Micron (MU, Financials) reported record third-quarter revenue of $9.3 billion Wednesday; the 37% year-over-year jump was powered by demand for AI-driven memory products, especially in the data center segment. DRAM sales made up 76% of total revenue at $7.1 billion; high-bandwidth memory also surged nearly 50% sequentially.
The company posted adjusted EPS of $1.91; analysts had expected $1.60. Margins widened to 39%, reflecting stronger operational execution.
Looking ahead, Micron guided for Q4 revenue between $10.4 and $11.0 billion; EPS is expected to land between $2.35 and $2.65well above Wall Street forecasts. Free cash flow came in at $1.95 billion; HBM4 chips are now in development for 2026.
Management pointed to tight DRAM supply and improving NAND inventory as tailwinds; analysts cautioned, however, that tariff-related stockpiling could skew future results.
This article first appeared on GuruFocus.
