Micron Delivers Q3 Earnings Surprise: "Memory Supply Shortage to Persist Beyond 2027"

Shares Surge Over 10% in After-Hours Trading

Micron Technology has posted third-quarter results that far exceeded market expectations, driven by the surging demand for artificial intelligence (AI).

Reuters Yonhap News

According to CNBC on June 24 (local time), Micron reported third-quarter revenue for the current fiscal year of 41.46 billion dollars, more than four times higher than the same period last year. Adjusted earnings per share (EPS) came in at 25.11 dollars, beating market estimates of 20.78 dollars.

The company also set its revenue guidance for the current fourth quarter at 50 billion dollars, significantly higher than the market expectation of 43.58 billion dollars. This is a substantial increase compared to the same period last year, when revenue stood at 11.3 billion dollars.

The company predicted that, due to ongoing AI demand, the memory supply shortage is expected to persist beyond 2027. It also announced that it has signed 16 long-term supply contracts, each lasting three to five years, with customers including data center operators and automobile manufacturers.

Revenue from the cloud memory business surged by more than 300% to 13.77 billion dollars. Revenue from memory products for mobile and PC applications also rose by more than 250%, reaching 11.52 billion dollars. Memory sales for automotive and embedded uses soared to 4.63 billion dollars, expanding more than fourfold.

The market reacted positively as well, with the stock price rising by approximately 10% in after-hours trading.

This content was produced with the assistance of AI translation services.