting a more premium valuation profile for Micron over the multiyear horizon of these agreements. The combination of volume commitments and margin floors creates a more resilient earnings stream that aligns with accelerating AI infrastructure build-outs.
While smart investors understand that Micron's execution on new fab capacity and next-generation architectures remains essential, the SCAs meaningfully de-risk the company's financial outlook and reinforce its position as a transformational supplier in the AI chip value chain. In my eyes, this makes investing in Micron stock more compelling as a core position rather than a purely cyclical play to trade.
Wall Street zůstává na Micron Technology velmi býčí, protože analytici čekají prudký růst provozního zisku. V kalendářním roce 2027 má být třetí nejziskovější firmou na světě.
It's no secret that Wall Street loves Micron Technology (MU 5.68%) stock. On the heels of the company's recent quarterly report, it's also not hard to see why. Micron recorded non-GAAP (adjusted) earnings per share of $25.11 on sales of $41.46 billion in the third quarter of its current fiscal year, which ended May 28. Meanwhile, the average analyst estimate had called for an adjusted profit of $20.78 per share on sales of $35.84 billion in the period.
As impressive as the memory chip leader's performance was in the period, that's far from the only reason that many Wall Street investment firms are super bullish on Micron stock right now. Read on for a look at one key factor that helps explain why Micron stock has risen more than 800% over the last year -- and why top Wall Street analysts think that the stock can keep climbing.
Image source: Getty Images.
Micron's operating profits are expected to keep soaring In terms of operating income, analysts polled by FactSet expect Micron to be the world's third-most profitable company in the 2027 calendar year. The average estimate calls for the business to record operating income of $200.8 billion in the period, trailing only Alphabet's estimated $207.6 billion and Nvidia's estimated $359.4 billion. For reference, the average analyst estimate calls for Microsoft and Apple to post operating profits of $194 billion and $170.5 billion, respectively.
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Micron posted operating income of approximately $10.85 billion in its last fiscal year, up from operating income of roughly $1.94 billion in the previous year. The company is seemingly on track to continue growing its operating profit at an incredible pace, and that helps explain why top Wall Street analysts are so bullish on the stock.
Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Michael Burry otevřel short na Micron Technology 1. července za 1 051,87 USD a tvrdí, že letošní rally čipů je tažená spekulacemi, ne fundamenty. Micron od začátku roku přidal více než 240 %.
Investor Michael Burry, best known for his successful bet against the US housing market portrayed in The Big Short, has reportedly opened a short position in Micron Technology MU, arguing that the memory chip maker's recent rally has been driven by speculative enthusiasm rather than fundamentals.
According to a post published on his Substack, Burry shorted Micron shares at $1,051.87 on July 1 while simultaneously adding to five existing long positions.
The move comes as Micron remains one of the best-performing semiconductor stocks of 2026 despite a recent pullback.
Micron shares have gained more than 240% since the start of the year, although the stock has declined around 10% over the past month after reaching a high of $1,255 following its June 25 earnings report.
Burry questions Micron's valuation and cyclical historyIn his Substack post, Burry argued that Micron's rally reflects investor psychology rather than long-term business fundamentals.
Burry said he shorted the stock because of “fear of missing out, greater fool theory, [and] public commitment bias.”
He also highlighted the company's long history of volatility.
“Micron defines cyclical like no other,” Burry wrote, noting that the company has experienced 34 drawdowns of more than 30% over the past 42 years.
He added that Micron shares are now trading further above their 200-day moving average than at any time since 1984, “not even during the dot-com peak.”
Burry also criticized the company's historical profitability, stating that Micron's median return on invested capital of 4% and median return on equity of 7% are “frankly terrible.”
He further argued that “one quarter in every three, Micron is a destroyer of capital,” pointing to decades of uneven returns and periods of negative free cash flow.
Although options could have provided another way to express a bearish view, Burry said, “the puts seemed expensive,” adding that he “will look to add puts should the stock settle down and bring volatility down.”
The Micron position forms part of Burry's broader negative outlook on artificial intelligence-related semiconductor stocks.
Earlier this week, he disclosed short positions in Nvidia, Applied Materials and the iShares Semiconductor ETF (SOXX), saying AI-related chip stocks could face a 30% correction.
In a separate June 30 Substack post, Burry expressed concern over plans by Samsung Electronics and SK Hynix to invest more than $500 billion in a new semiconductor hub.
“The proximate cause of today’s rally is big spending announced out of Korea,” Burry wrote. “Well, I see that as the beginning of the end.”
Market sentiment toward memory stocks has also weakened more broadly.
Micron shares fell 5% on Thursday after falling nearly 11% on Wednesday alongside sharp losses in SanDisk.
Some market participants linked the decline to reports that Meta is considering selling excess cloud capacity, while another report indicated that Apple is seeking additional memory supply from China.
Commenting on the industry, Swissquote senior analyst Ipek Ozkardeskaya said, “China makes up around 15% of Apple’s sales and other companies could follow these steps as they also see their profits being squeezed by an unreasonable jump in memory chip prices.”
While increasing his bearish exposure to semiconductors, Burry also disclosed that he added to several existing investments.
According to his Substack post, he increased holdings in PayPal, Sprouts Farmers Market, Zoetis, Fannie Mae and Freddie Mac.
Summarizing his latest positioning, Burry wrote: “Yesterday I shorted one stock even though it was down a good amount because I think I have a pretty good idea how this resolves. I also added to five positions. This time may be different, but not nearly different enough.”
Micron těží z vyšších cen pamětí a silné poptávky po AI serverech; ve 3. fiskálním čtvrtletí roku 2026 vykázal rekordní tržby 41,46 miliardy USD a non-GAAP hrubou marži 84,9 %.
Key Takeaways Micron is riding one of its strongest profit cycles as higher memory prices lift revenues and margins.AI servers, HBM, enterprise SSDs and advanced DRAM demand continue to outpace industry supply.Strategic customer agreements now cover about 20% of MU's DRAM volume and one-third of NAND volume. Micron Technology, Inc. (MU - Free Report) is enjoying one of the strongest profit cycles in its history, and higher memory prices remain a major reason behind this momentum. Robust demand for artificial intelligence (AI) servers, high-bandwidth memory (HBM), enterprise SSDs and advanced DRAM continues to outpace industry supply, creating a favorable pricing environment.
In the third quarter of fiscal 2026, Micron Technology reported record revenues of $41.46 billion, up 74% sequentially and 346% year over year. Non-GAAP gross margin expanded to 84.9% from 74.9% in the previous quarter and 39% in the year-ago quarter, while non-GAAP earnings jumped to $25.11 per share from $12.20 in the previous quarter and $1.91 in the year-ago quarter. DRAM revenues increased 67% sequentially, supported by average selling prices rising in the low-60% range. NAND revenues climbed 99%, with average selling prices surging in the mid-80% range.
The pricing outlook remains encouraging. Micron Technology expects DRAM and NAND demand to exceed industry supply beyond calendar year 2027 as AI adoption accelerates across data centers, PCs, smartphones and automotive applications. Limited wafer capacity, slower technology transitions and expanding HBM production are likely to keep memory supplies tight, supporting healthy pricing.
Micron Technology is also strengthening pricing visibility through long-term strategic customer agreements covering a growing portion of its business. The company announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the third quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.
These contracts, combined with continued AI-driven demand and disciplined industry supply growth, should help the company sustain elevated margins. While memory remains a cyclical business, current industry dynamics suggest Micron Technology's profit boom still has room to run. For the fourth quarter of fiscal 2026, the company projects a non-GAAP gross margin of approximately 86%, indicating a robust expansion from the year-ago quarter’s level of 45.7%.
How Are Micron’s Semiconductor Peers Performing on Margins?Major semiconductor players, NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , are also benefiting from the AI boom.
NVIDIA continues to lead the AI accelerator market, with data center revenues growing 92% year over year in the first quarter of fiscal 2027. The company’s non-GAAP gross margin reached 75% from 60.8% in the year-ago quarter, supported by strong pricing power for its AI GPUs and networking products. NVIDIA’s growth indirectly benefits Micron Technology because AI servers using NVIDIA chips require large amounts of DRAM and HBM memory.
Advanced Micro Devices is also gaining momentum in AI and data center markets. Its EPYC server processors and Instinct AI accelerators are helping expand enterprise adoption. AMD’s data center revenues surged 57% year over year to a record $5.78 billion in the first quarter of 2026, while non-GAAP gross margins expanded 180 basis points to 55.4%. As AI server deployments rise, Advanced Micro Devices’ growth is increasing demand for advanced memory and storage products supplied by Micron Technology.
MU’s Price Performance, Valuation and EstimatesShares of Micron Technology have surged around 242.6% year to date compared with the Zacks Computer and Technology sector’s return of 16.8%.
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 8.52, significantly lower than the sector’s average of 23.18.
Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 791% and 107%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.
Image Source: Zacks Investment Research
Micron Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology letos vzrostl o 242,6 %, ale stále se obchoduje jen za 8,52násobek forwardového zisku. Poptávku po AI pamětech podporuje i to, že HBM na rok 2026 je vyprodána a část výroby pro rok 2027 už je závazně zajištěna.
Key Takeaways Micron Technology has surged 242.6% YTD, beating the broader tech sector as well as major chip peers.MU trades at 8.52X forward earnings, far below the sector average and AI-focused semiconductor peers.Micron Technology's AI memory demand is backed by sold-out 2026 HBM supply and committed 2027 production. Micron Technology, Inc. (MU - Free Report) has been one of the biggest winners in the semiconductor space this year. The memory chip giant has benefited from the rapid expansion of artificial intelligence (AI), which is driving strong demand for high-bandwidth memory (HBM) and advanced DRAM products used in AI servers. Investors have rewarded the company for its improving earnings outlook, expanding margins and leadership in AI memory.
The stock has surged 242.6% year to date (YTD), comfortably outperforming the broader Zacks Computer and Technology sector's 16.8% gain. It has also beaten several major semiconductor peers, including Marvell Technology, Inc. (MRVL - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Marvell Technology has soared 190.4% YTD, while Advanced Micro Devices has rallied 142.3%. NVIDIA, despite remaining a dominant AI player, has delivered a comparatively modest return of 4.4% so far this year.
Such a sharp rally often raises an important question for investors: Has Micron Technology become too expensive?
Surprisingly, the answer may be no. Even after its impressive run, Micron Technology continues to trade at a valuation that looks attractive compared with both the technology sector and many leading semiconductor companies, including Marvell Technology, Advanced Micro Devices and NVIDIA. This combination of strong growth and a reasonable valuation makes the stock an ideal investment option despite the robust YTD rally.
Micron Technology's Valuation Still Looks AttractiveOne of the biggest reasons investors should remain bullish on MU stock is its inexpensive valuation relative to its earnings growth potential. The company currently trades at a forward 12-month price-to-earnings (P/E) multiple of just 8.52. This is far below the sector average of 23.18.
Micron Technology Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Micron Technology also trades at a discount to AI-focused semiconductor companies such as Advanced Micro Devices, Marvell Technology and NVIDIA despite operating in one of the fastest-growing segments of the chip industry. At present, Advanced Micro Devices, Marvell Technology and NVIDIA trade at P/E multiples of 54.15, 49.72 and 19.18, respectively.
A lower valuation does not automatically make a stock a bargain. However, when it is supported by improving profitability, rising earnings estimates and strong industry demand, it often creates an attractive buying opportunity. Micron Technology appears to fit that profile as it continues to benefit from the AI infrastructure spending cycle.
AI Memory Demand Creates a Powerful Growth Engine for MUThe biggest catalyst behind Micron Technology's growth is the booming demand for AI memory. Modern AI models require significantly larger memory capacity and much higher bandwidth than traditional computing workloads. This has increased demand for HBM, DDR5 DRAM and advanced data center SSDs, all of which are important parts of Micron Technology's product portfolio.
Major cloud providers and AI infrastructure companies continue to invest heavily in expanding their data centers. Amazon, Microsoft, Alphabet and Meta Platforms are expected to spend around $700 billion in capital expenditures in 2026. The majority of that spending is expected to go toward AI infrastructure, including data centers, networking equipment, advanced processors and memory solutions. This spending supports strong demand for Micron Technology's memory solutions, particularly as next-generation AI servers require more memory per system than previous generations.
The company has also strengthened its competitive position through technological leadership. Its latest HBM products offer improved performance, better power efficiency and higher capacity, making them attractive for AI accelerators used by leading chipmakers and cloud companies. The company has already sold out its HBM supply for the calendar year 2026, while a significant portion of 2027 production is already committed through long-term customer agreements.
As AI adoption expands across industries, memory content per server is expected to increase further, creating a long runway for Micron Technology's revenue growth.
MU’s Strong Financial Performance Supports the Bull CaseMicron Technology's top-line performance has improved significantly alongside rising AI demand. In the third quarter of fiscal 2026, revenues soared 346% year over year to $41.46 billion. The company announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the reported quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.
Higher-value products are becoming a larger share of Micron Technology's sales mix, allowing the company to generate stronger earnings even without relying solely on higher shipment volumes. Non-GAAP earnings per share jumped to $25.11 in the third quarter from $1.91 reported in the year-ago quarter.
The company’s top and bottom lines both comfortably exceeded analysts’ expectations, highlighting the strength of demand across Micron Technology’s key markets.
Better pricing for DRAM and NAND products, combined with increasing shipments of premium AI memory, has helped expand gross margins and improve profitability. Third-quarter fiscal 2026 non-GAAP gross margin rose to 84.9% from 39% a year ago, while non-GAAP operating income climbed to $33.68 billion from $2.49 billion. Non-GAAP operating margin reached an impressive 81.2% from 26.8% in the year-ago quarter, reflecting Micron Technology’s ability to convert booming AI-driven demand into substantial profits.
Management also continues to invest in advanced manufacturing technologies and next-generation memory products. These investments should help Micron Technology maintain its competitive position while meeting growing customer demand over the long term.
