Micron Technology Reports Record Profits Amid AI Memory Shortage

Micron Technology reported record-breaking fiscal third-quarter results on June 24, 2026, with revenue surging 346% year-over-year to approximately $41.5 billion. The company posted adjusted earnings of $25.11 per share and a record gross margin of 84.9%, far exceeding Wall Street estimates. This growth was driven by an artificial intelligence boom, leaving high-bandwidth memory (HBM) chips completely sold out through 2026.

To mitigate the industry's traditional boom-bust cycles, Micron pivoted to a new business model centered on 16 Strategic Customer Agreements (SCAs). These multi-year "take or pay" contracts, including a partnership with Ford, involve $22 billion in commitments and deposits with remaining performance obligations of roughly $100 billion. Many of these agreements extend to 2030 and include price floors to protect profit margins.

Following the report, Micron's market capitalization surpassed $1.2 trillion, briefly overtaking Meta Platforms in valuation. However, the stock experienced a correction in July, dropping from a peak of $1,255 as investors took profits and shifted toward AI software. Despite this, CEO Sanjay Mehrotra expects tight supply conditions to persist beyond 2027. To meet demand, Micron plans to spend approximately $27 billion in capital expenditures for fiscal 2026, expanding capacity in Idaho, New York, Taiwan, and Singapore. The company also pledged to return 100% of its excess cash to shareholders starting December 9, 2026.