Why Micron Stock Skyrocketed to a New All-Time High Today

Written by Joe Tenebruso for The Motley Fool->

Micron has the chips hyperscalers need to operate their data centers.

With memory in short supply, Micron's profits are soaring.

Shares of Micron Technology (NASDAQ: MU) surged on Thursday after the memory chip leader delivered a blockbuster earnings report.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Micron's revenue rose a staggering 346% year over year to $41.5 billion in its fiscal third quarter, which ended on May 28.

The AI boom and the massive data sets it requires are creating enormous demand for the high-performance memory chips Micron produces.

With demand outpacing supply, the chipmaker is enjoying a highly favorable pricing environment that's driving its profit margins sharply higher.

Micron's gross margin climbed to 84.6%, up from 37.7% in the prior-year quarter.

The semiconductor leader's net income, in turn, increased 15-fold to $28.2 billion, or $24.67 per share.

"Micron's record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era," CEO Sanjay Mehrotra said.

Micron guided for $50 billion in revenue and $31 in adjusted earnings per share in the fourth quarter.

Yet it was management's comments regarding tight supply conditions persisting beyond calendar 2027 due to booming AI-driven demand that really got investors excited.

"We currently do not have line of sight as to when memory supply will be able to catch up with increasing demand," Mehrotra said during a conference call with analysts.

Before you buy stock in Micron Technology, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,428!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,221,398!*

Now, it’s worth noting Stock Advisor’s total average return is 895% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of June 25, 2026.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This data feed is not available at this time.