Final Thoughts: Buy More Micron Technology SharesMU stock's remarkable rally may discourage some investors from buying at current levels. However, valuation tells a different story. Unlike many AI-related stocks that now trade at premium multiples, Micron Technology still offers exposure to one of the fastest-growing areas of the semiconductor industry at a relatively modest valuation.
The company appears well-positioned to benefit from multiple long-term trends, including AI, cloud computing and data center expansion. Its technology leadership, improving financial performance and attractive valuation provide a compelling investment case.
Micron Technology sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron klesl o 4 % i přes chválu Donalda Trumpa a býčí výhled Mizuho, protože investoři dál prodávají technologické a polovodičové akcie. Akcie už předtím spadly o 10 %.
Micron Technology MU shares extended their recent decline on Thursday, falling 4% after tumbling 10% in the previous session, as broader weakness across technology stocks continued to weigh on semiconductor names.
The latest decline came despite public praise from President Donald Trump and a bullish outlook from Mizuho Securities, highlighting how investors remained focused on the broader selloff in high-growth technology stocks.
Micron shares have still posted exceptional gains this year, rising 219% in 2026 despite the recent pullback.
Earlier this week, Micron announced a $250 million investment in Trump Accounts, tax-advantaged savings accounts for children under the age of 18.
Under the program, children born between 2025 and 2028 will receive a $1,000 deposit from the US Treasury Department.
Following the announcement, President Donald Trump praised the company in a post on Truth Social.
"Micron, a truly GREAT American Company, and one of the 'HOTTEST' anywhere in the World, has announced a HISTORIC $250 MILLION Investment in TRUMP ACCOUNTS," Trump wrote.
Despite the endorsement, Micron shares continued to decline as investors rotated out of semiconductor stocks.
The weakness was part of a broader technology selloff that has affected many of the year's strongest performers.
The pressure on Micron coincided with a sharp decline in South Korea's stock market, where technology shares led losses.
South Korea's KOSPI index dropped 7.9% on Thursday as the technology selloff spread beyond US markets.
Major memory chip manufacturers SK Hynix and Samsung Electronics, two of Micron's largest competitors, declined 14.6% and 9.1%, respectively.
Although the selloff has been significant, both Micron and the broader South Korean market have delivered strong gains this year.
The KOSPI remains up 81% in 2026, compared with a 9.3% gain for the S&P 500 over the same period.
Mizuho maintains bullish long-term outlookDespite the recent volatility, Mizuho Securities continues to view Micron as its preferred investment among leading semiconductor companies.
Mizuho Securities put out its top picks for July on Thursday which featured Robinhood and Oracle.
Analyst Vijay Rakesh maintained an Outperform rating on the stock with a price target of $1,375.
According to Mizuho, Micron delivered its strongest quarterly stock performance on record during the second quarter, with shares gaining 242%, even though the stock declined following its third-quarter earnings report.
Rakesh said demand for memory products is expected to remain strong through 2027, supported by continued investment in artificial intelligence infrastructure.
"We see MU and other key memory suppliers all seeing strong near-term tailwinds, driven mostly by AI demand," Rakesh wrote.
He also said Micron is expected to remain a "key winner" in the memory semiconductor industry.
The recent pullback underscores the volatility surrounding semiconductor stocks after a powerful rally earlier this year.
While investors have taken profits across the technology sector, analysts continue to point to long-term demand for AI-related memory products as a supportive factor for Micron's business outlook.
The story rippling through memory stocks this week began on CNBC’s Fast Money on June 29, where the panel dug into a report that Apple is trying to source memory chips from Chinese manufacturer CXMT. The company Apple (NASDAQ:AAPL | AAPL Price Prediction) wants to buy from is not yet on the US entity list, unlike YMTC, which already is.
For Micron Technology (NASDAQ:MU), whose Mobile and Client segment just did $11.521 billion in a single quarter, that is a shot across the bow.
An Apple exit would blow through Micron’s mobile book Micron’s fiscal Q3 2026 revenue landed at $41.456 billion, up 345.7% year over year, non-GAAP EPS at $25.11, and GAAP gross margin at 84.6% against 37.7% a year earlier. Guidance was, if anything, more startling. $50 billion in revenue and $31 in EPS for the next quarter. CEO Sanjay Mehrotra called out “multi-year Strategic Customer Agreements” that he said would make the earnings stream more durable, and the numbers, per the Q3 8-K press release, do back him up.
Now imagine Apple, the world’s most powerful buyer of LPDDR5X mobile memory, quietly pointing a slug of that demand at a Chinese fab that undercuts everyone on price. Apple sits on a $4.31 trillion market cap and, according to Tim Cook, is fighting through what he called a “100-year flood” in memory pricing. Cheaper Chinese chips solve his margin problem. They also punch a hole in Micron’s most consumer-exposed segment.
The cycle Carter Worth is worried about On the CNBC panel, Christina Partsinevelos made the counter-case that Micron’s real growth engine is high-bandwidth memory for AI training, which dwarfs iPhone DRAM in both dollar terms and margin. She noted that “just 3 years ago, Micron was losing money on every chip,” and now “gross margins are well above 80%.” That gap is the whole problem. Margins that fat are an invitation for every competitor with a fab to add capacity, and the host warned that “you could see this collapse and prices take effect way before supply hits the market.”
Carter Worth’s chart-based read was blunter. He flagged “4 instances since March where it’s dropped 20% within a 2-3 day period” and recommended trimming. Micron’s own tape agrees: shares are up 838.82% over the past year and were down 9.67% today alone. Polymarket’s most-traded contract for this week now shows a 50.5% probability of MU touching $1,020 and a 50% shot at $990, which is the crowd pricing in exactly the two-day flush Worth described.
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The CHIPS Act was built to prevent this exact deal Samsung and SK Hynix already control 60% of the memory market and are bringing capacity online at scale. SK Hynix lists in the US on July 10, with proceeds potentially funding China expansion. Micron’s answer, the fab in Clay, New York first announced in 2022, won’t be ready until 2030. That is the awkward part.
The $52 billion CHIPS Act was designed to keep advanced memory production onshore, and Apple sourcing from a Chinese supplier that has not yet been sanctioned undermines the whole premise. Once a customer of Apple’s scale qualifies CXMT, unwinding that relationship in any future entity-list expansion becomes a years-long problem.
What it means for the storage complex The read-through touches NAND, too. SanDisk (NASDAQ:SNDK) has ridden the same wave, up 857.84% year to date on datacenter NAND pricing, and Western Digital (NASDAQ:WDC) is up 271.05% YTD on HDD demand for AI training data. Both fell hard today alongside Micron. The AI thesis still holds. What shifted today is the market’s assumption that memory pricing has a floor Chinese supply cannot reach.
If Worth is right that Micron’s normalized gross margin looks a lot more like 29% than 84%, the cycle turns regardless. The live question is whether an Apple-CXMT handshake pulls that turn forward by a year.
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Morningstar is warning investors to brace for a reckoning in AI stocks, with memory-chip names sitting on the biggest gains facing the most downside. In a Bloomberg TV segment, Morningstar director of research Lorraine Tan warned that a large slice of AI names could give back 20% to 30% before they become buyable again. For holders of Micron Technology (NASDAQ:MU | MU Price Prediction), the poster child of the rally, that raises an obvious question: is it time to lighten up?
The rally that scared Morningstar Memory has been the runaway trade of 2026. Micron is up 304.62% year to date and 838.82% over the past year, while SanDisk (NASDAQ:SNDK) has surged 857.84% YTD and Western Digital (NASDAQ:WDC) 271.05%. Semiconductor equipment maker Lam Research (Nasdaq: LRCX) has doubled, up 153.61%. Even AI bellwether NVIDIA (NASDAQ:NVDA), tame by comparison at 7.42% YTD, has ridden a 26.81% gain over the past year.
Tan told Bloomberg that “stocks are priced for perfection. Although valuations seem stretched, people are buying into the optimism.” Her sharper concern was the pace of the move: “The explosiveness of the returns you saw in the second quarter it is a bit scary in that sense because the market is extrapolating for the strong growth to continue through 2028. We have our doubts there. We expect spending to taper off.” Asian equities had reversed early Q3 gains, with the MSCI Asia index down slightly after posting its strongest quarter in 17 years.
The memory reckoning Tan’s case rests on capacity. “The announcements from Samsung and SK Hynix, that will lead to what we think will be softer pricing. Essentially, the supply will catch up with demand. You will not see the same loftiness in growth rate on the pricing of memory chips, for example,” AI capex growth is expected to peak in 2026, with spending increases slowing materially through 2029.
That thesis hits Micron squarely. The company reported Q3 FY26 revenue of $41.46 billion, up 345.7% year over year, with non-GAAP EPS of $25.11 and GAAP gross margin of 84.6%. CEO Sanjay Mehrotra guided Q4 revenue to $50.0 billion and EPS to $31.00, framing multi-year Strategic Customer Agreements as cycle insulation (see the press release). SanDisk logged Datacenter revenue up 645% YoY to $1.47B, and Western Digital cleared 50% non-GAAP gross margin for the first time. Those are peak-cycle results, exactly the kind of loftiness Tan expects to normalize.
Micron currently trades at a trailing P/E of 26 and a forward P/E of 7. The consensus analyst target is $1,410.45, with 39 buy or strong-buy ratings against just 1 sell. Sell-side positioning runs directly counter to Tan’s caution.
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Equipment, foundries, and the consumer risk Lam Research is the pick-and-shovel play most levered to Samsung and SK Hynix capex. Q3 FY26 revenue reached $5.84 billion (+23.8% YoY), though shares trade at a trailing P/E of 82 and forward P/E of 55. If capex tapers after 2026, the multiple has room to compress.
Tan named Taiwan Semiconductor (NYSE:TSM) among quality survivors she remains constructive on. TSMC reported May revenue of NT$416.98B, up 30.1% YoY, and CEO C.C. Wei is targeting more than 30% full-year revenue growth. Shares are up 57.94% YTD, a fraction of the memory move.
Tan flagged a second risk: consumer demand destruction feeding back into chips. “If you are in consumer or what I’m saying is, I think the demand for AI Services will remain relatively strong. At the end of the day, if the consumer says I’m not going to buy this or that good, I think that will blow through to the other segments of the industries that rely on chips.”
So is it time to sell Micron? Tan did not name Micron on Bloomberg, but her framing fits: “It could be big for some stocks that have gone up double, triple, whatever in the past couple months. We expect 20, 30% correction for a good percentage of the names we cover before they come into areas we think would be worth buying again.” She sees opportunity on the other side of that reset, and Micron’s forward P/E of 7 assumes current earnings power holds. Investors weighing that call should watch Samsung and SK Hynix supply additions, HBM4 pricing, and hyperscaler capex guidance into 2027.
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Micron Technology v roce 2026 vzrostl o 309 % a těží z prudkého nedostatku paměťových čipů. Ve 3. fiskálním čtvrtletí roku 2026 tržby stouply meziročně o 346 % na 41,5 miliardy USD.
Micron Technology (MU 10.13%) is a candidate for stock of the year halfway through 2026. Its shares are trading up about 309% so far in 2026, making it the second-best performing stock in the S&P 500 (^GSPC 0.22%), trailing only Sandisk, another memory chipmaker. Its newfound success has also allowed it to join the $1 trillion valuation club.
But after the stock has quadrupled to start the year, there are obvious questions about how much upside is left. Let's take a look at Micron's business to see if its stock is one to buy now or one to avoid.
Image source: Getty Images.
Memory chip demand isn't slowing down Micron is caught in the middle of the biggest demand wave memory chip companies have ever seen. The data center build-out has required an immense amount of memory, and companies like Micron do not have nearly the capacity to meet demand. When there is a huge demand and low supply, prices skyrocket, and that's exactly what's driving Micron's stock price higher.
This increased demand isn't expected to resolve anytime soon, as Micron believes the memory chip supply crunch will persist beyond calendar year 2027. That means these elevated prices are here to stay, and even with Micron opening new production facilities in 2027, it still may not be enough to drive prices down.
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That creates a bullish environment for Micron's stock, and its finances back it up. During Q3 of fiscal year 2026 (ending May 28), Micron's revenue rose a jaw-dropping 346% year over year to $41.5 billion. For reference, Micron provided guidance for $33.5 billion. That's a huge guidance beat, but it's far from done. Next quarter, Micron expects $50 billion in revenue. Growth is clearly driving Micron's stock, and it's the major reason the stock was up so much following the announcement, but is there still room to run?
Since the quarter underway is Micron's Q4, I think it's best to start valuing the stock on fiscal year (FY) 2027 earnings, which would start in September. From that perspective, Micron's stock trades for a cheap 7.6 times forward earnings.
Data by YCharts.
The S&P 500 trades for 21.5 times forward earnings, and many big tech stocks can trade for far higher. That suggests Micron's stock could still have a long way to run, especially if the memory chip crunch persists beyond 2027.
As a result, I think investors can purchase Micron's stock now and still have solid gains over the next few years.
As MU stock was falling, President Trump posted on Truth Social calling Micron Technology (NASDAQ:MU | MU Price Prediction) “one of the HOTTEST anywhere in the World” and celebrating a “HISTORIC $250 MILLION Investment in TRUMP ACCOUNTS” pledged by CEO Sanjay Mehrotra, tied to America’s 250th anniversary. He signed off with “THIS IS THE GOLDEN AGE OF AMERICA!”
However, the stock went down down 10.67% on the day.
That is a rare thing in markets. A sitting president singling out one company for a shower of praise usually moves the stock, at least for an afternoon. On Wednesday, it moved nothing.
Why a presidential endorsement moved the stock zero Micron came into today priced for something close to perfection. The stock is up 754% over the past year and 227% year to date, with a market cap sitting around $1.17 trillion. When a stock has already tripled in six months, the marginal buyer needs a reason bigger than a Truth Social post to chase it higher.
