Micron Technology, a U.S. memory semiconductor company, reported record quarterly earnings driven by increased demand for artificial intelligence (AI) applications. Following the announcement, Micron's stock surged over 12% in after-hours trading, contributing to a broader rally in semiconductor shares.
On June 24, according to Investing.com and other sources, Micron reported third-quarter revenue for fiscal year 2026 of $41.46 billion, with an adjusted earnings per share (EPS) of $25.11. These figures exceeded market expectations of $35.69 billion in revenue and $20.49 EPS by 16.2% and 22.6%, respectively.
Immediately after the earnings release, Micron's stock rose approximately 12.6% to around $1,180. It closed at $1,047.20 during regular trading hours.
The positive results also spurred buying across the semiconductor sector. SanDisk and Western Digital saw their stocks rise by about 10% in after-hours trading, while Qualcomm jumped over 12%. AMD and Intel experienced gains in the 3% range, and NVIDIA also saw a slight increase.
This strong performance is attributed to a rapid increase in demand for high-bandwidth memory (HBM) and DRAM, fueled by investments in AI data centers. The ongoing competition to build AI servers has led to a memory supply shortage, driving up prices and boosting Micron's revenue and profitability.
Micron also provided an optimistic outlook for the next quarter, projecting revenue between $49 billion and $51 billion, with an adjusted EPS of $30 to $32.
Additionally, Micron announced it has secured strategic supply agreements worth $22 billion with its customers. The remaining contractual obligations amount to approximately $100 billion, covering data centers, consumer products, and the automotive market. This indicates a strong push from major clients to secure memory supplies in a tight market.
However, volatility in semiconductor stocks remains a concern. Previously, semiconductor shares experienced significant declines due to fears of overheating in AI investments and profit-taking pressures, and Micron faced substantial adjustments before its earnings announcement. The market will likely focus on future trends in HBM pricing, the pace of supply expansion, and the actual profitability of long-term supply contracts.
* This article has been translated by AI.
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