Chip bonanza: behind one of the strongest technology reports this year

Micron reported revenues of $41.46 billion in the third quarter of 2026, compared to forecasts of $35.7 billion. Earnings per share were $25.11, also above market expectations. The net profit jumped to about 28.2 billion dollars, compared to only 1.9 billion dollars in the corresponding period last year, while the gross profit rate reached a record of 84.9%. The forecast for the next quarter also surprised Wall Street.

The company expects revenues of about 50 billion dollars, compared to analysts’ forecasts of about 43 billion dollars, and a gross profit of about 86%, a figure that indicates that the pressure on the supply of memory chips still continues, and that Micron manages to continue raising prices.

In addition, the gross profit presented by Micron is currently the highest among the major technology companies in the US, and even higher than that of Nvidia and Meta.

Artificial intelligence turns memory chips into a strategic resource

Behind the impressive results is the growing demand for advanced memory chips, and especially for the HBM chips used by the artificial intelligence processors of Nvidia, AMD and other companies. As more data centers are established to train and run AI models, so does the need for fast memory, which has become one of the main bottlenecks in the industry.

Micron says that the shortage is expected to last at least until the end of 2027. As part of the change in the market, the company announced that it has signed long-term supply contracts with 16 strategic customers that include financial commitments of about 22 billion dollars, some with advances and predetermined price conditions. This is a significant change compared to the traditional memory market, which was based for years mainly on short and volatile contracts.

According to the company’s CEO, Sanjay Maharotra, the agreements give Micron greater certainty about the future demand for its products, and allow it to expand production while reducing the volatility that has characterized the industry over the years.

Asia responds enthusiastically

There was also a sharp reaction in Asia. The Kospi index in South Korea jumped by about 5.5%, the SK Hynix share jumped by more than 11%, and Samsung Electronics rose by about 6%, against the background of the same assessment that the demand for memory chips will remain high for years to come. In Japan, the Nikkei index also strengthened, with shares of chip companies recording sharp increases.

Micron’s results come after a period of volatility in chip stocks, during which concerns have been raised that the tech giants may slow down investment in AI infrastructure. The latest report provides the opposite message: the demand for artificial intelligence computing continues to grow, and the shortage of memory chips even strengthens the pricing power of the manufacturers.