The Q3 fiscal 2026 earnings report on June 24 was that reason, and it already ran. Revenue landed at $41.456 billion, up 345.72% year over year, beating consensus by 17.60%. Non-GAAP EPS came in at $25.11 against a $20.28 estimate, the seventh consecutive beat. GAAP gross margin jumped to 84.6% from 37.7% a year earlier. Management guided Q4 to $50 billion in revenue and $31.00 in EPS.
You can read the press release exhibit filed with the SEC for the full breakdown. Investors bought the news the hour it hit and have been trimming ever since.
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What is actually driving Micron down today Memory chips are getting sold across the board. SanDisk (NASDAQ:SNDK) fell 9.91%, Western Digital (NASDAQ:WDC) dropped more than 10%, and other AI-adjacent names are lower. The semiconductor ETF iShares Semiconductor ETF (NASDAQ:SOXX) is coming off a 6.19% weekly gain, and today looks like the profit-taking day that inevitably follows a vertical move.
There is also insider tape to reckon with. Mehrotra sold $32.7 million of stock on June 26 under a 10b5-1 plan, with shares near a 52-week high. That is programmatic selling by rule, but at these prices it lands harder. Prediction markets on Polymarket priced the odds of a down day today at 98.5% before the open. Traders saw this coming.
What the Trump post actually adds to the thesis The $250 million commitment to Trump Accounts is a corporate goodwill gesture with political theater attached. It does not change the shape of Micron’s income statement. The thing that matters, and Mehrotra keeps saying it, is the shift to multi-year contracts. On the earnings call he told analysts that “the memory industry has been structurally transformed by the proliferation of AI” and that Micron has signed 16 Strategic Customer Agreements covering roughly 25% of total revenue over their terms, projected to reach approximately $100 billion in cumulative floor-price revenue across 14 of those deals.
Micron is also holding $22 billion in customer cash deposits and letters of credit against take-or-pay commitments. HBM4 shipments have already crossed $1 billion, and Mehrotra said the ramp is tracking twice as fast as HBM3E 12-high.
Micron’s fundamental case is intact, arguably strengthened, by the Q3 results and the SCA structure. What today shows is that stocks trading at trillion-dollar valuations after 800% runs need real capital flows, not applause. When the buyer of last resort is a president typing in all caps, the marginal seller wins.
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The Micron Technology logo is displayed on a smartphone screen with the company's website in the background, in Creteil, France, on May 27, 2026. The American semiconductor company officially crosses the symbolic threshold of $1 trillion in market capitalization on Wall Street the previous day. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The memory industry is in the midst of an unprecedented boom.
AI servers are driving unprecedented demand for high-bandwidth memory; supply remains tight, and DRAM prices have surged, forcing PC and smartphone makers to look beyond their traditional suppliers. That search is increasingly leading them to China. Apple has reportedly sought approval to source DRAM chips from blacklisted ChangXin Memory Technologies (CXMT), while Dell Technologies, HP Inc., Acer, and ASUS are reportedly considering similar moves.
For companies like Micron (MU), which recently posted gross margins above 84%, the real question is whether today’s extraordinary profitability can survive China’s entry into the market.
And if history is any guide, investors should start paying close attention.
China has followed this playbook before. Solar panels, batteries, EVs, and shipbuilding all went through the same cycle: state-backed investment, reverse-engineered technology, and relentless manufacturing scale, until established global players could no longer compete on cost. Until now, memory chips seemed immune. For nearly three decades, the DRAM market has been dominated by Samsung Electronics, SK Hynix, and Micron, whose technological lead and manufacturing expertise kept challengers at bay.
But the current shortage may be creating the opening China has been waiting for. If this shortage gives Chinese memory makers their first meaningful foothold with global OEMs, it could mark the biggest competitive shift the DRAM industry has seen in 30 years.
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The Squeeze That Created An OpeningThe proximate cause is the AI memory supercycle. Conventional DRAM contract prices surged between 93% and 98% QoQ over the first quarter of this year.
Samsung, SK Hynix, and Micron are shifting wafer capacity toward high-bandwidth memory, the premium high-speed memory that sits alongside Nvidia (NVDA) AI accelerators, because that is where the margin is. This is having a major side effect: commodity DRAM, the kind that goes into laptops and phones, is getting squeezed out. Apple just raised MacBook and iPad prices by between $100 and $300, citing component costs, while simultaneously shopping for a cheaper Chinese alternative. Both moves point to the same conclusion: management sees this as structural, not a passing cycle.
That is the opening companies like China’s CXMT could step into. And the speed of its rise is notable. The company began volume DRAM production in 2020. By 2026, its global revenue share had reached 8%, up from 3% a year earlier, making it the fourth-largest DRAM maker. CXMT currently has two 12-inch DRAM fabrication plants with a combined capacity of about 300,000 wafers per month. There are reports that, with a new Shanghai facility as well as other new capacity, CXMT will double its DRAM wafer output to approximately 600,000 wafers per month, according to Reuters. This compares to Micron’s own 385,000 capacity. Revenue is on pace for roughly 700% year-over-year growth in early 2026, with the company posting its first-ever profitable quarter. Its DDR5 chips are already inside Lenovo laptops shipping today.
Investors are betting that Micron will see a multi-year upcycle, driven by long-term contracts for memory. But there could be a catch.
There Are Still ChallengesStill, China’s memory push has a problem that its other sectors, such as solar and EVs, did not. Those industries were won mostly by building factories faster and cheaper than anyone else, using technology that was largely available to whoever could afford it. Memory is different because of a single piece of equipment: extreme ultraviolet (EUV) lithography machines, made only by the Dutch company ASML, which are not essential for DRAM production but are critical for manufacturing the most advanced chips efficiently. Washington has blocked ASML from selling these machines to Chinese firms, so CXMT is stuck building chips with older tools, no matter how much capital Beijing throws at it.
That shows up clearly in the numbers. CXMT’s DDR5 die is roughly 40% larger than Samsung’s equivalent, which means fewer usable chips per wafer and a structurally worse cost base, not a better one. The larger die size is itself a byproduct of working without EUV: older lithography tools cannot pack circuits as densely, so CXMT needs more silicon to do the same job. Its cost per bit remains more than 30% above the three leading suppliers, suggesting its current profitability is a function of unusually strong pricing across the whole market, not genuine product superiority.
The gap is starker in HBM, the high-bandwidth memory used in AI accelerators and the segment driving SK Hynix’s and Samsung’s surge. CXMT has only sampled HBM2 and HBM3 chips with customers like Huawei; commercial-volume production keeps slipping, even as rivals are already shipping HBM4. Unlike DDR5, catching up in HBM requires far more than manufacturing scale and capital investment.
What It Means For Micron, Samsung And SK HynixFor the likes of Micron, Samsung, and SK Hynix, China’s rise is a challenge, but not an existential one. CXMT is emerging as a credible competitor in commodity DRAM, where it could pressure pricing in PCs and smartphones. But the real investment story has shifted to HBM, where demand from AI accelerators remains strong and technological barriers are much higher. As long as China lacks access to EUV lithography and advanced HBM manufacturing, the incumbents are likely to maintain their lead in the industry’s fastest-growing and most profitable market.
That said, the industry’s trajectory will depend not just on technology, but also on regulation. Export controls, licensing decisions, and trade policy could determine how quickly Chinese suppliers expand globally and how much of the memory market ultimately becomes contestable.
A disciplined portfolio approach helps smooth these risks while still participating in long-term growth themes. The Trefis High Quality (HQ) Portfolio has consistently outperformed its market benchmark since inception, delivering cumulative returns of over 105%.
Micron a General Motors uzavřely strategickou dohodu o dlouhodobých dodávkách paměťových a úložných platforem pro výrobu vozů GM. Současně budou spolupracovat na technologiích pro další generaci vozidel.
BOISE, Idaho, July 01, 2026 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) and General Motors announced a Strategic Customer Agreement (SCA) to secure a long-term, reliable supply of memory and storage platforms critical to GM’s vehicle production and delivery at scale. Micron and GM are working together to strengthen semiconductor and automotive supply chains while supporting the next generation of U.S. manufacturing and innovation.
Automotive platforms and production require consistent component supply over extended lifecycles, making predictability and continuity of memory supply a critical priority for the industry. Ensuring consistent access to memory and storage is essential not only for automakers but also for consumers looking for new vehicles with the latest technology and safety standards amid rising global semiconductor demand.
In addition to the committed supply in this agreement, Micron and GM continue to collaborate on future memory and storage technology requirements essential for the next generation of vehicles. This includes deep technology collaboration to align on future product definition, system-level optimization, and the qualification of advanced memory technologies to support GM’s next generation of vehicle architectures and roadmaps.
This agreement is enabled by Micron’s ongoing investments to expand and localize supply for automotive customers, including advanced DRAM manufacturing in Manassas, Virginia. Micron’s $2 billion investment to modernize its Manassas fab, which began production earlier this year, provides the longevity and supply output valuable to long product lifecycles, improved supply predictability, and helps ensure product continuity across the industry.
Enhanced customer experiences through local compute that support AI-enabled in-cabin experiences and advanced driver assistance (ADAS) autonomy are driving the importance for advanced memory and storage in this industry. Through this agreement, GM will secure supply of LPDRAM, NOR and UFS NAND products and with continued collaboration, Micron and GM will validate and qualify future technologies. As vehicles become increasingly software-defined and AI-driven, memory and storage performance, reliability, and scalability are essential to enabling next-generation capabilities.
“We are proud to expand our strategic relationship with General Motors to deliver both long-term supply assurance and technology innovation critical to the future of the automotive industry,” said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. “As demand for memory and storage continues to grow, we are investing to extend supply availability, expand capacity and align more closely with our customers to improve supply predictability across the automotive ecosystem. Our expanding manufacturing efforts in the United States are designed to enable GM to deliver both near-term products as well as secure U.S.-based supply to support next generation platforms and innovation.”
“Delivering next-generation vehicles at scale requires a resilient and closely aligned supply chain,” said Mary Barra, Chair and CEO of General Motors. “Our expanded collaboration with Micron strengthens our access to critical memory technologies while enabling deeper integration across our vehicle platforms, supporting both performance and long-term reliability. This agreement reinforces the supply chain needed to support future vehicle innovation and production.”
These strategic customer agreements are part of Micron’s broader approach to strengthening supply continuity across the global semiconductor ecosystem. By aligning long-term demand with committed capacity and engineering collaboration, Micron is improving planning visibility, reducing supply variability, and helping ensure that critical industries, including automotive, have reliable access to the memory and storage technologies required to operate and innovate at scale.
Micron’s long-standing leadership in automotive memory and storage, combined with its expanding global manufacturing investments, positions the company as a key partner to leading automakers like GM as the industry transitions to more intelligent, connected, and autonomous vehicles.
This SCA is one of the 16 discussed on Micron’s fiscal third-quarter 2026 financial conference call.
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.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the anticipated benefits of the Micron-GM collaboration. 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 Micron files with the Securities and Exchange Commission, specifically its most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at https://investors.micron.com/risk-factor. Although Micron believes that the expectations reflected in the forward-looking statements are reasonable, Micron cannot guarantee future results, levels of activity, or achievements. Micron is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results.
Micron vykázal rekordní tržby 41,4 miliardy USD a EPS 24,67 USD díky silné poptávce po pamětech pro AI. Firma očekává v dalším čtvrtletí další růst na tržby 50 miliard USD a EPS 30,73 USD.
Micron Technology (MU +1.12%) stock has surged more than 800% during the past 12 months on soaring demand for the company's high-bandwidth memory (HBM) for data centers, which has become a key component in the artificial intelligence (AI) hardware stack.
Despite its incredible gains, Micron stock is still technically cheap when valued against its future potential earnings. However, that paints an incomplete picture, especially with some cracks forming in the AI demand landscape. Here's why I won't buy Micron stock for anywhere near its closing price of $1,145 on June 29.
Image source: The Motley Fool.
Micron is playing a critical role in the AI boom Graphics processing units (GPUs), such as those Nvidia supplies, are the primary data center chips used for AI training and inference. HBM stores data in a ready state for when GPUs are ready to process it, which speeds up AI workloads. A low memory capacity would cause bottlenecks, as GPUs would have to pause while waiting to receive more information.
Micron recently started shipping its HBM4 chips, which offer 60% more capacity than its previous HBM3E solution, with a 20% improvement in energy efficiency. Nvidia will use this product in its new Vera Rubin GPU systems, which are expected to lead the industry in terms of AI processing power when they ship to customers in the second half of 2026.
But Micron also has a big opportunity in the personal computing and smartphone segments. AI models are gradually becoming more efficient, so many devices can now run them independently of external data centers, as long as they have a sufficiently high memory capacity. This development is driving a surge in demand for Micron's direct random access memory.
Moreover, Micron says the average vehicle with even basic autonomous capabilities requires more than five times the memory capacity of a traditional vehicle. But it gets better, because the company says humanoid robots need a whopping 10 times more memory than the average autonomous vehicle. As AI seeps into the physical world, these industrial segments could become the next major growth areas for Micron.
Micron's revenue and earnings are skyrocketing Micron generated a record $41.4 billion in revenue during its fiscal 2026 third quarter (ended May 28), a staggering 346% increase from the year-ago period. AI-related memory sales were responsible for the majority of that incredible momentum, across all four of the company's revenue categories:
Segment
Q3 Revenue
Revenue Growth (Year Over Year)
Cloud memory
$13.7 billion
307%
Core data center
$11.5 billion
653%
Mobile and client
$11.5 billion
254%
Automotive and embedded
$4.6 billion
311%
Data source: Micron Technology.
The cloud memory business is where Micron reports sales of its HBM for the data center, while the core data center segment is where it accounts for sales of storage solutions. Together, they accounted for the bulk of the company's total revenue, which isn't surprising given most AI workloads are still processed using centralized infrastructure. However, its results in the mobile and automotive businesses also highlight the impact of AI outside the data center.
Since there is currently a severe shortage of memory worldwide, Micron can dictate prices, and that is significantly boosting its profit margins. As a result, the company's earnings exploded by 1,368% to $24.67 per share in the third quarter.
