Micron Technology shares surged 17.21% to $1,229.00 in pre-market trading on Thursday, gaining $180.49 from its previous close of $1,048.51. The memory-chip manufacturer delivered exceptional quarterly results that crushed analyst estimates and issued upbeat revenue guidance, sending shockwaves through the semiconductor sector. The earnings announcement also lifted sentiment across the broader technology sector, with investors returning to AI-linked chip stocks following a recent selloff. As reported by Goodreturns, the stock has also delivered exceptional gains over the past year, reflecting growing confidence in the company's position within the AI supply chain.
The company reported quarterly revenue of approximately $41.46 billion, significantly higher than the level recorded during the same period last year and comfortably ahead of market expectations. According to Goodreturns, Micron delivered a robust performance in its fiscal third quarter, benefiting from strong demand for high-bandwidth memory and other advanced chips used in AI infrastructure. The results underscore how rapidly AI-related spending by major cloud providers and technology companies continues to expand. The company's revenue more than quadrupled from $9.3 billion a year earlier, with Micron now forecasting revenue of about $50 billion for the current quarter, representing substantial growth compared to the corresponding period a year ago.
Micron has secured 16 long-duration contracts spanning industries such as data centres, automotive technology and advanced computing, with these agreements generally covering periods ranging from three to five years. As reported by Goodreturns, these contracts are expected to generate significant future financial commitments and provide substantial revenue visibility. The company has benefited from the AI infrastructure buildout by major hyperscalers, as large AI models require enormous amounts of memory to process and store data efficiently. Rising demand from AI applications has also tightened memory supply available for consumer products, including smartphones, personal computers and other electronic devices, creating a supply-demand imbalance that has contributed to firmer pricing across the memory market.
The positive momentum extended across major semiconductor companies, with Advanced Micro Devices Inc. climbing 5%, Intel Corp. and Applied Materials popping 6%, and Qualcomm soaring about 9% on Thursday. As reported by Capital.com Senior Market Analyst Daniela Hathorn, "U.S. equities have recovered some ground as Micron's earnings have provided fresh reassurance that the AI investment cycle remains firmly intact." The relief rippled across Asia, where shares of Micron's South Korean rivals SK Hynix and Samsung Electronics rebounded sharply in Thursday trade after being at the epicenter of the rout earlier this week. SanDisk and Western Digital stocks rose over 12% each, while Seagate shares were up 10% in overnight trading. Micron's stock was up nearly 16%, and the Roundhill Memory ETF (DRAM) was up 10%. Notably, Micron management indicated that the chip shortage would go beyond 2027, a significant change from previous guidance that called for it to end by the start of next year.
