Overview
- Micron reported a record fiscal Q3 with $41.46 billion in revenue and non‑GAAP EPS of $25.11, and it guided fiscal Q4 to about $50 billion and roughly $31 EPS, a set of numbers that far exceeded Wall Street expectations.
- The company disclosed 16 Strategic Customer Agreements that include roughly $100 billion in cumulative minimum commitments and about $22 billion in customer deposits, creating multi‑year, take‑or‑pay revenue visibility.
- Investors responded immediately: the stock jumped about 15–18% to a 52‑week high after the June 25 earnings release and a wave of analysts raised price targets into the $1,500–$2,000 range.
- Micron’s leadership said there is no line of sight to supply meeting demand before 2028, a view that underpins tight HBM and DRAM pricing but also raises near‑term risks from HBM ramp costs, large capex needs, and the future repayment or fulfilment of deposits.
- Memory remains a cyclical market driven by AI data‑center buildouts and slow fab expansion, so the new contracts and higher margins add visibility now but could be offset later if competitors scale capacity or hyperscaler spending softens in 2027–28.