Management's forecast for the current fourth quarter suggests further momentum lies ahead. The company is expected to generate $50 billion in revenue and earnings of $30.73 per share, representing year-over-year increases of 342% and 985%, respectively.
Micron stock is cheap, but there's a catch Based on Micron's trailing-12-month earnings of $44.23 per share, its stock is trading at a price-to-earnings (P/E) ratio of 25.6. That means it's cheaper than the Nasdaq-100 technology index, which has a P/E ratio of 34.1.
According to Wall Street's average forecast (from Yahoo! Finance), Micron's earnings could soar to $148.03 per share in fiscal 2027, placing its stock at a forward P/E ratio of just 7.6. A company growing as fast as Micron would normally command a premium valuation, so why is it so cheap? Simply put, I think many investors feel the memory boom will be relatively short-lived.
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Most memory suppliers are frantically building more manufacturing capacity, which will eventually cause chip prices to crash. When supply eventually catches up to demand, it will be very hard for Micron to increase its earnings from the current level, so its stock might be more expensive today than its forward P/E suggests.
Micron Chief Executive Officer Sanjay Mehrotra doesn't think the memory shortage will ease until around 2028, but that assumes demand remains as robust as it is now -- which brings me to my next point. A recent survey from investment bank UBS Group found that 60% of companies are starting to curb their AI spending by routing tasks to cheaper models, which use less computing power. That isn't good news for chip suppliers.
The survey follows recent comments by Alphabet CEO Sundar Pichai, who said he was fielding complaints from many of Google's enterprise customers about the rising cost of using AI. In addition, Uber Technologies' chief operating officer recently said AI spending is getting harder to justify, as companies such as Anthropic and even Microsoft implement passive price increases to offset soaring infrastructure costs.
As a result, despite Micron's seemingly attractive valuation, I wouldn't feel comfortable buying it here. Any sign of a slowdown in data center spending during the next few quarters could spark a severe decline in the stock, and I think that is an increasingly likely outcome.
Samsung, SK Hynix a Micron čelí v USA žalobě kvůli údajnému omezování výroby DRAM a umělému zdražení pamětí. Žalobci tvrdí, že ceny běžné DRAM za čtyři roky vzrostly asi o 700 %.
Samsung Electronics, SK Hynix and Micron are facing a new US class-action lawsuit that puts the memory-chip boom under legal scrutiny.
The case lands at an awkward moment for the industry as AI demand has pushed memory prices sharply higher, data-centre buyers are racing to secure supply, and consumer electronics companies are starting to pass higher costs on to customers.
Now the legal question is whether the world’s three biggest DRAM makers simply followed the same market incentives, or coordinated to squeeze supply and lift prices.
The complaint was filed on June 25 in the US District Court for the Northern District of California.
The case is Garciaguirre et al v Samsung Electronics Co Ltd et al, and it has been assigned to Judge Nathanael M Cousins.
The plaintiffs include 14 consumers and three small businesses involved in PC building and distribution.
They are seeking class-action status, an injunction and treble damages, which means damages could be tripled if the plaintiffs ultimately prove antitrust violations.
The core allegation is simple: Samsung, SK Hynix and Micron allegedly restricted output of conventional DRAM, especially older DDR3 and DDR4 memory, while shifting capacity toward higher-margin high-bandwidth memory, or HBM, used in AI systems.
The plaintiffs argue that the AI pivot became a cover for an artificial shortage in mainstream memory.
Together, the three companies control roughly 90% of the global DRAM market, which is why their production choices matter so much.
The complaint says conventional DRAM prices have risen about 700% over four years.
For readers, this is the legal angle behind a price shock they may already be seeing.
Apple recently raised prices on several MacBook and iPad models, with the MacBook Pro 1TB rising by $300, citing soaring memory and storage costs.
This is not the first time DRAM pricing has attracted antitrust scrutiny.
In the mid-2000s, Samsung and Hynix pleaded guilty in a US Justice Department investigation into DRAM price fixing.
Samsung paid a $300 million criminal fine, while Hynix paid $185 million.
Micron cooperated with the earlier probe and avoided a corporate fine, though one Micron employee later pleaded guilty to obstruction of justice.
That history gives the new lawsuit political and legal weight. But it does not make the current case easy.
A similar class action filed in 2018 against Samsung, SK Hynix and Micron was dismissed in 2020, and the dismissal was upheld by the Ninth Circuit in 2022.
Courts found that the plaintiffs had not shown enough evidence of an actual agreement among the companies.
That distinction matters as in antitrust law, companies can independently make the same business decision if they face the same market conditions.
The legal experts call it parallel conduct.
What plaintiffs usually need to prove is coordination, some form of agreement, communication or shared plan to restrict competition.
The new case tries to clear that hurdle by focusing on the timing of production cuts, the industrywide shift toward HBM, and the sharp rise in conventional DRAM prices.
Šéf Micronu Sanjay Mehrotra uvedl, že tvrdé vyjednávání zákazníků o cenách přispělo k nedostatku paměťových čipů a k podinvestování odvětví před boomem AI. Micron proto dál investuje zhruba 200 miliard USD do výroby a vývoje.
Micron CEO Sanjay Mehrotra said Tuesday that memory chipmakers aren't the only ones to blame for the current supply-and-demand imbalance, which has recently led to price hikes for smartphones, computers and other consumer electronics.
Customers who drove a hard bargain in pricing in recent years also contributed to the squeeze, Mehrotra argued, suggesting that left the industry underinvested for the artificial intelligence boom.
"Certain customers drove pricing significantly down in our industry," Mehrotra told Jim Cramer on CNBC's "Mad Money" on Tuesday. "In 2023, our prices came down to one-third of what they were."
The collapse in pricing, Mehrotra said, pushed Micron and other memory suppliers into negative gross margins, leaving much of the industry without the financial flexibility to invest in new manufacturing capacity just as artificial intelligence-driven demand began accelerating. Micron's gross margin fell to negative 7.3% in its fiscal 2023, which ended in August of that year, according to FactSet.
"Companies were losing money. They couldn't afford it," he said. "That really impacted the investment capability of the industry."
Micron continued investing through the downturn, the CEO said. "Of course, those investments were significantly cut back from the year prior." Micron's capital expenditures fell to $7.7 billion in fiscal 2023, down from $12.1 billion in the prior year.
AI-driven demand for memory chips has steadily increased since that 2023 downturn in pricing. The acceleration became more apparent last year, boosting Micron's financial performance. But it has gone to another level in 2026, propelling Micron into one of the stock market's biggest winners. The stock climbed more than 240% in the second quarter and added more than $920 billion in market value, putting Micron's market capitalization at roughly $1.3 trillion.
Mehrotra said that the supply crunch is likely to persist well beyond 2027 because new semiconductor fabrication plants take years to build and next-generation memory has become significantly more complex to manufacture. To help close the gap, Mehrotra said Micron is investing roughly $200 billion in manufacturing and R&D, including new memory fabs in Boise, Idaho and Syracuse, New York. The Boise project is furthest along, the CEO said, with the first chips due out "in the middle of next year" and increasing from there. The Boise site is slated to eventually include two fabs.
The shortage is already being felt beyond the semiconductor industry. Last week, Apple raised prices on several Mac and iPad models after CEO Tim Cook said soaring memory and storage costs had become "unavoidable," underscoring how AI-driven demand is pushing higher component costs into consumer electronics.
Micron a Sandisk těží z boomu AI, ale paměťové čipy jsou historicky extrémně cyklické. Po vyřešení nedostatku nabídky mohou jejich akcie prudce klesnout.
Memory chipmakers Micron Technology (MU +0.90%) and Sandisk (SNDK 1.93%) have been big winners from the artificial intelligence infrastructure boom. In the last three months alone, Micron shares have added 203%, and Sandisk shares have added 217%.
Today, most Wall Street analysts think Micron remains undervalued, but the consensus says Sandisk is too expensive. The target prices below come from The Wall Street Journal.
Micron's median target price of $1,585 per share implies 46% upside from the current share price of $1,085. Sandisk's median target price of $1,750 per share implies 12% downside from its current share price of $1,980 per share. Unfortunately, history offers a much less optimistic perspective. Memory chipmakers have traditionally been prone to boom-and-bust cycles. Assuming the trend is still intact, we are moving toward the next collapse, and it could drag shares of Micron and Sandisk much lower. Here are the important details.
Image source: The Motley Fool.
Memory chipmakers are benefiting from an unprecedented supply shortage driven by demand for AI Central processing units (CPUs) and graphics processing units (GPUs) are essential parts of the artificial intelligence hardware stack. CPUs are the brains that run applications, and GPUs speed up complex tasks by offloading repetitive mathematical calculations. Both types of chips require memory.
Meera Pandit, global market strategist at JPMorgan Chase, explains:
"CPUs store information in NAND, or long-term memory, and use dynamic random access memory (DRAM), or working memory, to perform tasks. For example, HBM, or high bandwidth memory, is a special kind of DRAM used to feed GPUs data fast enough to keep them busy."
Today, memory chip manufacturers cannot keep pace with the unprecedented demand as hyperscalers rush to build AI infrastructure. The supply shortage is so severe that NAND and DRAM prices have increased 200% and 300%, respectively, in the past year. That has led to tremendous financial results for Micron and Sandisk.
Micron is the third-largest supplier of DRAM and NAND memory. In the May quarter, sales increased 345%and non-GAAP net income increased by more than 1,200%. Guidance for the current quarter implies sales will increase 340% and adjusted net income will increase by more than 900%. Sandisk is the fifth-largest supplier of NAND memory. In the March quarter, sales increased 251%, and non-GAAP net income was $23.41 per diluted share, up from a loss of $0.31 per diluted share in the prior year. Guidance for the current quarter implies sales will increase 320% and adjusted net income will increase by more than 10,700%. Those strong financial results explain why both stocks have performed so well lately. But the memory chip market has historically been defined by boom-and-bust cycles. Assuming that trend is still intact, shares of Micron and Sandisk could crash at some point in the future.
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History says Micron and Sandisk will drop sharply when the current memory chip supply shortage is resolved Many semiconductor companies exhibit some degree of cyclicality, meaning sales rise and fall as demand expands and contracts. But memory chips have historically been the most cyclical category in the broader semiconductor industry.
That's because most NAND and DRAM chips are interchangeable commodities, so suppliers compete mostly on price. Memory chips are also very expensive to produce, so suppliers modify output to match demand. Those forces create a back-and-forth where periods of limited supply (and price hikes) are followed by periods of excess supply (and price cuts).
The last boom-and-bust cycle played out during the COVID-19 pandemic. Demand for personal computers, tablets, and video game consoles spiked as remote work and social distancing became commonplace. Initially, limited memory chip supplies led to higher prices, but manufacturers eventually overcorrected, and prices fell as consumer behavior normalized in 2022 and 2023.
What happened to memory chip stocks? Sandisk was a subsidiary of Western Digital until early 2025, so no company-specific information is available. But shares of Western Digital and Micron dropped 60% and 50%, respectively, from their 2022 levels. Both memory chip companies reported negative earnings in 2023. And neither stock achieved a new high until 2024.
This time around, Wall Street expects memory chip sales to peak in 2028. After that, Micron's adjusted earnings are projected to decline 27% in fiscal 2029 (ends in August), and Sandisk's adjusted earnings are projected to decline 54% in fiscal 2029 (ends in June).
Today, Micron trades at 24 times earnings, while Sandisk trades at 67 times earnings. Both multiples seem reasonable when compared to the companies' reported earnings growth. But investors need to account for a potential decrease in earnings in the next few years. In that context, both stocks could drop sharply when the current memory chip cycle passes its peak.
Globální nedostatek RAM tažený poptávkou po AI datacentrech zdražuje zařízení a úleva nemusí přijít dříve než v roce 2028. SK Hynix, Micron a Samsung mají malou motivaci trh uvolnit.
A recent This Week in Tech (TWiT) episode titled “Flock of SQLs,” explored an unintended consequence of the AI boom that feels meaningful for semiconductor and consumer hardware stocks. A global RAM shortage driven by AI data center demand is forcing device makers to raise prices. The three dominant memory suppliers, SK Hynix, Micron, and Samsung, have little incentive to relieve the squeeze, and meaningful relief may not arrive until 2028. The panel pinned the trouble on hyperscalers’ demand for DRAM and high-bandwidth memory for AI training and inference, and their ability to outspend PC and console OEMs.
Why Consumer Electronics Are Getting More Expensive Apple (NASDAQ:AAPL | AAPL Price Prediction) recently raised its prices by as much as $200 across its lineup. Daniel Rubino characterized this as Apple’s second price hike, with the first coming in March. Jennifer Pattison Tuohy flagged price increases on older devices like the Apple TV and HomePods. The panel said the Apple iPhone, Apple Watch, and AirPods appear exempt for now, likely because Apple secured supply in advance, though panelists still expect expensive new iPhones in September.
On the Microsoft (NASDAQ:MSFT) side, the panel cited the Xbox climbing from $499 toward $799, a hardware reset for Microsoft attributed to memory cost pressure. Valve, makers of the Steam Machine, reportedly told the panel that RAM suppliers gave them a quoted price “or they wouldn’t talk to us again.” Leo Laporte separately suggested, as his own speculation, that Apple may be lobbying the federal government to lift restrictions on a Chinese chipmaker as part of an effort to find more supply.
Why the Memory Shortage Could Last for Years Dan Patterson described a textbook supply squeeze on the episode. The three dominant memory suppliers, SK Hynix, Micron, and Samsung, are locking buyers into multi-year deals, with Micron pushing 16 companies into five-year contracts. New fabs cost upward of $10 billion and take five-plus years to build, so the incumbents have no commercial reason to flood the market.
The financials at Micron Technology (NASDAQ:MU) line up with that thesis. In fiscal Q3 2026, the company reported revenue of $41.46 billion, a year-over-year jump of 345.7%, with non-GAAP EPS of $25.11 and GAAP gross margin of 84.6%. The Cloud Memory segment alone delivered $13.77 billion. Guidance for Q4 calls for revenue of $50.0 billion ± $1.0 billion and EPS of $31.00 ± $1.00. CEO Sanjay Mehrotra told investors that “Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era.”
