Overview
- Micron reported a record fiscal third quarter that analysts and company filings showed on Thursday, with revenue near $41.5 billion and adjusted EPS of about $25, producing roughly 84–85% gross margins.
- The company guided fiscal Q4 revenue to about $50 billion, a figure well above Wall Street estimates that helped revalue Micron’s stock and push its market capitalization past the trillion-dollar mark.
- Management and market commentary say the gains are driven by tight supply of high-bandwidth memory or HBM, which is the stacked, ultra-fast DRAM used on AI accelerators and which buyers are paying premiums to secure.
- Micron disclosed multiple multiyear customer agreements with upfront commitments that lock pricing and revenue in the near term and force downstream buyers like device makers to raise product prices.
- Suppliers are accelerating multibillion-dollar capital plans to add fabs but industry and analyst estimates in coverage put meaningful capacity relief near 2028, leaving upside for suppliers and the risk that margins fall if supply or demand patterns change.