NEW YORK, June 25, 2026, 05:03 EDT
- Micron shares changed hands at $1,224.01 before the open, a jump of 16.7% over the Wednesday close at $1,048.51.
- Signed customer deals come with around $100 billion in minimum-price contracted revenue and $22 billion in expected deposits and commitments.
- The stock’s move isn’t just about a single earnings beat. What matters now is how much Micron can tie down its old memory-cycle risk in multi-year contracts.
Micron Technology, Inc. NASDAQ:MU traded 16.7% higher at $1,224.01 in premarket action Thursday. If the price sticks, about $198 billion gets added to its equity value based on Google Finance’s count of 1.13 billion shares. That’s nearly double the $100 billion in minimum-price remaining performance obligations linked to strategic customer agreements that were signed or finished after the last quarter.
Investors are seeing something different in Micron this quarter. The stock isn’t trading just on spot DRAM and NAND prices anymore. Now, the market is putting value on customer-funded supply, price floors, and the chance this memory cycle remains tight.
Micron is expecting $22 billion in cash deposits and related financial commitments from its agreements, with $18 billion of that as cash deposits. CFO Mark Murphy said these deposits will be recorded in financing cash flow, not touching free cash flow. The $18 billion number is close to Micron’s record $18.3 billion in adjusted free cash flow for the fiscal third quarter.
Micron posted fiscal third-quarter revenue of $41.46 billion, up from $23.86 billion last quarter and $9.30 billion a year ago. Non-GAAP earnings came in at $25.11 per share. Looking ahead, the company expects fiscal fourth-quarter revenue of $50 billion, give or take $1 billion, with non-GAAP EPS projected at $31, up or down $1.
DRAM did the heavy lifting on price. DRAM revenue was $31.3 billion, about 76% of total revenue. DRAM bit shipments were only up in the low-single digits, but prices jumped in the low-60% range. On NAND, revenue landed at $9.9 billion. Bit shipments climbed mid-single digits, while prices rose by the mid-80% range.
Micron CEO Sanjay Mehrotra said in prepared comments that the company’s results point to the “strategic value of memory in the AI era.” Mehrotra said supply is staying tight as demand keeps outpacing it, a dynamic he expects to last “beyond calendar 2027.” GlobeNewswire
Micron’s results pushed more than just its own stock higher. Nasdaq 100 E-minis climbed 2.06% as of 3:00 a.m. ET after upbeat forecasts from Micron and Qualcomm Inc. NASDAQ:QCOM boosted AI tech plays, Reuters said. Micron’s shares in Europe were up 18.7%.
Daniel Newman, Futurum Group CEO, said, “The size and scale of the AI build out has been underestimated.” Direxion’s head of capital markets, Jake Behan, pushed back: “The bull case is built on tightness.” Reuters
Micron’s outlook points to some risk in its own forecast. Murphy said the company’s margin guide for the fiscal fourth quarter assumes there will be a “meaningful moderation” in price increases. Micron is also expecting to spend about $10 billion on capital expenses in the fiscal fourth quarter, and is guiding to around $27 billion for fiscal 2026. For fiscal 2027, management sees quarterly capex running above the fiscal fourth quarter’s number.
Analyst targets for the stock stayed all over the map on Google Finance after earnings, with 12-month estimates between $900 and $1,750. J.P. Morgan’s Harlan Sur on June 25 kept his buy call and $1,540 target. Goldman Sachs’ James Schneider kept hold with a $900 target a day earlier.
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