On the earnings call, Mehrotra warned that “we continue to expect supply and demand for both DRAM and NAND to remain tight beyond calendar 2026,” and noted Micron can fulfill only “50% to two-thirds” of some key customers’ demand. New U.S. and Singapore capacity is not slated to ship meaningful volume until mid-calendar 2027 and 2028.
What It Means for Investors The key question is how long the memory shortage lasts. The TWiT panel believes relief is unlikely before 2028, while Micron management has already warned that DRAM and NAND markets should remain tight beyond 2026. If AI infrastructure spending continues at its current pace, memory makers could maintain strong pricing power for years to come. If hyperscalers find ways to reduce memory demand or new manufacturing capacity ramps faster than expected, those tailwinds could begin to fade.
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Akcie Micronu klesly po oznámení, že Samsung Electronics a SK Hynix plánují investovat 800 bilionů wonů, tedy zhruba 518,6 miliardy dolarů, do nových polovodičových center v Jižní Koreji. Akcie byly zhruba o 1 % níže.
Micron Technology MU shares fell on Monday after South Korea unveiled plans for a massive new semiconductor investment program.
Shares of Micron were down about 1% at $1,117.19 after declining 6.7% on Friday.
The pullback came as South Korea's industry minister said Samsung Electronics and SK Hynix plan to spend a combined 800 trillion won, or approximately $518.6 billion, to develop new semiconductor manufacturing hubs in the country's southwest region.
The announcement underscores the intensifying race among the world's leading memory-chip producers to capture a larger share of the booming artificial intelligence market.
Micron, Samsung, and SK Hynix are the dominant suppliers of high-bandwidth memory (HBM) chips, a critical component used in advanced artificial intelligence systems developed by companies such as Nvidia.
Investors initially appeared concerned that the massive spending commitments could eventually increase competition in the sector.
However, the long-term impact may be limited in the near future. Large semiconductor fabrication facilities typically require years to construct and ramp into production.
Micron's own $100 billion semiconductor manufacturing project in New York, announced in 2022, is not expected to begin production until 2030.
The selloff also comes despite Micron recently delivering one of its strongest earnings reports on record as demand for AI-related memory products continues to accelerate.
Last week, the company reported fiscal third-quarter revenue of $41.46 billion, more than four times higher than the $9.3 billion generated in the same period a year earlier.
Revenue exceeded analyst expectations of nearly $36 billion, according to LSEG consensus estimates.
Management also provided a strong outlook, forecasting revenue of approximately $50 billion for the current quarter, compared with $11.3 billion during the same quarter last year.
The results reinforced investor confidence that supply constraints and growing AI infrastructure spending continue to support pricing across the memory market.
Following the earnings report, several Wall Street analysts raised their forecasts for Micron shares.
Among the most bullish was Barclays analyst Thomas O'Malley, who increased his price target by 70% to $2,000 from $1,175 while maintaining a Buy rating.
The revised target was based on a higher earnings outlook for fiscal 2027.
O'Malley raised his fiscal 2027 earnings-per-share estimate to $166.74 from $106.77 previously.
A key factor behind the upgrade was Micron's expanding use of supply agreements, or SCAs.
According to O'Malley, Micron disclosed stronger-than-expected details about these agreements, including both customer participation and revenue commitments.
The analyst said Micron has signed agreements with 16 customers across data center, consumer, and automotive markets, including four large customers and three medium-sized customers.
Most agreements run for five years between 2026 and 2030, while automotive contracts generally span three years.
O'Malley noted that the agreements typically include fixed pricing or pricing ranges, while still allowing for higher pricing on new product launches.
Currently, the signed agreements represent roughly 20% of Micron's DRAM volume and approximately 33% of NAND volume.
Micron expects more than half of its future revenue to eventually come from these agreements once the program is fully implemented.
According to O'Malley, 14 of the 16 signed agreements carry cumulative minimum revenue commitments totaling approximately $100 billion over their duration, with the potential for additional upside if industry supply remains constrained.
The analyst argued that the agreements provide meaningful downside protection while preserving exposure to further gains from continued AI-driven demand and favorable memory pricing conditions.
Micron oznámil rekordní fiskální Q3 s hrubou marží 84,9 % a tržbami 41,456 miliardy USD, protože poptávka po DRAM a NAND dál výrazně převyšuje nabídku. Apple zároveň uvedl rekordní březnové čtvrtletí s tržbami 111,184 miliardy USD, ale upozornil na závislost na dodavatelích komponent.
Micron Technology (NASDAQ: MU | MU Price Prediction) and Apple (NASDAQ: AAPL) just reported earnings that expose who holds the AI era’s supply chain leverage. Micron posted a record fiscal Q3 with an 84.9% non-GAAP gross margin. Apple delivered its best March quarter ever at $111.184 billion while flagging reliance on third parties for components as a core risk.
HBM Inhales Wafers. iPhone 17 Carries Cupertino. Micron’s quarter was a memory squeeze made visible. Revenue hit $41.456 billion, up 345.72% year over year, with DRAM prices up in the low-60s% range. CEO Sanjay Mehrotra told investors “DRAM and NAND industry demand continues to significantly exceed industry supply” and that tightness extends beyond calendar 2027. HBM4 is already in volume, with over $1 billion in HBM4 revenue shipped.
Apple leaned on the consumer franchise. iPhone revenue reached $56.994 billion, Services hit an all-time high at $30.976 billion, and Tim Cook credited “extraordinary demand for the iPhone 17 lineup“. Gross margin landed at 46.9%, healthy for hardware but a fraction of Micron’s number.
Floor Pricing vs. Sticker Shock The real story sits in Micron’s contracts. Mehrotra disclosed 16 Strategic Customer Agreements covering roughly 20% of DRAM volume and one-third of NAND volume, with RPO of approximately $100 billion. Crucially, “gross margins at the floor will be well beyond the peaks we experienced in prior cycles.” That is a polite way of saying customers signed away the downside.
Apple sits on the receiving end. According to industry context, Cupertino has been pressured to accept higher memory prices to defend hardware margins from the memory tax. The buyback machine is enormous, with a fresh $100 billion buyback authorization, yet the input costs still flow through Boise.
Lens Micron Apple Gross Margin 84.9% 46.9% Core Bet HBM4 and SCA lock-ins iPhone 17 and Services Key Vulnerability Lead-customer concentration Consumer sticker shock The iPhone 18 Cycle Will Test Both Polymarket pegs 96.2% odds on an iPhone 18 launch in 2026, meaning Apple’s next mass build hits during the tightest memory window in years. I will be watching whether Micron’s Q4 revenue guide of $50.0B and EPS of $31.00 holds as hyperscaler order books refresh, and whether Apple’s Services moat can mask hardware margin compression once consumers see the new price tags.
Why the Supplier Looks Structurally Advantaged, With Caveats For exposure to the side dictating terms in this cycle, Micron looks structurally advantaged right now. The $100 billion RPO floor and forward P/E near 7x tell me the cash flow is not fully priced in yet, even after a 296.92% year-to-date move. Apple offers a steadier profile: a $100 billion buyback and Services growth cushion the input shock. Both names carry downside risk if hyperscaler capex blinks. Memory cycles always end. This one just has unusually strong contractual scaffolding.
Micron uvedl, že umělá inteligence zásadně mění trh s paměťmi, a hlásí 16 strategických zákaznických dohod s podmínkami take-or-pay v hodnotě asi 100 miliard USD a 22 miliard USD v zákaznických zálohách a souvisejících závazcích. HBM podle firmy pokryje v roce 2026 jen 50 % až dvě třetiny poptávky.
Three times the current price would put Micron Technology (NASDAQ:MU | MU Price Prediction) somewhere around $3,000 a share. That is a number that sits above every published Wall Street target on the stock. The only way there runs through a memory supercycle that lasts longer and runs hotter than even bulls currently model. Let’s take a look at how Micron could get there, even though Goldman Sachs has a sharp counter to the whole exercise.
The June quarter that re-rated DRAM and HBM Micron’s fiscal third quarter, reported June 24, forced analysts to redraw their spreadsheets. Revenue came in at $41.456 billion, up 345.72% year over year from $9.30 billion. Non-GAAP EPS landed at $25.11 against a $20.2843 consensus. GAAP gross margin printed 84.6%, against 37.7% a year earlier. Operating cash flow of $25.388 billion in a single quarter argues for structural change beyond a normal cyclical bounce.
CEO Sanjay Mehrotra was direct about why. “The memory industry has been structurally transformed by the proliferation of AI.” Management has signed 16 strategic customer agreements with take-or-pay terms that represent roughly $100 billion in remaining performance obligations and projected $22 billion in customer cash deposits and related commitments.
The strategic supply agreement with Anthropic disclosed June 22, 2026 is the headline example. Mehrotra also said HBM can fill only 50% to two-thirds of demand in 2026.
The bull thesis writes itself from there. Micron is one of only three HBM suppliers, alongside SK Hynix and Samsung. It crossed $1 trillion in market cap in May. Year to date the stock is up 296.92%. Q4 guidance of $50 billion in revenue and $31.00 in non-GAAP EPS implies the trajectory is accelerating.
What a 3x from here actually requires At roughly $1,046.96 on June 29, a 3x outcome puts shares near $3,000. Every sell-side target sits below that. UBS is the Wall Street high near $1,625. Bank of America, Needham, Stifel and TD Cowen cluster between $1,300 and $1,600. Post-earnings, Susquehanna and DA Davidson have pushed to $2,000, which is the most aggressive published number on the desk and still well short of the headline scenario.
To get to $3,000, you need a stack of three things to break right. First, EPS power has to climb past the $31.00 ± $1.00 Q4 guide into a sustained run rate few analysts will underwrite today. Second, the multiple has to hold or expand, even though the trailing P/E already sits around 26x and the forward P/E near 7x reflects estimates that have not yet caught up to guidance.
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Third, the take-or-pay contracts have to do what Mehrotra claims, which is convert memory into something closer to a utility deserving a premium for predictable cash flows. Each of those is defensible. Obviously, none is guaranteed.
The bear case Goldman is making Goldman Sachs sits at roughly $900. Their argument is that today’s near 85% gross margins represent a cycle peak that will normalize lower. Memory has always been a synchronized capacity business, and SK Hynix, Samsung and Micron are all spending.
Micron itself guided full-year FY2026 capex to approximately $27 billion, with ID1 on track for first wafer output in mid-calendar 2027 and ID2 in late-calendar 2028. When that bit supply lands, even strong AI demand will compress pricing power. CFO Mark Murphy effectively conceded the point on the call, saying “we are at margin levels where incremental price yields less gross margin expansion.”
There is also concentration risk. Lead-customer dependence on HBM4, hyperscaler research into memory compression techniques that could cut usage by up to 40x, and the historical track record of memory cycles ending badly all sit on this side of the ledger.
The verdict The fair read is that Micron is a different company than it was 24 months ago, and the multi-year contracts genuinely change the cyclicality argument. A double over a few years is defensible on the numbers in hand.
A triple requires the supercycle to extend deep into 2028 and beyond, with margins holding far above prior peaks. Bulls have current data. Bears have cycle history. Both are right until one of them is not.
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SummaryMicron delivered another record-breaking quarter, with Q3 revenue surging to nearly $41.5 billion on exceptional pricing strength.Non-GAAP gross margins soared to nearly 85%, more than doubling year-over-year, driving adjusted EPS to $25.11 versus $1.91 last year.Management guided Q4 revenue to $50 billion, well above consensus, with gross margins expected to rise further to 86% as price increases moderate.MU generated $18.3 billion in adjusted free cash flow, reduced debt by 40%, and plans to return 100% of excess cash to shareholders over time. Tim Robberts/DigitalVision via Getty Images
As companies try to pivot to a future of Artificial Intelligence, there have been a number of clear winners in the market. One of the biggest has been Micron Technology, Inc. (MU), with
38.33K Followers
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.
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Micron těží z AI boomu: v posledním čtvrtletí tržby meziročně vzrostly z 9,3 miliardy USD na 41,5 miliardy USD a provozní zisk z 2,2 miliardy USD na 33,3 miliardy USD. Klíčové je, zda si udrží vysoké marže i v dalších letech.
Micron (MU 6.59%) stock has delivered extraordinary returns over the past year and a half. After a rally of more than 1,200% since the start of 2025, many investors will naturally assume the easy money has already been made on this stock. That may prove true.
But investors should remember something important: A stock does not become a bad investment simply because it has gone up sharply in price. The more relevant question is not about how much Micron stock has risen. It's about whether Micron can keep growing its profits. If the answer is yes, the stock could still have room to run.
Image source: Getty Images.
The stock doesn't need to get more expensive Many investors assume a stock can only rise significantly if investors become even more excited about it. That isn't always the case.
Imagine a company earns $10 billion in annual profits and investors value the business at $200 billion. That would give it a price-to-earnings ratio of 20. If profits eventually rise to $20 billion and the market keeps putting that same valuation on the company, its market cap would rise to $400 billion.
That hypothetical stock would have doubled even though investors had not become any more optimistic about the business. Rather, the business would have become more valuable because its profits rose.
Therein lies the basic bull case for Micron. If the company can continue to grow its profits, the stock can keep rising even if the valuation remains unchanged.
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The bull case for why profits could continue to grow Micron sits at the center of one of the largest technology spending booms in decades.
Companies around the world are investing heavily in artificial intelligence infrastructure. The data centers they are building and equipping need capacious quantities of advanced memory to effectively handle the workloads involved in training and running increasingly powerful AI models. That surging demand has left the entire memory industry short on supply, which has helped Micron and its peers grow revenue and profits.
In the latest quarter, Micron's revenue more than quadrupled year over year from $9.3 billion to $41.5 billion, while operating profit surged more than tenfold from $2.2 billion to $33.3 billion.
At the same time, Micron is selling more of its most advanced memory products -- such as high-bandwidth memory -- for AI applications. That will help the company generate even greater profits from each dollar of revenue.
