- Micron soared in premarket trading a day after reporting its third-quarter earnings.
- The company's revenue quadrupled from $9 billion a year earlier to nearly $42 billion.
- Micron has benefited from surging demand for memory in the AI infrastructure buildout.
The company's revenue more than quadrupled from $9.3 billion a year earlier to $41.46 billion in its fiscal third quarter, it reported on Wednesday. Revenue came in higher than analyst expectations of nearly $36 billion, according to LSEG consensus estimates.
The company is now forecasting revenue of about $50 billion for the current quarter, an increase from
$11.3 billion in the prior year. Its stock was last seen up 16.4% in premarket trading and rose a staggering 723% over the past year, pushing the company's market cap to $1.2 trillion.
Micron has benefited from the AI infrastructure buildout by major hyperscalers, as AI data centers require large amounts of memory chips. That has reduced the supply of memory available for smartphones, PCs, and other devices, creating a supply imbalance that has pushed memory prices higher and boosted Micron's results.
The company said on Wednesday that it has signed 16 long-term agreements with several customers ranging from data centers to automakers, locking in sales for a period of three to five years, and it expects to see financial commitments of $22 billion from them.
The company expects about 40% of its revenue to come from long-term contracts with a minimum price built in, RBC Capital Markets analysts said in a note on Wednesday. That should help limit margin risk even if demand weakens during the contract term, which is typically five years, they added.
"Our base case is for current upcycle to continue through 2027, and SCAs give us added conviction regarding sustainability. We raise estimates, raise PT, and reiterate Outperform," the analysts said.<small>Source: CNBC</small>
Business
Micron stock jumps over 16% in premarket trading after blockbuster earnings
CNBC
June 25, 2026
2 views
Advertisement
How did this make you feel?
