Key Takeaways:
Micron Technology reported Q3 fiscal 2026 revenue of $41.5 billion, more than quadrupling year over year, and guided Q4 to $50 billion in sales.
"Data-center clients currently want 50 percent more memory than Micron can ship," CEO Sanjay Mehrotra said, as demand for high-bandwidth memory used in AI accelerators outstrips supply.
Non-GAAP EPS came in at $25.11, beating the analyst consensus of about $20.60 by 21 percent. Net income climbed to $28.2 billion from $1.9 billion a year earlier. Management guided Q4 non-GAAP EPS to $31, plus or minus $1, with gross margin around 86 percent.
Shares closed at $910.43 on Aug. 24, down 5.83 percent, after an intraday drop to $887.60, as investors locked in gains from a rally that has more than tripled the stock in 2026. The next earnings report is scheduled for Sept. 22.
Micron's Q4 revenue guidance of $50 billion, plus or minus $1 billion, implies sequential growth of roughly 21 percent from the Q3 base. Customers have committed $22 billion of funding to secure future supply, and the company is investing $10 billion in a Boise laboratory focused on advanced memory development.
The company's HBM4 products are expected to ramp in coming years as hyperscale cloud providers expand capacity. The consensus rating on Micron remains Buy with an average price target of $1,261.26, well above the current share price.
Micron trades at roughly 22 times current earnings and about 6 times next year's earnings, compared with Nvidia's forward multiple of 24.76. The stock has gained 253.9 percent year to date, outpacing Nvidia's 20.7 percent advance. The $900 region has emerged as a key technical support level, with the stock briefly falling below it during the Aug. 24 session before bouncing.
The pullback came as part of a broader semiconductor selloff that hit memory and AI-related chip names, including Samsung Electronics and SK Hynix, which announced combined buybacks of up to 150 trillion won ($108 billion) this week. Analysts forecast full-year fiscal 2026 earnings of $72.93 per share, weighted heavily toward the second half as AI deployments ramp.
The Q4 guidance implies management expects AI memory demand to remain strong through the fiscal year end. Investors will watch the Sept. 22 earnings release for updated segment margins and HBM4 production timelines.
This article is for informational purposes only and does not constitute investment advice.