If AI infrastructure spending remains strong and data center clients continue buying premium memory products, Micron could sustain its current levels of profitability or keep growing its earnings over the next several years.
That possibility helps explain why some investors believe the stock can continue climbing even with a massive rally in behind it.
The real question investors should focus on While higher profits are desirable, the key question is not whether Micron can grow profits next quarter, but whether it can keep its profit margins high over the long term -- say, for the next five to 10 years.
That distinction matters. Many companies experience a few great years. But far fewer companies maintain strong profits for a decade or longer.
If Micron can continue earning more money year after year, the stock could still deliver attractive returns, even after its recent rally. On the other hand, if today's high margins prove temporary, the outcome will look very different.
What could go wrong? This is where investors need to be careful.
The memory industry has a long history of boom-and-bust cycles. Periods of strong demand often lead to strong profits. Strong profits encourage memory makers to expand their production capacity. But with multiple competitors following the same playbook at the same time, this has repeatedly led to the industry building capacity in excess of demand. When supply eventually catches up, their pricing power dissipates, and profits slide.
Micron has experienced this pattern over and over again across the decades. So the risk is not that the demand from the AI build-out will suddenly disappear. The risk is that the current situation represents an unusually good phase for sellers in a still-cyclical market rather than a new normal.
If Micron and its competitors increase production (which they are doing) and memory supply catches up with demand, Micron could face pressure on both pricing and profits.
What does it mean for investors? Can Micron stock double again? I think there's a good chance it can.
But investors should focus less on the stock price and more on the company's ability to keep growing profits. If Micron continues to benefit from AI spending and successfully expands its higher-margin memory business, earnings could continue to move higher. And if earnings keep growing, the stock could follow.
In other words, the most important question isn't whether Micron stock has already risen too much. It's whether the company can keep making more money, and for how long.
Those answers will likely determine where the stock will head next.
Jižní Korea spustila rozsáhlé investice do čipů za 800 bilionů wonů, tedy asi 518 miliard dolarů, což může časem zvýšit nabídku DRAM a HBM. Pro Micron to není okamžitá hrozba, ale tlak na cenovou sílu může později vzrůst.
Micron stock NASDAQ:MU is back in focus after South Korea unveiled a massive semiconductor expansion led by Samsung Electronics and SK Hynix.
For now, the plan is less a direct threat to Micron than a validation of the theme behind its rally: AI memory has become scarce, valuable and strategically important.
But the harder question is, if Samsung and SK Hynix spend hundreds of billions of dollars on new DRAM and high-bandwidth memory capacity, could today’s shortage eventually turn into tomorrow’s supply problem?
Micron’s latest results gave strong signals as the company delivered a blowout quarter, helped by AI demand, high-bandwidth memory shortages and strong pricing across the memory market.
More importantly, Micron showed that customers are no longer treating memory as a routine chip input.
They are trying to lock it in.
Micron has signed $22 billion in strategic customer commitments across data centre, consumer and automotive markets.
These agreements include take-or-pay terms, cash deposits and pricing floors.
In plain English, customers are committing ahead of time because they do not want memory supply to become the bottleneck that slows their AI buildouts.
Daniel Newman, CEO of Futurum Group, told Reuters that the scale of the AI buildout has been underestimated, and that memory should keep commanding “premium pricing” while supply remains constrained.
That is the core Micron bull case, as AI demand is running faster than supply, and MU is one of the few companies able to serve that market at scale.
But there is a catch. Analysts say Micron’s bull case still rests heavily on a tight memory market, and if fresh supply starts to return, pricing power could be the first part of the story to come under pressure.
South Korea’s new chip push is not aimed at Micron directly, but it changes the supply conversation.
Samsung Electronics and SK Hynix are preparing to invest 800 trillion won, or about $518 billion, in new chip fabrication sites as Seoul tries to cement the country’s lead in AI memory.
The wider plan is tied to President Lee Jae Myung’s industrial strategy, which aims to build semiconductor strength beyond existing hubs around Seoul.
For Samsung, the investment is partly a comeback strategy. The company remains one of the world’s biggest memory players, but SK Hynix and Micron have moved faster in high-bandwidth memory, the high-margin chip category used alongside AI processors.
The analysts at KB Securities-Jefferies noted that if Samsung qualifies successfully for next-generation HBM, the supplier structure could shift more toward SK Hynix and Samsung because of Samsung’s manufacturing capacity.
SK Hynix, meanwhile, is trying to defend the AI-memory crown it has built through Nvidia-linked HBM demand.
As per analysts, its customized AI memory has “fundamentally changed” industry economics and helped SK Hynix become the market leader.
For Micron investors, Korea’s $518 billion chip blitz is not an immediate sell signal.
As per experts, the new fabs will take years to build, and HBM qualification is difficult.
Customers do not switch suppliers overnight, and AI demand is still running ahead of available supply, which is why Micron has been able to secure long-term commitments and pricing protections in the first place.
The risk seems to be more about expectations.
Micron’s valuation has expanded because investors believe memory scarcity can last longer than in past cycles.
If Samsung and SK Hynix convince the market that a credible wave of new DRAM and HBM supply is coming after 2027, investors may start discounting weaker pricing power before the capacity actually arrives.
SK Hynix plánuje příští měsíc debut na Nasdaqu prostřednictvím ADR a může získat více než 29 miliard USD. Peníze chce použít na nové továrny a vybavení, což může zvýšit nabídku paměťových čipů a vyvinout tlak na ceny.
Massive demand for memory chips for artificial intelligence (AI) training and inference has been a boon for the three major memory chipmakers. Shares of Micron Technology (MU 6.59%) have climbed over 850% in the past year, while its Korean competitors SK Hynix and Samsung Electronics are up nearly 900% and 500%, respectively, in the same period. All three have benefited from a massive supply/demand imbalance, which has allowed them to charge record-high prices for their products.
Now SK Hynix is making a move that should be a warning to Micron investors and the memory market in general. The company will list American depositary receipts on the Nasdaq stock exchange next month. The offer could raise over $29 billion. Here's why Micron investors need to pay attention.
Image source: The Motley Fool.
A massive capital raise for Micron's biggest competitor While we're talking about trillion-dollar companies, make no mistake: $29 billion is still a huge amount of money to raise from the public market. Few other companies have ever raised that much at one time from a stock offering.
That capital has to come from somewhere. With Micron being the only one of the big three memory chipmakers with U.S.-listed shares, it may feel the brunt of the shift in capital as investors look to broaden exposure in the memory market.
The bigger thing Micron investors need to worry about, however, is exactly what SK Hynix plans to do with all that cash. In its SEC filing, management said it intends to use all proceeds to construct new production facilities in Korea and to purchase new fabrication equipment.
Those facilities could start producing new chips before the end of 2027, with a rapid ramp-up in capacity through 2030. It's also constructing an advanced chip packaging facility in Indiana that's set to open in 2028.
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SK Hynix's expansion plans could rapidly increase the total supply of memory chips in a market where products are mostly commoditized. SK Hynix chips can be used in place of Micron chips. As a result, if SK Hynix has more chips to sell, it could gain market share and put pressure on pricing.
Of course, Micron isn't standing still. It's building two factories in Idaho, which are set to open in 2027 and 2028. It also acquired a site in Taiwan where it expects to start production in mid-2027, and it's planning additional projects set to start production later this decade. Overall, management expects supply constraints to persist through the end of next year.
As more supply comes online to meet demand, prices will fall. Overall profits can continue to climb for some time, as more unit sales offset declining market prices. However, profits will eventually fall as supply growth outpaces demand growth, with SK Hynix, Micron, and Samsung all racing to build capacity. SK Hynix's capital raise could accelerate that peak.
Micron investors should exercise caution The current upward earnings cycle in the memory chip market can't last forever. Micron is already taking steps to protect itself against what could be a severe downcycle in a few years. It's signing long-term strategic customer agreements that lock in pricing at a maximum equal to its current price, while also creating a pricing floor.
Many of those agreements run through 2030, and management says they represent about 20% of its dynamic random-access memory (DRAM) chip volume. The agreements could reduce the cyclical downturn later this decade, but it also caps the upside it could generate over the next year or two from increased pricing.
With SK Hynix's aggressive build-out plans about to receive significant capital backing, Micron may be betting on an accelerated timeline toward the market's peak pricing.
The stock price has climbed to about 9 times forward earnings expectations and 8 times fiscal 2028 earnings expectations. If Micron's earnings cycle peaks, as expected, in 2028, it's currently trading for a relatively expensive multiple compared to its historic valuation. If the competition pushes that timeline forward or worsens the downcycle, it could prove way overvalued at today's price.
Nvidia (NVDA 1.42%) has become almost synonymous with the words "artificial intelligence" (AI). When people think of AI, they automatically think of this company -- and for good reason. Nvidia has generated quarter after quarter of explosive earnings growth, with revenue and profit reaching record levels, thanks to its AI products.
The company is the world's leading designer of graphics processing units (GPUs), the powerful chips used to fuel AI tasks, and has expanded across other related products, such as networking tools and enterprise software, to build complete AI systems.
Investors recognized Nvidia's strength in AI and raced to get in on this exciting growth story. The result? Nvidia stock soared more than 1,100% over the past three calendar years.
Of course, investors are always on the lookout for another stock that may perform as well. They may not have to look very far. Micron Technology (MU 6.59%) has proven itself to be an AI heavyweight, providing the memory and storage crucial for AI use. Is Micron stock the new Nvidia? Let's find out.
Image source: Getty Images.
Increasing earnings over time Micron isn't new to the technology scene. The company got its start almost 50 years ago and has served computers and other devices with a portfolio of memory and storage options. This helped the company increase earnings over time, but at a much slower pace than what we're seeing today.
MU Net Income (Quarterly) data by YCharts
Though Micron has seen business ebb and flow in the past, as is normal in the cyclical semiconductor industry, the current surge is a whole new ball game. Needs linked to AI have supercharged growth, as we've seen in recent quarters. The latest is the perfect example, with revenue more than quadrupling to reach past $41 billion and net income jumping from $1.8 billion in the year-earlier period to an eye-popping $28 billion.
On top of this, Micron says that demand is surpassing supply, and the company expects this to continue beyond this calendar year. This supply situation is due to strong AI demand as well as general supply constraints that are impacting the entire memory industry. These include various factors, including the time it takes to ramp up manufacturing facilities and obtain permits, and a complex regulatory framework.
While this is a challenge for Micron, it also means that competition isn't a major problem: There is more than enough business for each of the top players to generate growth.
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How Micron resembles Nvidia Now, let's consider how Micron may resemble Nvidia. Like Nvidia, it plays a key role in the AI growth story. The company offers the DRAM, NAND, and HBM memory products that are crucial to the functioning of the technology. And we can imagine that, as the use of AI agents increases, the need for memory power may become even greater. Agentic AI, seen as the next AI growth driver, involves AI taking action, often through several steps, to solve problems.
Also like Nvidia, Micron has been around for decades, perfecting its products, and today, both companies have achieved extremely high profitability on sales. In fact, Micron's gross margin just surpassed that of Nvidia. Micron's reached more than 84% in the recent quarter, while Nvidia's gross margin tops 74%. So not only are these players benefiting from revenue growth in the AI boom, but they are translating that into significant profit.
One area that separates the two is the following: Nvidia is the AI chip leader and has expanded into related products, as mentioned above. Micron remains a memory and storage specialist -- and in AI, though Micron is growing fast and is among the leaders, South Korea's SK Hynix often is seen as the AI memory giant.
This doesn't necessarily mean Micron won't take the path of Nvidia, from an earnings and stock performance perspective. It does mean the company might come with a bit more risk, though.
Now, let's consider stock performance. Micron is already well on its way along an Nvidia-like path. The stock has soared more than 800% over the past year. So I think Micron might already be the next Nvidia -- and the demand and revenue growth Micron has seen in recent months suggest the stock still may have plenty of room to run over the long term.
AMD koupila MEXT, jejíž software má optimalizovat NAND flash a snížit potřebu drahé DRAM při zátěži AI. Pro Micron ani Sandisk to podle článku nepředstavuje významnou hrozbu.
About two weeks ago, Advanced Micro Devices announced the acquisition of MEXT, a start-up that has built artificial intelligence (AI)-driven software designed to make NAND flash behave like dynamic random-access memory (DRAM).
The technology uses predictive algorithms to identify frequently accessed data and move it between flash storage and high-speed memory in real time, reducing the amount of expensive DRAM a data center needs to run AI workloads at scale. According to MEXT's own press release, the software can cut memory costs by nearly half while expanding usable memory capacity by two to four times.
For investors in Micron Technology (MU 6.59%) and Sandisk (SNDK 10.45%), the knee-jerk read is obvious: If AMD can teach flash to behave like DRAM, demand for high-bandwidth memory contracts declines. The knee-jerk read is terribly wrong.
What MEXT actually does (and doesn't do) MEXT's technology operates in the software tier between existing storage and compute. It doesn't replace DRAM or HBM. Instead, it reduces the amount of high-speed memory certain workloads require by optimizing what lives in it at any given moment. That's a meaningful efficiency gain for enterprise customers running general-purpose AI workloads, where memory is a cost constraint.
What it cannot touch is the physics of training large AI models and running inference at the performance levels that hyperscalers require. An Nvidia Blackwell graphics processing unit (GPU) demands HBM4 not because no one has tried to work around it, but because the bandwidth requirements of training trillion-parameter models are architectural constraints, not software problems. No predictive tiering algorithm changes what the silicon needs.
MEXT is a tool for enterprises trying to stretch existing infrastructure. It is not a substitute for the memory products that Micron and Sandisk sell to massive tech companies.
Image source: Getty Images.
Micron's position is structurally insulated Micron Technology's entire 2026 HBM4 production is sold out under binding multi-year contracts. At COMPUTEX 2026 in May, the company laid out an end-to-end AI memory portfolio spanning data center to intelligent edge, all in high-volume production. Fiscal first-quarter 2026 revenue hit $13.64 billion, up 57% year over year, with gross margins around 56%, driven by HBM pricing power that comes from contracted scarcity.
