Micron surges 16% on blowout earnings, lifts AI memory stocks
In brief
- Micron's Q3 revenue hit $41.5B, beating $35.7B estimates by 16%
- Q4 guidance of ~$50B significantly exceeds Wall Street's $43.2B forecast
- Memory chip shortage expected to persist beyond 2027, no near-term relief
- SanDisk and SK Hynix each jumped 13% on Micron's earnings announcement
- Bitcoin climbed above $60K; AI crypto miners rose around 3%
Earnings Crush Expectations
Third-quarter revenue came in at $41.5 billion versus estimates of $35.7 billion. Earnings per share (EPS) reached $25.11 compared with expectations of $20.49. The company's performance underscores the relentless demand for memory chips in AI infrastructure.
The company also issued strong fourth quarter guidance, forecasting revenue of approximately $50 billion, well ahead of Wall Street expectations of $43.2 billion. This forward guidance signals confidence in sustained demand momentum. High-bandwidth memory (HBM), which is essential for training and running large AI models, remains the critical bottleneck in the AI buildout.
Supply Shortage Persists
CEO Sanjay Mehrotra told analysts there was "no line of sight" to when supply would catch up with demand, with the shortage expected to persist well beyond 2027.
Mehrotra's candid assessment reveals the structural tightness in memory chip markets. Demand for AI infrastructure continues to outpace supply by a wide margin. This imbalance favors memory chipmakers and their shareholders in the near term.
Sector Ripples and Crypto Aftershocks
Following the earnings report, SanDisk (SNDK) and SK Hynix each jumped around 13%. SK Hynix, which leads the high bandwidth memory (HBM) market, benefited most from the broader sector rally. SK Hynix is also reportedly exploring a US listing that could value the company at around $30 billion.
Crypto markets responded with measured movement. Bitcoin climbed back above $60,000 after markets closed. AI-linked crypto miners also moved higher, with IREN (IREN) and Cipher Digital (CIFR) both rising around 3% in premarket trading. The gains signal modest relief for digital asset investors after the AI boom has weighed heavily on the crypto market this year.
