Micron Posts Blowout Results, Fueling a Fresh Rally in AI Chip Stocks

Micron, the memory-chip giant, delivered one of the strongest technology earnings reports of the year overnight, beating Wall Street expectations by a wide margin and reviving optimism around AI-linked stocks. The company’s shares jumped more than 12% in after-hours trading, Nasdaq futures rose sharply, and Asian markets climbed, led by chipmakers.

For the fiscal third quarter of 2026, Micron reported revenue of $41.46 billion, well above analysts’ estimates of about $35.7 billion. Earnings per share came in at $25.11, also ahead of forecasts. Net profit surged to $28.2 billion from just $1.9 billion a year earlier, and gross margin reached a record 84.9%.

The company also stunned investors with guidance for the next quarter. Micron expects revenue of about $50 billion, versus market expectations of roughly $43 billion, and a gross margin of about 86%. That suggests memory-chip supply remains tight and that Micron is still able to raise prices. The company said its gross margin is now the highest among major U.S. technology companies, even above Nvidia and Meta.

The strength is being driven by rising demand for advanced memory chips, especially HBM chips used in AI processors from Nvidia, AMD and others. Micron said the shortage is likely to continue at least through the end of 2027. As part of the market shift, it signed long-term supply agreements with 16 strategic customers worth about $22 billion, some including upfront payments and fixed pricing. CEO Sanjay Mehrotra said the deals give Micron better visibility into future demand and help it expand production while reducing the volatility long associated with the memory market. The results also eased recent concerns that big tech might slow investment in AI infrastructure.