issued Thursday, June 25, 2026 · 08:59 AM
[SEATTLE] Micron Technology, the largest U.S. computer memory chip maker, soared in late trading after its quarterly revenue forecast fell short of Wall Street expectations, suggesting growth driven by artificial intelligence remains strong.
The company said in a statement on Wednesday (June 24) that sales for the fiscal fourth quarter ending in August will be approximately US$50 billion. Analysts on average estimated it at US$43.2 billion. Excluding certain items, earnings are expected to be about $31 per share, compared to the forecast of $25.31.
The stock rose about 16% in late trading after the report was released. They’ve already more than tripled this year, outperforming every other major semiconductor stock.
Micron delivers results at a sensitive time for the AI industry. Shares of chip makers and other technology companies had been falling in recent days on worries that the consumer boom would slow. Wall Street is looking for reassurance from Micron, and the positive outlook is likely to lift shares of its peers.
Micron and its memory peers, Samsung Electronics and SK Hynix, have been big beneficiaries of AI infrastructure construction. Big spending by data center operators is driving demand for both traditional memory and a new variety called high-bandwidth memory (HBM) that works with AI systems.
Companies are struggling to meet demand for memory chips, causing shortages in areas such as computers, phones and cars. Although Micron is expanding manufacturing capacity, prices are expected to remain high for some time.
Chief Executive Officer Sanjay Mehrotra said on a conference call with analysts that there is “no telling” when supply will catch up with demand. This situation will continue beyond 2027, he said, adding that the availability of memory chips could gradually improve in 2028.
Revenue for the fiscal third quarter ended May 28 increased to US$41.5 billion. Earnings rose to US$25.11 per share. Analysts’ average estimate was for sales of $35.7 billion and earnings per share of $20.49.
In another sign of Micron’s profitability expansion, adjusted gross profit margin more than doubled from last quarter to 84.9%. Analysts had estimated this metric to be 81.9%, the percentage of sales remaining after production costs are deducted.
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Micron is working with Nvidia, the largest manufacturer of AI processors, to integrate its memory into its AI infrastructure. Earlier this month, NVIDIA CEO Jensen Huang confirmed that the company will rely on Micron’s HBM4 memory, along with memory from competitors, for its next-generation Vera Rubin platform. All three major memory manufacturers have been competing for a piece of that business.
SK Hynix, which currently leads the HBM market, has just announced plans to list its stock in the United States. The company is seeking approximately $29 billion in investment as it looks to further leverage memory demand. bloomberg
