Overview
- Micron, which reported on June 24, delivered a record fiscal Q3 with about $41.46 billion in revenue, roughly 84.6% gross margin, and guidance of about $50 billion revenue and 86% gross margin for the next quarter.
- Management says high‑bandwidth memory (HBM3E and HBM4) is sold out through 2027 and disclosed 16 take‑or‑pay Strategic Customer Agreements plus roughly $22 billion in advance deposits that lock near‑term sales.
- The quarter generated unprecedented cash flow, with company figures showing roughly $25.4 billion in operating cash flow and about $18.3 billion in adjusted free cash flow, leaving Micron with a much stronger balance sheet.
- Market reaction is split: some investors and commentators call Micron a secular AI winner on technology leadership and contracted demand, while skeptics point to Michael Burry’s disclosed short and analyst warnings that 2027–28 capacity ramps could relieve tightness and pressure prices.
- Broader implications include heavy U.S. fab buildouts and elevated capex that will take years to produce wafers, meaning near‑term tightness is likely to hold but the industry faces the risk that future capacity additions will reverse current pricing and margins.