Key Takeaways
- Micron shares declined approximately 4.7% during pre-market trading Friday following Thursday’s record peak of $1,255
- Fiscal Q3 2026 sales reached $41.46 billion, representing a staggering 346% increase year-over-year and significantly surpassing projections
- Goldman Sachs upgraded its price objective while maintaining a Neutral stance, suggesting much of the positive momentum is already reflected in the share price
- South Korea’s SK Hynix revealed intentions to secure $29.4 billion through a Nasdaq ADR offering, intensifying industry competition
- Fourth-quarter revenue outlook of $49–$51 billion substantially exceeded analyst consensus of $43.2 billion
Shares of Micron Technology experienced a dramatic 15.8% surge Thursday, momentarily surpassing both Meta Platforms and Tesla by market capitalization before surrendering 4.7% during Friday’s pre-market session as investors locked in profits.
The memory chip manufacturer’s shares peaked at an unprecedented $1,255 during Thursday trading. When markets closed, Micron commanded a $1.37 trillion valuation, narrowly trailing Meta’s $1.38 trillion and Tesla’s $1.41 trillion.
This explosive movement followed Micron’s fiscal third-quarter 2026 earnings release on June 24. The company reported sales of $41.46 billion, representing a remarkable 346% jump from the prior year and crushing analyst expectations of $35.7 billion. Adjusted earnings per share reached $25.11, comfortably exceeding the Street’s $20.49 forecast.
For the upcoming quarter, Micron projected revenue between $49 billion and $51 billion — approximately $50 billion at the range’s center — dramatically outpacing Wall Street’s $43.2 billion projection. This substantial guidance beat energized investors and sent shares soaring.
Chief Executive Sanjay Mehrotra informed analysts during the earnings call that he sees “no line of sight” toward supply meeting demand, projecting tight market conditions extending past 2027, with only incremental supply relief anticipated in 2028.
The company also revealed $22 billion worth of customer agreements securing future memory chip deliveries, highlighting the unprecedented demand from artificial intelligence infrastructure buyers.
Year-to-date in 2026, the stock has skyrocketed approximately 326%. Micron initially breached the $1 trillion market capitalization threshold in late May.
Goldman Maintains Cautious Outlook Despite Strong Results
While many investors celebrated, Goldman Sachs took a more conservative approach. The investment bank elevated its price target on Micron while preserving its Neutral rating. Analyst James Schneider acknowledged improved fundamentals and enhanced supply chain transparency, but warned that the stock’s remarkable ascent may have already incorporated most foreseeable gains.
This tempered perspective encouraged some market participants to realize profits following an extraordinary week.
Broader market headwinds also played a role. The Nasdaq Composite declined 0.5% Thursday to close at 25,358.60, extending its losing streak to four consecutive sessions — the longest downturn since February. Apple’s sharp 6.1% tumble, triggered by iPad and MacBook price increases aimed at offsetting escalating chip expenses, created significant drag on the technology-heavy index.
Korean Competitor Enters the Arena
South Korea’s SK Hynix disclosed plans to raise as much as $29.4 billion through a Nasdaq American Depositary Receipt offering, with trading potentially commencing by July 10.
This strategic move provides American investors with a direct investment avenue in the high-bandwidth memory sector, creating a potential competitor for investment dollars currently flowing into Micron shares.
Despite Friday’s retreat, Micron’s stellar earnings catalyzed a broader semiconductor sector rally. The Philadelphia Semiconductor Index climbed 3.2% Thursday and is positioned for its strongest quarterly showing in its history. Sandisk shares surged 22%, Western Digital advanced 7.4%, and Seagate posted a 4.3% gain.
Micron’s fourth-quarter revenue guidance range of $49–$51 billion stands as the critical metric investors will monitor heading into next quarter’s results.
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