Micron Technology shares surged approximately 16% in after-hours trading on Wednesday, rising from $1,049 to $1,215. This increase followed the company’s fiscal third-quarter report, which surpassed analyst expectations, and its Micron fiscal Q4 revenue guidance of $50 billion. The stock’s jump pushed Micron’s market capitalization above $1.2 trillion, reversing a recent fear-driven sell-off in artificial intelligence (AI) chip stocks.
The memory specialist reported fiscal Q3 revenue of $41.5 billion for the period ending May 28, 2026. This represents a significant increase from $23.9 billion in fiscal Q2 and $9.3 billion in the same quarter last year, marking a 346% year-over-year jump. The company’s GAAP gross margin reached 84.6%, with non-GAAP adjusted earnings per share hitting $25.11.
All four of Micron’s business units—cloud memory, core data center, mobile and client, and automotive and embedded—reported higher revenue compared to both the previous quarter and the year-ago period. This broad-based growth indicates strong demand across diverse market segments for Micron’s memory products.
The primary driver for the stock’s performance was the company’s fiscal Q4 outlook. Micron projected revenue of $50 billion, plus or minus $1 billion, significantly exceeding Wall Street’s modeling of $43 billion. This guidance suggests robust future demand for its memory solutions.
Profitability expectations also impressed investors. Management indicated that fiscal fourth-quarter gross margin is anticipated to climb to approximately 86%. Additionally, adjusted earnings per share for the period were guided to $31.00, plus or minus $1.00, signaling continued strong financial performance.
Despite the strong growth, Micron’s forward price-to-earnings ratio stands at about 10. This multiple is considered restrained for a company that has more than quadrupled its top line in a year, suggesting the market may be anticipating either an earnings peak or a future deceleration in growth.
Beyond the quarterly figures, management’s comments on demand durability were notable. Micron announced “transformational Strategic Customer Agreements,” which are multi-year deals designed to secure volume commitments and provide pricing stability for memory supply. These agreements aim to ensure consistent demand and revenue visibility.
Micron’s HBM4, built on its 1-beta DRAM technology, is already undergoing high-volume shipments to its lead customer. Qualification samples are now being sent to additional end customers, indicating expanding market penetration for its advanced memory products. This suggests a pipeline for future revenue growth.
The market will now observe whether Micron can sustain its accelerated growth trajectory beyond the immediate fiscal quarters. The long-term impact of its strategic customer agreements on pricing power and market share in the competitive memory sector remains a key area of focus. Investors will also monitor the broader AI market to assess continued demand for high-performance memory solutions.