{"slug": "micron-shares-soar-after-ai-fueled-forecast-shatters-projections", "title": "Micron shares soar after AI-fueled forecast shatters projections", "summary": "Micron Technology Inc. shares surged after the company issued a quarterly sales forecast of approximately $50 billion, far exceeding analyst estimates of $43.2 billion, signaling sustained AI-driven growth. The memory chip maker also secured 16 strategic customer agreements averaging three years, which analysts say could mitigate industry boom-and-bust cycles. The upbeat outlook lifted US share futures and reassured markets amid recent AI sector volatility.", "body_md": "**Getting your**\n\n[Trinity Audio](//trinityaudio.ai)player ready...**By Dina Bass, Bloomberg**\n\n[Micron Technology Inc. shares](https://www.mercurynews.com/2026/06/24/micron-earnings-artificial-intelligence/) surged after the largest US maker of computer memory chips issued a quarterly sales forecast that crushed Wall Street estimates, signaling that an AI-fueled growth run remains strong.\n\nRevenue will be approximately $50 billion in the fiscal fourth quarter, which runs through August, the company said in a statement Wednesday. Analysts estimated $43.2 billion on average. Excluding some items, profit will be about $31 a share, compared with a projection of $25.31.\n\nMicron also has secured 16 strategic customer agreements, which average three years in length. That suggests the company can mitigate the boom-and-bust cycles that have plagued the memory chip industry, said Bloomberg Intelligence analyst Jake Silverman.\n\n“This should sustain upward pricing revisions through at least 2027, albeit at a decelerating pace,” he said in a note. “The agreements can also reduce pricing volatility as supply catches up to demand by around 2029, we calculate.”\n\nMicron shares jumped as much as 20% to $1,253 at 9:35 a.m. in New York. They had already more than tripled this year, outpacing all other major US chip stocks.\n\nMicron posted the results at a delicate moment for the AI industry. Shares of chipmakers and other technology companies had been hammered in recent days on fears that a spending boom was faltering.\n\nWall Street was looking to Micron for reassurance — something the company delivered — and the upbeat outlook is poised to lift a broad swath of stocks. US share futures gained in the wake of the results, with contracts for the Nasdaq 100 climbing sharply.\n\nMicron and its peers in the memory space — Samsung Electronics Co. and SK Hynix Inc. — have become major beneficiaries of the AI infrastructure build-out. A spending spree by data center operators has stoked the appetite for both conventional memory and a newer variety called high-bandwidth memory, or HBM, that works with AI systems.\n\nThe companies have struggled to satisfy memory-chip demand, creating shortages in areas like computers, phones and cars. Though Micron is expanding its manufacturing capacity, prices are expected to remain high for the foreseeable future.\n\nChief Executive Officer Sanjay Mehrotra said on a conference call with analysts that there was “no line of sight” to when supply will catch up with demand. The situation will persist beyond calendar 2027, he said, adding that availability of memory chips may improve gradually in 2028.\n\nFor the fiscal third quarter, which ended May 28, sales rose to $41.5 billion. Earnings climbed to $25.11 a share. Analysts on average had estimated $35.7 billion in revenue and $20.49 a share in profit.\n\nIn another sign of Micron’s widening profitability, its adjusted gross margin more than doubled to 84.9% last quarter. Analysts had estimated 81.9% for that measure, the percentage of sales remaining after deducting production costs.\n\nMicron works with Nvidia Corp., the largest maker of artificial intelligence processors, to integrate its memory into AI infrastructure. Earlier this month, Nvidia Chief Executive Officer Jensen Huang confirmed that his company will rely on Micron’s HBM4 memory, along with those of its rivals, for its next-generation Vera Rubin platform. All three of the major memory makers have been jockeying for a slice of that business.\n\nSK Hynix, which currently leads the HBM market, this week announced plans for a stock listing in the US. The company is seeking roughly $29 billion in the offering, aiming to further capitalize on memory demand.\n\n(Updates share move starting in first paragraph.)\n\nMore stories like this are available on [bloomberg.com](https://www.bloomberg.com)\n\n©2026 Bloomberg L.P.", "url": "https://wpnews.pro/news/micron-shares-soar-after-ai-fueled-forecast-shatters-projections", "canonical_source": "https://www.mercurynews.com/2026/06/25/micron-shares-soar-after-ai-fueled-forecast-shatters-projections/", "published_at": "2026-06-25 15:58:30+00:00", "updated_at": "2026-06-25 16:46:58.433367+00:00", "lang": "en", "topics": ["ai-infrastructure", "ai-chips", "ai-products", "ai-research", "ai-startups"], "entities": ["Micron Technology Inc.", "Bloomberg", "Jake Silverman", "Samsung Electronics Co.", "SK Hynix Inc.", "Sanjay Mehrotra", "Nvidia Corp.", "Jensen Huang"], "alternates": {"html": "https://wpnews.pro/news/micron-shares-soar-after-ai-fueled-forecast-shatters-projections", "markdown": "https://wpnews.pro/news/micron-shares-soar-after-ai-fueled-forecast-shatters-projections.md", "text": "https://wpnews.pro/news/micron-shares-soar-after-ai-fueled-forecast-shatters-projections.txt", "jsonld": "https://wpnews.pro/news/micron-shares-soar-after-ai-fueled-forecast-shatters-projections.jsonld"}}