The reason Micron's HBM business is immune to MEXT is the same reason it's immune to most software-layer interventions: The customers buying it aren't as price-sensitive as enterprise IT buyers. Hyperscalers building AI training clusters are optimizing for bandwidth and compute density, not TCO reduction. That's a different buyer with different priorities.
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Sandisk is benefiting from the same trend AMD is targeting Here's the counterintuitive part: MEXT's technology, which moves data between flash and DRAM, depends on high-performance NAND flash to function. The better and faster the flash tier, the more effective the tiering software becomes. Sandisk is the company building the flash tier.
In third-quarter fiscal 2026, Sandisk's data center segment revenue surged 233% sequentially to $1.47 billion, driven by enterprise SSDs built specifically for AI workloads. Full-year revenue jumped 61% to $3.03 billion, beating Wall Street consensus by 12%.
Sandisk's stock is up roughly 750% year to date at the time of this writing, the best-performing large-cap technology stock in the S&P 500 so far in 2026. AMD's bet on memory optimization software is, at its core, a bet that NAND flash will absorb more of the workloads traditionally handled by DRAM. That's a thesis that requires better, faster NAND -- which is exactly what Sandisk makes.
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So no, neither Micron nor Sandisk is under meaningful threat from the MEXT acquisition. The market made that clear today, with both stocks flirting with 20% gains this week on June 25. The real risk for both has always been the same one that defines memory investing: If AI infrastructure spending slows faster than new capacity comes online, pricing power compresses, and margins follow.
Both companies are going to be just fine. AMD's MEXT acquisition is a smart move for its data center business, but it doesn't change the fundamental thesis for Micron or Sandisk. If anything, it might be a tailwind.
Apple podle Financial Times lobbuje za povolení nakupovat paměťové čipy od čínské CXMT. Pro Micron to ale znamená jen omezené riziko, protože CXMT nevyrábí HBM.
The AI boom has transformed one of the semiconductor industry’s most cyclical businesses into one of its tightest markets. Memory chips, once plagued by oversupply and collapsing prices, have become one of the biggest bottlenecks for AI infrastructure.
That shortage has helped lift Micron Technology (NASDAQ:MU | MU Price Prediction), Samsung Electronics, and SK hynix to record profitability as demand for premium memory far exceeds supply. It is in this environment that Apple (NASDAQ:AAPL) is reportedly lobbying the Trump administration for permission to buy memory chips from a blacklisted Chinese supplier.
Micron investors are worried that if a new supply channel is opened, the memory chipmaker’s pricing power, margins, and ultimately its stock could be pressured. However, they needn’t be concerned.
Apple’s Problem Isn’t Micron’s Problem The Financial Times reported that Apple has been lobbying several federal agencies and officials for approval to purchase memory chips from China’s ChangXin Memory Technologies (CXMT), a company placed on the U.S. Entity List because of its ties to the Chinese government and military. Buying from CXMT is reportedly not outright illegal, but doing so without government approval could expose Apple to political backlash and reputational damage.
Apple’s motivation is easy to understand. The company just announced price hikes of roughly 20% on several MacBook and iPad models after CEO Tim Cook said Apple could no longer absorb rising component costs. Its stock suffered its largest single-day loss in more than a year. Memory has become one of the fastest-growing expenses inside consumer electronics, and Apple has long used its enormous purchasing power to squeeze suppliers for lower prices.
Some investors fear that if Washington grants Apple permission, CXMT could become a new source of supply that weakens Micron’s positioning.
Here is where their markets actually stand:
Company Primary Memory Focus HBM Production Micron DRAM, NAND, HBM Yes Samsung DRAM, NAND, HBM Yes SK hynix DRAM, NAND, HBM Yes CXMT Commodity DRAM No CXMT manufactures conventional DRAM products, including DDR5 memory for PCs and servers, LPDDR5X and LPDDR4X for smartphones and mobile devices, and enterprise RDIMM and MRDIMM modules. What it does not manufacture is high bandwidth memory (HBM), the premium chips powering Nvidia‘s (NASDAQ:NVDA) AI accelerators and the data centers behind today’s AI spending boom.
That distinction matters because HBM carries much higher margins than commodity DRAM, and it remains the product driving Micron’s earnings growth.
Apple Helped Create Today’s Memory Shortage Surprisingly, it was Apple itself that helped create the pricing environment it now wants relief from.
During the last memory downturn, DRAM prices collapsed so far that suppliers, including Micron, saw gross margins sink into negative territory. Apple used its position as the world’s largest memory buyer to negotiate rock-bottom prices. Micron Chief Business Officer Sumit Sadana publicly criticized those negotiations, saying Apple’s purchasing tactics were “not constructive” because they discouraged suppliers from investing in new manufacturing capacity.
Many producers delayed or canceled expansion projects. Then AI arrived.
Exploding demand for AI servers rapidly consumed available DRAM capacity, while HBM production became the industry’s highest priority. Years of underinvestment left the market unable to respond quickly, producing today’s shortage and elevated pricing.
In short, Apple is dealing with consequences that were, at least in part, created by the pricing pressure it once imposed on suppliers.
Congressional Scrutiny Remains a Major Obstacle Granted, Apple could still receive government approval, but the political hurdles remain substantial.
Apple attempted something similar in 2022 when it considered sourcing memory from another blacklisted Chinese manufacturer, YMTC. Members of Congress immediately warned the company that moving forward would invite legislative repercussions. CXMT carries many of the same national security concerns, making any approval likely to receive intense congressional scrutiny.
Regardless, even if Apple succeeds, the competitive impact on Micron appears limited. CXMT competes in mainstream DRAM, while Micron’s investment dollars are increasingly directed toward high-margin HBM products where demand continues to exceed supply.
Key Takeaway Apple’s lobbying effort reflects its desire to reduce memory costs after raising hardware prices, not a shift in the competitive landscape for AI memory. CXMT may eventually become another supplier of commodity DRAM, but it does not produce HBM, the segment generating Micron’s strongest growth and profitability.
Ultimately, investors worried this development threatens Micron’s long-term outlook are focusing on the wrong part of the memory market. Apple’s search for cheaper chips says more about its own cost pressures than it does about Micron’s competitive position.
The semiconductor market has seen immense growth over the past year, and that momentum continues with Micron Technology (MU) blowing analyst expectations out of the water. Expect ETFs offering pure play exposure to the memory semiconductor industry to benefit in at least the near-term future.
Key Takeaways Micron beat analyst expectations on Wednesday, reporting EPS of $25.11 and revenue of $41.5 billion, while also raising Q4 revenue guidance to $49 billion to $51 billion. A multi-year agreement with Anthropic and soaring memory component demand from data center construction are cementing Micron’s role as a critical component in the AI infrastructure ecosystem. Numerous ETFs are benefiting from Micron’s earnings performance, including DRAM, RAM, and VLUE, which all include Micron as a top allocation. Micron Surpasses Q3 Earnings Expectations After the closing bell on Wednesday, Micron announced Q3 earnings, beating analyst expectations across the board. The company reported EPS of $25.11 and revenue of $41.5 billion, exceeding analyst expectations of $20.39 and $35.1 billion, respectively. Looking ahead to Q4, the company anticipates revenues of $49 billion to $51 billion, surpassing Wall Street expectations of $43.2 billion, according to Yahoo Finance.
On Monday prior to earnings, Micron announced a multi-year agreement with Anthropic to supply memory and storage chips to the AI developer. This deal links the demand of flagship AI models to how the infrastructure is designed, supplied, and deployed at scale.
The continued construction of data centers is driving demand for memory components known as DRAM. Micron announced DRAM revenue of $31.3 billion, beating analyst expectations of $27.5 billion.
Pure-Play Memory Strategies Capitalizing Since its inception in early April, the Roundhill Memory ETF (DRAM) has seen returns of over 150%, and inflows of $17.5 billion. The fund provides pure-play exposure to the companies driving the physical hardware of the AI sector, requiring companies to derive at least 50% of their revenues directly from the memory components industry.
DRAM maintains a highly concentrated portfolio, with three holdings — Micron (24.25%), Samsung Electronics Co (005930) (26.49%), and SK Hynix (000660) (24.26%) — accounting for approximately 75% of the fund’s assets. Micron’s recent earnings beat serves as a major driver for the fund, due to its concentrated portfolio.
For investors seeking increased exposure to the AI memory industry, Roundhill Investments recently launched the Roundhill T-REX 2X Long DRAM Daily Target ETF (RAM). With an expense ratio of 125 basis points, the fund provides leveraged exposure to DRAM, seeking to replicate 2X the daily performance of the underlying ETF, offering investors a tactical way to magnify daily returns.
Broader Funds Benefiting Among other funds with high allocations to Micron is the iShares MSCI USA Value Factor ETF (VLUE). Following the fund’s semiannual May rebalance, Micron now accounts for a 23.4% weighting in the fund, with the next highest weight being Cisco Systems (CSCO) at 4.7%.
The fund tracks the MSCI USA Enhanced Value Index, which focuses on isolating value stocks from the MSCI USA Index, with a heavy emphasis on the tech sector. The strategy employs a sector-neutral and fundamentals-based methodology, to capture value across the broader market.
Due to strong earnings and cash flow growth, Micron’s fundamental metrics, forward and trailing P/E ratio, remain relatively low at 9.11 and 23.70, respectively. This is significantly lower and more value-oriented than the broader AI market, in which a company like Nvidia (NVDA) has forward and trailing P/E ratios of 22.68 and 30.47.
For more news, information, and analysis, visit the Equity ETF Content Hub.
NVIDIA vykázala tržby 81,615 miliardy USD, meziročně o 85 %, ale akcie po výsledcích klesly o 10,38 %. Micron naopak po silném čtvrtletí z oblasti AI vzrostl o 127,9 %.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Micron Technology (NASDAQ:MU) both posted blockbuster AI infrastructure quarters, but the market reacted in opposite directions. NVIDIA sells the compute. Micron sells the memory that keeps those GPUs fed.
Comparing them now makes sense because each just told investors something different about where AI hardware spending actually lands in 2026.
Blackwell Carries NVIDIA. HBM Carries Micron. NVIDIA’s Q1 FY27 report on May 20, 2026 showed revenue of $81.615 billion, up 85.23% year over year, with Data Center alone at $75.246 billion. Networking inside that segment grew 199%, a number that says NVLink and Spectrum-X are pulling weight, not just GPUs. Non-GAAP EPS landed at $1.87.
Jensen Huang framed the moment bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Micron’s Q2 FY26 earnings report on March 18, 2026 told a wilder cyclical story. Revenue hit $23.86 billion, up 196.29%, with non-GAAP EPS of $12.20 against a $8.73 estimate. Cloud Memory revenue alone reached $7.75 billion at a 66% operating margin.
CEO Sanjay Mehrotra said memory has become “a strategic asset” for hyperscale customers, and the board approved a 30% dividend hike to back that view.
Platform Moat vs. Capacity Bet NVIDIA leans on CUDA, NVLink Fusion, and the announced Vera Rubin platform to lock customers into a full stack. Roughly half of Data Center revenue still comes from hyperscalers, and management is pushing into sovereign and industrial AI to diversify. The catch is China: zero H20 Data Center shipments this quarter, and forward guidance assumes that stays at zero.
Business Driver NVIDIA Micron Main growth engine Blackwell GPUs, NVLink networking HBM and DRAM for AI accelerators Guidance $91.0B Q2 revenue $33.50B Q3 revenue Gross margin 75.0% non-GAAP 74.4% GAAP, guiding to ~81% Micron’s bet is physical. Capex of $6.39 billion in a single quarter funds HBM capacity that order books reportedly stretch into 2027. Being the only U.S.-based memory manufacturer matters for sovereign AI buyers, and a forward P/E of 11 suggests the market still treats this as cyclical. NVIDIA’s P/E sits near 32, which is hardly cheap but reflects platform durability.
The Market Already Voted Differently Since reporting, NVIDIA shares are down 10.38% to $200.04. Micron is up 127.9% to $1,051.77, although it dropped 13.18% on June 23 ahead of its next earnings report.
Polymarket traders give Micron a 95.2% probability of beating quarterly earnings, while NVDA’s near-term crowd consensus clusters at $195 to $210. I will be watching whether Micron’s gross margin actually reaches the guided 81% and whether NVIDIA’s $119 billion in supply commitments converts cleanly.
NVIDIA for Durability, Micron for Torque For investors researching AI exposure that survives a memory price reset, NVIDIA’s profile stands out. The software moat and networking growth give the platform a second leg the bears keep underrating, even with China at zero.
For investors comfortable with cyclicality, Micron offers more torque, because HBM scarcity is real and the forward multiple still leaves room. The shared risk on both theses is a softening in hyperscaler capex guidance later this year, the one variable that pressures both stories at once.
Micron vzrostl o více než 15 % na rekord po oznámení 16 strategických smluv; 14 z nich má minimální budoucí příjmy asi 100 miliard USD. Firma zároveň zvýšila výhled tržeb na 50,0 miliardy USD.
Micron Technology Inc (NASDAQ:MU) shares soared more than 15% to a record high of around $1,208 Thursday as analysts cheered a wave of long-term strategic agreements reshaping the investment case for the memory chipmaker.
Bank of America reiterated its Buy rating and lifted its price target to $1,550 from $1,500, while Wedbush maintained its bullish stance, with both firms pointing to Micron's growing portfolio of strategic customer agreements (SCAs) as a defining development for the sector.
Micron reported fiscal third-quarter revenue of $41.5 billion, up 74% year-over-year and well above the Street's $35.9 billion estimate. Data center revenue hit an annualized run rate of approximately $100 billion.
Gross margin came in at 84.9%, topping consensus of 81.7%, while non-GAAP earnings per share of $25.11 doubled quarter-over-quarter and surpassed expectations of $20.86.
