🔩 #MicronRevenueJumps346%To$41.5B — Memory is the New Oil
Micron just dropped the most important earnings print of the AI cycle so far.
The headline:
💥Q3 FY26 revenue $41.46B — up 346% YoY from $9.3B
💥EPS $25.11 vs $20.20 expected — a 24% beat
💥Gross margin 84.6% — up from 37.7% a year ago
💥Q4 guide: $50B revenue , $31 EPS — absolute monster
What changed structurally: Micron locked in $22B in multi-year take-or-pay contracts with hyperscalers — pricing floors, cash deposits, guaranteed allocation. HBM3E and HBM4 are fully booked through 2027 into 2028. This is no longer a cyclical commodity — it's AI's toll booth.
As @LeopoldQF noted: "Micron just generated more profit this quarter than NVIDIA did one year ago — and it trades at $1.1T vs NVIDIA's $4T at the time."
Management explicitly said memory supply stays tight beyond 2027 . Even if supply improves in 2028, it may not keep up with demand.
The market reaction: Stock surged +16% , tacking on $200B+ in market cap . Price targets went parabolic — Melius raised from $1,100 to $2,200.
The bigger picture: This isn't just a chip earnings beat. It's the proof that AI infrastructure demand is cascading down the stack — from GPU → memory → everything else. Apple raising MacBook prices, Xbox following suit — the memory inflation is now hitting consumers.
Memory was the cyclical trade. Now it's AI's strategic bottleneck.
Not financial advice. DYOR.
Micron just dropped the most important earnings print of the AI cycle so far.
The headline:
💥Q3 FY26 revenue $41.46B — up 346% YoY from $9.3B
💥EPS $25.11 vs $20.20 expected — a 24% beat
💥Gross margin 84.6% — up from 37.7% a year ago
💥Q4 guide: $50B revenue , $31 EPS — absolute monster
What changed structurally: Micron locked in $22B in multi-year take-or-pay contracts with hyperscalers — pricing floors, cash deposits, guaranteed allocation. HBM3E and HBM4 are fully booked through 2027 into 2028. This is no longer a cyclical commodity — it's AI's toll booth.
As @LeopoldQF noted: "Micron just generated more profit this quarter than NVIDIA did one year ago — and it trades at $1.1T vs NVIDIA's $4T at the time."
Management explicitly said memory supply stays tight beyond 2027 . Even if supply improves in 2028, it may not keep up with demand.
The market reaction: Stock surged +16% , tacking on $200B+ in market cap . Price targets went parabolic — Melius raised from $1,100 to $2,200.
The bigger picture: This isn't just a chip earnings beat. It's the proof that AI infrastructure demand is cascading down the stack — from GPU → memory → everything else. Apple raising MacBook prices, Xbox following suit — the memory inflation is now hitting consumers.
Memory was the cyclical trade. Now it's AI's strategic bottleneck.
Not financial advice. DYOR.