Overview
- Micron reported fiscal third‑quarter results on June 24 that sent revenue to $41.5 billion, adjusted EPS to $24.67, and gross margin to about 84.6%, driven by large gains across cloud, data center, mobile, and automotive segments.
- The company raised its capital expenditure plan to $27 billion for the year and has begun greenfield construction to add capacity as it said high‑bandwidth memory (HBM) supply is effectively booked through 2027 and into 2028.
- Micron has secured large multi‑year customer commitments and upfront deposits that give the company clearer near‑term cash flow and revenue visibility.
- Investors initially drove the stock sharply higher after the results but the share price later retraced as analysts and traders flagged risks from ramp timing, upfront deposit and ramp costs, and possible competitor capacity additions in 2027–28.
- HBM demand is being powered by AI chips and the inference market, which is especially memory intensive, so Micron’s rapid expansion could protect pricing now but could face price pressure if Samsung and SK Hynix bring significant new capacity later this decade and U.S. wafer output only begins ramping in mid‑2027.