Micron (MU) Posts Blowout Q3, AI Demand to Stretch Past 2027

Micron Technology (NASDAQ: MU) reported fiscal third-quarter earnings after the close on June 24 that cleared analyst estimates by a wide margin. Revenue came in at $41.46 billion, above the $35.59 billion consensus, and adjusted earnings per share hit $25.11 versus a forecast of $20.60. Shares rose about 2.7% in after-hours trading.

The beat was driven by what the company described as sustained demand for high-bandwidth memory used in AI training and inference. Bank of America raised its price target on MU to $1,500 ahead of the print, citing the longer-term AI memory opportunity. Micron also disclosed a partnership with Anthropic, the AI lab behind Claude, to develop memory and storage technologies tailored for AI workloads. A tokenized version of Micron shares on Solana saw increased activity after the print, though volume there remains a fraction of the Nasdaq-listed equity.

The more consequential number came from the guidance. For the fourth quarter, Micron projected revenue between $49 billion and $51 billion, well above the $43.24 billion analysts had been expecting. The company also forecast adjusted gross margins of roughly 86%, a level that signals continued pricing power across its product lines.

CEO Sanjay Mehrotra said AI-driven demand should keep memory markets tight beyond 2027, a timeframe that would stretch well past the typical semiconductor cycle. That outlook is the part investors will weigh most heavily in the coming weeks. If demand holds at the pace Mehrotra described, the revenue and margin profiles for 2026 and 2027 could look different from anything Micron has delivered in a decade.

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