NEW YORK, August 1, 2026, 15:05 EDT
- Micron ended Friday at $823.03, falling 5.9% on the day and 10.6% for the week.
- Cloud and main data-center divisions accounted for 61.0% of revenue in the fiscal third quarter.
- Fourth-quarter preliminary guidance forecasts revenue rising 20.6% sequentially, with a gross margin of 86%.
U.S. cash markets did not open on Saturday. Micron finished Friday’s session at $823.03, following another steep turnaround.
The narrative centers on the disconnect. Demand rose even as investors lowered the value they assigned to its endurance.
Micron registered five notable swings during the day, with three drops exceeding 8%. Shares declined 10.6% compared to the previous Friday.
| Session | Close | Daily move |
|---|---|---|
| July 27 | $900.20 | -2.25% |
| July 28 | $820.53 | -8.85% |
| July 29 | $739.00 | -9.94% |
| July 30 | $874.66 | +18.36% |
| July 31 | $823.03 | -5.90% |
| Week from July 24 | $823.03 | -10.63% |
Despite recovering 11.4% from Wednesday’s close, July still saw a 28.7% decline. The volatility indicates investors are responding to the overall cycle rather than solely focusing on earnings.
The core and cloud data-centre businesses accounted for 61.0% of third-quarter revenue.
The previous quarter saw that share at 56.3%. One year ago, it stood at 52.9%. The current AI cycle is providing increased operating leverage.
Micron’s evolving financials explain the shift in conversation from demand towards endurance. The segment proportions below are based on disclosed revenue figures.
| Metric | FQ3 2025 | FQ2 2026 | FQ3 2026 | FQ4 2026 preliminary guide |
|---|---|---|---|---|
| Revenue | $9.30B | $23.86B | $41.46B | $50.0B ± $1.0B |
| GAAP gross margin | 37.7% | 74.4% | 84.6% | Approximately 86% |
| GAAP diluted EPS | $1.68 | $12.07 | $24.67 | $30.73 ± $1.00 |
| Cloud plus core data-center share | 52.9% | 56.3% | 61.0% | Not disclosed |
Initial guidance for the fourth quarter points to sequential revenue growth of 20.6%. GAAP earnings per share are projected to increase roughly 24.6%, with a gross margin expected to be close to 86%.
Customers sent demand signals. Amazon.com, Inc. NASDAQ:AMZN increased its 2026 capital expenditure by 10% to $220 billion.
Chief Executive Andy Jassy attributed the bulk of the rise to memory acquisitions. He added that capacity is expected to be constrained until 2027.
Apple Inc. NASDAQ:AAPL reported major supply limitations and restricted adaptability. The firm is considering other memory supplier options.
Samsung Electronics Co., Ltd. KRX:005930 anticipates chip supply constraints persisting until 2028. The company aims to allocate around two-thirds of its memory production to long-term agreements. “Almost all customers are requesting multi-year supply contracts,” memory executive Jaejune Kim said. Reuters
However, investors have been hesitant to make that leap. “Investors are questioning how long their record-high margins will be sustainable,” analyst Kim Seok-hwan said. Reuters
Friday’s valuation overview highlighted the difference, comparing Micron to SanDisk Corporation NASDAQ:SNDK and Nvidia Corporation NASDAQ:NVDA.
| Company | Friday close | Daily move | Market value | P/E |
|---|---|---|---|---|
| Micron | $823.03 | down 6.0% | $942.4B | 18.6 |
| SanDisk | $1,214.83 | off 5.2% | $190.7B | 42.2 |
| Nvidia | $200.75 | up 3.0% | $4.90T | 30.6 |
Micron traded at a price-to-earnings ratio 56% lower than SanDisk’s. While the comparison isn’t exact, the lower multiple reflects the risks associated with the memory cycle.
Risks: Pricing may come under strain from Chinese rivals. Reduced spending by hyperscalers, difficulties with HBM4 rollout, or a rise in interest rates could also weigh on the stock.
Markets resume trading on Monday. July manufacturing figures are set for release at 10:00 a.m. ET, with payroll data expected Friday at 8:30 a.m.
According to a Reuters survey, 83,000 jobs are expected to be added, with unemployment forecast to hold at 4.3%. Micron’s next scheduled investor event falls on August 10, beyond the upcoming week.
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