NEW YORK, July 22, 2026, 11:15 a.m. (EDT)
- U.S. markets traded as scheduled, with Micron hovering around $968 following a 12.2% surge on Tuesday.
- The action increased the total by about $119 billion, surpassing approximately $100 billion in strategic-agreement commitments.
- Price increases drove growth in the fiscal third quarter. The upcoming indicator for Alphabet’s NASDAQ:GOOGL performance will be its capital expenditure.
Shares of Micron Technology, Inc. NASDAQ:MU dipped 0.3% on Wednesday following a 12.2% jump in the previous session. The surge lifted the company’s market capitalization by roughly $119 billion, according to an initial estimate.
That amount surpassed Micron’s approximately $100 billion in remaining performance obligations from strategic agreements. These metrics are not equivalent under accounting standards. The comparison indicates that investors assign value to scarcity that goes beyond existing signed contracts.
Micron’s financial figures support the market’s outlook. In the fiscal third quarter, most of the growth was driven by higher prices rather than increased shipments.
The shortfall was seen in both major product lines. DRAM revenue climbed 343% compared to a year ago.
| Product | Sales change y/y | Average selling prices | Bit shipments |
|---|---|---|---|
| DRAM | +343% | In the low-260% range | In the low-20% range |
| NAND | +361% | In the mid-310% range | In the low double-digit range |
The price and shipment data represent Micron’s estimated annual changes.
The shift in pricing pushed consolidated gross margin up to 85%, compared to 38% in the prior year. Revenue totaled $41.46 billion, and adjusted free cash flow amounted to $18.3 billion.
Micron projected fourth-quarter revenue of $50 billion, with a possible variance of $1 billion. The company anticipates a gross margin of approximately 86%.
The share is essentially a wager on the duration of the supply shortage. That remains the fundamental question.
The $119 billion estimate was generated from Tuesday’s share price increase of $105.36. This figure is based on 1.129 billion shares outstanding as of June 17.
Micron holds 16 key customer agreements representing $22 billion in commitments. The contracts feature deposits, take-or-pay provisions, and pricing floors.
Chief Executive Sanjay Mehrotra anticipates “tight conditions to persist beyond calendar 2027.” That outlook underpins the existing pricing scenario. Reuters
The recovery extended beyond Micron. Sandisk Corp. NASDAQ:SNDK advanced 14.3% on Tuesday, and Western Digital Corp. NASDAQ:WDC increased by 12.5%. The PHLX Semiconductor Sector (INDEXNASDAQ:SOX) was up 5.2%.
Western Digital rose 1.6% as of 11 a.m. Wednesday, while Sandisk was unchanged. Micron dipped 0.3%, whereas the chip index climbed 1.1%. Micron’s underperformance draws investor focus to Alphabet’s expected spending plans.
According to CFRA strategist Sam Stovall, “the magnitude of capex spending will be central.” Alphabet Inc. NASDAQ:GOOGL is set to announce its second-quarter earnings after the close on Wednesday. Reuters
Bank of America Corp. NYSE:BAC analyst Vivek Arya reaffirmed a Buy rating on Tuesday. Arya’s price target of $1,550 was approximately 60% higher than Micron’s price by late morning.
Risks: Micron notes that memory prices have fluctuated significantly during the past five fiscal years. An increase in industry supply may drive prices down, and a slowdown in AI-related spending could affect profit margins.
Micron is still trading roughly 20% beneath its record closing price set on June 25. On Tuesday, shares regained just 30% of the loss from their peak to Monday’s low. The ongoing rebound may hinge on signals from Alphabet’s capital expenditures.
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