Key facts
- Micron Technology reported record Q3 revenue of $41.5 billion, surpassing estimates of $35.7 billion.
- Micron's Q3 earnings per share reached $25.11, exceeding analyst expectations of $20.49.
- The company forecasts Q4 revenue of approximately $50 billion, well above Wall Street expectations of $43.2 billion.
- CEO Sanjay Mehrotra indicated that AI memory supply shortages are expected to continue beyond 2027.
- Micron shares surged 16% in premarket trading following the strong earnings report and guidance.
- Micron Technology surpassed Meta Platforms' market capitalization.
Micron Technology reported blowout third-quarter earnings that significantly surpassed Wall Street expectations, driving a surge in its stock price and lifting the broader AI memory sector. The company announced Q3 revenue of $41.5 billion, exceeding estimates of $35.7 billion, and earnings per share (EPS) of $25.11, compared to expectations of $20.49.
Micron's shares jumped 16% in premarket trading on Thursday. CEO Sanjay Mehrotra stated that there is "no line of sight" to AI memory supply catching up with demand, with shortages expected to persist beyond 2027. The company also issued strong fourth-quarter guidance, forecasting revenue of approximately $50 billion, well ahead of Wall Street expectations of $43.2 billion.
The strong performance in AI memory chips, essential for training and running large AI models, has also boosted related stocks like SanDisk and SK Hynix, which each jumped around 13%. AI-linked crypto miners also saw gains. The article notes that the AI boom has weighed on the crypto market, with Bitcoin climbing back above $60,000 after markets closed, but suggests bullish AI sentiment could pull liquidity away from crypto. Micron Technology surpassed Meta Platforms' market valuation for the first time on Thursday, driven by a solid forecast that extended its AI-driven stock increase.