Fourth-quarter guidance was equally striking, with Micron projecting revenue of $50.0 billion against the Street's $43.6 billion estimate. Gross margin is expected to reach roughly 86%, with non-GAAP EPS guided to $31.
The headline story was not just the results but what lies ahead. Micron now has 16 SCAs in place, with 14 of those carrying cumulative minimum revenue commitments of approximately $100 billion over the remaining agreement terms. The deals include price floors and ceilings, are backed by cash deposits and financial commitments, and carry no termination provisions.
Bank of America noted the agreements currently represent about 20% of DRAM output and one-third of NAND sales, but Micron expects SCAs to eventually cover at least half of total company revenue, generating roughly $100 billion in remaining performance obligations.
"The agreements are guaranteed by cash deposits and financial commitments and do not contain provisions allowing for the termination of terms," Wedbush noted, underlining the structural shift this represents for a sector historically defined by cyclical boom and bust.
With free cash flow margins expected to approach 50-60%, both firms flagged a significant inflection in shareholder returns. Micron announced plans to return 100% of excess free cash flow to shareholders beginning in December, once CHIPS Act restrictions on certain uses of cash expire.
Bank of America said buyback activity is likely to step up materially, noting that even $32 billion in repurchases for fiscal 2027 would represent only about 25% of potential free cash flow generation. The firm sees shares implying a roughly 10% free cash flow yield at current levels.
Wedbush, meanwhile, described the quarter as a "drop the mic" moment for Micron and the broader memory trade, saying the results demonstrated that demand for NAND and DRAM continues to significantly exceed industry supply.
"With greater nervousness around the AI trade... this shows the memory and chip trade is well-intact and still in the early stages of playing out," Wedbush said, adding that it sees no cracks in AI demand on the hardware or software front.
The firm also flagged positive read-throughs for semiconductor capital equipment makers, noting Micron raised its 2026 capital expenditure forecast and signalled meaningfully higher spending in 2027.
Shares of Apple (NASDAQ:AAPL | AAPL Price Prediction) are down 6% in midday trading on Thursday, sitting near $274 after closing the prior session at $293. The slide is Apple stock’s sharpest single-day move in months and stands out against its 38% one-year gain.
The trigger came straight from the C-suite. Apple announced price increases on MacBooks and iPads, and CEO Tim Cook tied the move squarely to soaring memory and storage costs driven by AI data center buildouts. Notably, Apple left iPhone pricing untouched.
The pain is not evenly spread across the supply chain. Micron Technology (NASDAQ:MU) stock is up 16% at the same time, riding the opposite side of the same memory crunch after a blowout earnings report.
Cook Calls It a “Hundred-Year Flood” The framing came straight from Apple’s chief executive. “This is a hundred-year flood. I’ve never seen anything like it in any area in over 40 years,” Cook stated, calling the price increases “unavoidable” and noting that Apple had tried to shield customers but “the situation has become unsustainable.”
The dollar impact on Apple’s hardware lineup is notable. The MacBook Neo moves from $599 to $699, the MacBook Air from $1,099 to $1,299, and the 14-inch MacBook Pro from $1,699 to $1,999 (with the 16-inch from $2,699 to $2,999). On tablets, the iPad Air 11-inch jumps from $599 to $749 and the 13-inch iPad Pro from $1,299 to $1,499.
Cook also left the door open to additional hikes on “a number of products,” and indicated Apple is willing to deploy cash reserves to help boost memory supply, though it will not build its own memory facilities. He even suggested U.S. policymakers consider easing restrictions on working with Chinese memory suppliers.
That last point is unusual for Apple. It hints at how acute the company views the supply situation, and how few near-term levers it has to pull on component cost.
Memory Buyers Squeezed, Memory Sellers Cashing In The same shortage hammering Apple is rocket fuel for Micron and its shareholders. Micron just reported fiscal Q3 2026 revenue of $41.46 billion, with GAAP gross margin of 85% versus 37.7% a year earlier, and guided fiscal Q4 revenue to $50 billion plus or minus $1 billion.
Those are the quantitative anchors for Cook’s “flood” framing. Memory suppliers like Micron are extracting pricing power from the AI capex cycle, while memory buyers like Apple are passing some of that cost straight through to consumers. The split is unusually stark in semis today, and it reframes Apple stock and Micron stock as two sides of the same trade.
Demand Elasticity Meets Margin Protection The bears are focused on demand destruction. A $100 jump on the entry-level MacBook Neo is meaningful for price-sensitive buyers, and broader tech-sector margin pressure from persistent component inflation is a live concern. Retail sentiment on Apple has tilted bearish, with a Reddit gauge showing a sentiment score of 32 on r/WallStreetBets earlier this week.
The measured view is that loyal Apple customers will absorb most of the price increases, and that leaving iPhone pricing alone protects the company’s most important revenue line. The industry context also matters here. Microsoft, other PC makers, and console builders Nintendo and Sony have already raised their prices, so Apple joins them as the latest name to capitulate.
Apple’s recent results give it some cushion to absorb a bumpy news cycle. The company’s fiscal Q2 2026 revenue came in at $111.18 billion with EPS of $2.01, and Apple’s board authorized a fresh $100 billion buyback alongside a 4% dividend bump. Apple stock also trades at a P/E ratio of 38x, leaving little room for execution slips.
What to Watch Next The near-term tell for Apple stock is whether today’s 6% drop steadies into the close or accelerates as more sell-side notes hit. Cook’s “more hikes may come” warning leaves an open question on Apple’s pricing posture into the holiday quarter, and any guidance refresh could shift the narrative quickly.
Investors can watch for early read-throughs on demand for the higher-priced Mac and iPad lineups, plus commentary from peers exposed to the same memory squeeze. With Micron having just reset expectations on memory pricing, the next earnings cycle for hardware OEMs could surface more margin commentary in the same direction.
For now, the “hundred-year flood” line is doing real work. It explains why Apple stock is among the worst performers in mega-cap tech today and why Micron stock is among the best, and it sets the tone for how investors may want to size their exposure to memory-heavy hardware names from here.
Micron oznámil 16 zákazníků s 22 miliardami USD v zálohách v hotovosti a pětiletými take-or-pay kontrakty, což zvedlo akcie a zastavilo výprodej čipů. Firma zároveň uvedla, že napjatá nabídka potrvá i po roce 2027.
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.
Micron Technology zveřejnila konferenční hovor k výsledkům za fiskální třetí čtvrtletí 2026. V úvodu firma uvedla, že zveřejnila i tiskovou zprávu s čtvrtletními výsledky.
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
SummaryMicron Technology, Inc. delivered a blowout fiscal Q3, with revenue up 74% sequentially and 346% year-over-year, supporting my continued bullish stance.MU's forward P/E remains low at 9.4 despite a 265% YTD price surge, as earnings growth outpaces share appreciation, fundamentally supporting the rally.Pricing power, not just volume, is driving MU's results—DRAM and NAND ASPs surged while bit shipments grew modestly, signaling a structural shift in memory economics.Strategic customer agreements, robust HBM4 ramp, and diversified end-market strength suggest the current cycle remains sustainable, though MU risks from overcrowding and future oversupply must be monitored. mesh cube/iStock via Getty Images
Executive Summary Micron Technology, Inc. (MU) delivered exactly what the market needed. It did not just beat estimates. It crushed them.
Everyone held their breath. I am not going to lie, everyone was looking at Micron’s
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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.
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.
Micron vykázal rekordní výsledky za 3. čtvrtletí s rekordními tržbami, vyšší marží a silným volným cash flow díky rostoucí poptávce po pamětech pro AI. Výhled výrazně překonal odhady a firma zajistila kapacity HBM až do roku 2027.
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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Micron před dnešním konferenčním hovorem k výsledkům klesl asi o 13 %, ale analytik Rosenblattu to přičítá nervozitě investorů, ne zhoršení fundamentů. Klíčová bude hrubá marže; čeká se výhled kolem 84 %.
Shares of Micron Technology (NASDAQ:MU | MU Price Prediction) have been the subject of intense debate this week after a roughly 13% sell-off rattled holders ahead of the company’s fiscal Q3 2026 earnings, scheduled for release today, June 24, after the market close. On CNBC’s Morning Call, Kevin Cassidy, Senior Research Analyst at Rosenblatt Securities, made the case that the pullback is due to “investor jitters” rather than a fundamental break in the memory cycle.
Even after the 13% drop on Tuesday, June 23, MU last traded at $1,071.99 as of June 24, 2026, up 40.05% over one month, 268.68% year to date, and 763.64% over the trailing year. Five-year gains sit at 1,238.55%. The selloff is real, but so is the run that preceded it.
The Bull Case: Supply Discipline Is Keeping Memory Profits High According to Cassidy, the selloff was driven in part by weakness in Korean rivals Samsung and SK Hynix, which he characterized as investor jitters rather than evidence of deteriorating fundamentals. He argues that in a supply-constrained memory market with strong AI-driven demand, owning the memory names is the right trade, and profitability, not market-share grabbing, will be the dominant force for value creation.
Cassidy says Micron is comfortable with its roughly 25-30% market share and is prioritizing margin expansion over volume. He pointed to the company’s phased capacity roadmap as evidence: new fab capacity coming online in Idaho in 2027, a second Idaho fab in 2028, and mega fabs in upstate New York in 2030. Each step is deliberate, designed to avoid the overbuild that crushed the industry only a few years ago.
That memory of pain is central to his argument. Cassidy referenced the dramatic recovery from roughly negative 9% gross margin three years ago, which he says taught the industry not to overbuild. The behavioral shift, in his view, is what makes today’s cycle structurally different.
Why Gross Margin Could Decide Micron’s Next Move The single number analysts are watching with Micron’s earnings tonight is gross margin. He expects guidance for about 84%, up from roughly 81% this reporting quarter. That tracks the trajectory Micron set in its fiscal Q2 report on March 18, 2026, when the company posted revenue of $23.86 billion (+196.3% YoY), non-GAAP EPS of $12.20, and a GAAP gross margin of 74.4%. Q3 guidance called for revenue of $33.5 billion plus or minus $750 million, non-GAAP EPS of $19.15 plus or minus $0.40, and gross margin around 81%. CEO Sanjay Mehrotra at the time told investors the company expects “significant records again in fiscal Q3.”
What the Market Is Pricing Prediction markets and Reddit sentiment paint a split picture. Polymarket assigns a 96.1% probability to an earnings beat tonight, yet only a 53.5% probability that MU closes above $1,000 by month-end. Crowd consensus expects an earnings beat but a slower price recovery.
Reddit conviction tells a similar story. Sentiment scores on r/wallstreetbets and r/investing climbed as high as 81 (very bullish) on June 22, even after the selloff began. One widely upvoted post on r/options noted that “MU is pricing in some insanely abnormal panic”, drawing 136 upvotes.
What to Watch with Micron’s Earnings Tonight The biggest number to watch in Micron’s earnings report is gross margin. Cassidy expects guidance to rise toward 84%, up from roughly 81% this quarter. If Micron delivers that level of margin expansion, it would support the argument that supply remains tight and the recent selloff was driven more by investor nerves than weakening fundamentals.
Investors will also be watching for updates on high-bandwidth memory (HBM) demand, progress on the Idaho and New York fab projects, and management’s outlook for capital returns following last quarter’s 30% dividend increase. By the end of tonight’s call, investors should have a much clearer answer as to whether this week’s pullback was a buying opportunity or the start of a more meaningful reset.
Roundhill spustila pákový ETF RAM, který 2x kopíruje volatilitu DRAM a Micronu. Přichází těsně před výsledky Micronu, od nichž trh čeká pohyb kolem 10 %.
A new ETF seeking to leverage Micron's volatility has emerged – right in the nick of time
After the massive success of the Roundhill Memory ETF (DRAM) – a fund that's gathered more than $22 billion in less than three months and has more than doubled in value since its April debut – asset manager Roundhill Investments, alongside REX Shares and Tuttle Capital Management, launched a new offering on Wednesday. The Roundhill T-REX 2X Long DRAM Daily Target ETF (RAM) is a 2x levered version of DRAM that began trading at around $24 per share.
The launch capitalizes not just on the popularity of Micron Technology as a stock and options favorite among investors after a 700% one-year rally, but also the growing popularity of leveraged funds and traders' general comfort, if not preference, to be in volatile products tied to the artificial intelligence boom.
Micron Technology in the past 12 months
Micron is set to report earnings Wednesday night, and you'd be hard-pressed to find an investor that doesn't have some exposure to the stock in one form or another.
It's now the fourth-biggest holding in the $73 billion VanEck Semiconductor ETF (SMH), a 28% weight in the DRAM ETF, and 8% of the roughly $30 billion levered fund Direxion Daily Semiconductor Bull 3X ETF (SOXL). It's also among the top 10 largest companies in the S&P 500. At a market cap just below $1.2 trillion, Micron regularly trades billions of dollars in options per day, with $1.4 billion already traded in Wednesday's session.
"For the next 48 hours the market and Micron are basically the same," said Zed Francis, CIO at Chicago-based Convexitas, who runs a semiconductor options strategy.
Leveraged ETFs, the most popular of which target tech companies that have powered the bull market, bring daily rebalancing flows regularly in excess of $20 billion, according to an analysis from Barclays equities tactical strategies.
That could exacerbate swings in the market around big events like Micron earnings, where traders currently expect a 10% swing. Implied volatility in the stock is 111, the highest in the S&P 500 alongside memory peer Sandisk.
"Sometimes better to be lucky than good, but launching the day Micron reports: This is the most important earnings report for the whole market that we've seen in a while," Dave Mazza, CEO of Roundhill, said by phone.
There's also the South Korean stock market, where memory-makers SK Hynix and Samsung account for around 40% of market cap. Volatility of 92 is relatively cheaper in the iShares MSCI South Korea ETF (EWY).
On Wednesday morning, one trader in that fund put on a bullish "risk reversal" trade. They sold $1.2 million worth of the 170-strike EWY puts expiring July 17, then bought $700,000 worth of the 240-strike calls, betting on a 23% rally by the same date.
